AI Center for Manufacturing and Mining set for Saudi Arabia

This initiative aims to unlock the full potential of data and AI. Shutterstock.
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Updated 13 February 2024
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AI Center for Manufacturing and Mining set for Saudi Arabia

RIYADH: Saudi Arabia is set to bolster national competencies in artificial intelligence with a new dedicated center, as part of a drive to turn the Kingdom into a leading industrial powerhouse.

On the sidelines of the first Global Smart City Forum in Riyadh, the Ministry of Industry and Mineral Resources, in collaboration with the Saudi Data and Artificial Intelligence Authority, announced the inauguration of the AI Center for Manufacturing and Mining.

This initiative aims to unlock the full potential of data and AI and support the strategic ambitions to make the Kingdom a global logistics hub, enhancing the growth rate of the industry and local content.

“Where we are focusing on helping our economy, be digitalized and be able to benefit from new technologies,” Minister of Industry and Mineral Resources Bandar Alkhorayef said during his speech.

He underlined that Saudi Arabia had initiated its national industrial strategy, which entails ambitious objectives such as tripling manufacturing gross domestic product, more than doubling manufacturing employment, and increasing exports threefold by the end of 2030.

Additionally, the minister stated that the Kingdom plans to triple the number of factories under the National Industrial Strategy. 

“We are betting on technology to fulfill these objectives and leapfrog our global industrial competitiveness,” Alkhorayef said.

By clustering new factories equipped with the latest technology within smart industrial cities, the Kingdom aims to enhance competitiveness, prioritize worker safety, demonstrate resilience, and embrace sustainability.

“We are not starting from scratch,” Alkhorayef said, adding: “Saudi Arabia is fortunate to have clustered most of its manufacturing capabilities in 40 integrated industrial cities around the Kingdom.”

This grouping has led to various efficiency opportunities, including shared industrial infrastructure, common logistic solutions, and warehousing facilities.

Additionally, the deployment of smart city infrastructure and Internet of Things platforms in over 20 industrial cities enables real-time monitoring and management of various operational sectors.

These aspects include lighting, energy management, water usage and management, safety protocols, fire alarms, irrigation systems, environmental protection measures, and efficient transportation systems.

He elaborated on an innovative development within Jubail industrial city, citing a smart ambulance traffic system, “which reduced the average ambulance response time by 50 percent.”

Alkhorayef said: “These are examples of few ongoing applications, but we still have a long journey to go, and we seek technology partners to deploy new use cases in manufacturing and mining sites.” 

He added: “There are great opportunities for the future of Saudi industry and mining, but we realize that the path to realizing smart industrial cities opportunities begins with a clear vision and leadership drive.”

Moreover, the minister underscored that Saudi Arabia is well-prepared to embrace the concept of smart industrial cities and transform its factories and mining sites for the future.

The national industrial, mining, localization, and export strategies have “already set the course,” and the Kingdom is ready to implement these plans.

Alkhorayef concluded his speech by noting that Saudi Arabia has laid a solid foundation with many enablers, including the development of effective policies and regulations and investment in physical and digital infrastructure.

He added: “We have also launched various programs, such as the Future Factory program, which provides attractive financial incentives and comprehensive training initiatives.”


Saudi Arabia’s industrial output rises 10.4% in November: GASTAT 

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Saudi Arabia’s industrial output rises 10.4% in November: GASTAT 

RIYADH: Saudi Arabia’s industrial output rose at its fastest rate in months, climbing 10.4 percent year on year in November, supported by stronger manufacturing activity and higher oil production, official data showed. 

The Industrial Production Index increased to 114.4, up from 103.6 a year earlier, according to the General Authority for Statistics, though the index slipped 0.7 percent from October.

The latest figures highlight continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda.

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 10.4 percent in the IPI in November 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

The sub-index of mining and quarrying activity increased by 12.6 percent year on year in November, supported by Saudi Arabia’s decision to raise oil production to 10.1 million barrels per day, compared to 8.9 million bpd a year earlier. 

Manufacturing activity rose by 8.1 percent compared to November 2024, driven by a 14.5 percent increase in the production of coke and refined petroleum products. The manufacture of chemical products also recorded a 10.9 percent annual rise.

In contrast, the sub-index of electricity, gas, steam, and air conditioning supply declined by 4.3 percent year on year, while water supply, sewerage and waste management and remediation activities rose by 10.2 percent. 

On a month-on-month basis, the overall IPI fell by 0.7 percent in November. 

Mining and quarrying activity rose by 0.5 percent from October, while manufacturing activity edged up by 0.3 percent.

However, electricity, gas, steam, and air conditioning supply recorded a sharp monthly decline of 28.6 percent. Water supply, sewerage and waste management and remediation activities fell by 3.1 percent over the same period. 

Overall, the index of oil activities advanced by 12.9 percent year on year in November, while non-oil activities increased by 4.4 percent. 

Compared to October, oil activities rose by 0.4 percent, while non-oil activities declined by 3.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities, and waste management sectors.