Ministry of Industry and Mineral Resources Cuts Costs for National Factories and Enhances Their Global Competitiveness
Riyadh – Rabi‘ Al-Akhir 27, 1447 AH / October 19, 2025 | BETH
The Ministry of Industry and Mineral Resources continues its efforts to enhance the global competitiveness of Saudi industry and to strengthen the sector’s role in diversifying the national economy in line with the goals of Saudi Vision 2030.
As part of this effort, the ministry has launched a series of initiatives and programs designed to improve the efficiency of national factories and reduce production and operational costs, thereby enhancing the attractiveness of Saudi Arabia’s industrial investment environment.
🔹 Industrial Competitiveness Program
The Industrial Competitiveness Program is one of the ministry’s key initiatives aimed at supporting the industrial sector by reducing energy consumption, one of the largest operational cost components.
The program focuses on:
Providing immediate and developmental solutions to improve energy efficiency.
Encouraging the transition to more sustainable energy sources.
Raising awareness and promoting best operational practices to enhance long-term competitiveness.
The program targets 16 industrial sectors, with more than 500 factories applying to benefit.
Participating companies have achieved:
Up to 40% reduction in energy consumption.
Around 12% decrease in production costs.
In addition, over 100 factories have undergone energy audits conducted by certified energy auditors.
The program also aims to reduce carbon emissions, optimize energy use, create investment opportunities in energy-efficiency projects, and develop national competencies in energy management systems.
🔹 Future Factories Program
To further promote the adoption of modern technologies and boost manufacturing efficiency, the ministry launched the “Future Factories Program”, which aims to automate 4,000 factories and transform them into smart facilities that adopt Fourth Industrial Revolution technologies.
This transformation is intended to increase operational efficiency and reduce reliance on low-skilled labor.
The program offers a set of initiatives and financial incentives to cover the cost of machinery and software, as well as training programs to build the skills required for advanced manufacturing.
To date, more than 490 factories have benefited from the program’s solutions, while the number of certified assessors and service providers has reached 114.
The total value of approved financial incentives has exceeded SAR 28 million, and more than 1,200 trainees have been enrolled in advanced manufacturing training programs.
🔹 Expanded Industrial Customs Exemption
To further ease the financial burden on industrial establishments, the ministry has expanded the scope of the industrial customs exemption to include imports by licensed factories with valid industrial permits.
The exemption now covers specific materials and products, including:
Raw materials
Semi-finished materials
Finished products
Packaging materials
Machinery, equipment, and spare parts directly used in production operations
🔹 Conclusion
Through these initiatives, the Ministry of Industry and Mineral Resources reaffirms its commitment to reducing costs for national factories, strengthening the Saudi industrial sector’s global competitiveness, and advancing sustainable economic growth in line with the goals of Saudi Vision 2030.