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.”


Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals

Updated 10 March 2026
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Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals

RIYADH: The King Salman Park Foundation has secured more than $3.8 billion in new private-sector commitments at the MIPIM 2026 real estate conference, including a landmark $3 billion fund backed by international investors to develop a major mixed-use district in the heart of Riyadh.

According to a press release, the announcements bring total committed investment in the 17.2 sq. kilometers urban regeneration project to over $5.3 billion across five major packages.

Launched in 2019 under Saudi Vision 2030, the development is designed to be the world’s largest city park and aims to boost green space, improve quality of life, and feature over 1 million trees and extensive leisure facilities.

A $3 billion metro-connected district

The largest of the two packages, designated Package 5, will see a consortium led by Kolaghassi Development Co. deliver a residential-led district with a total built-up area exceeding 1 million sq. meters. 

It will provide approximately 3,700 residential units, a K–12 school, around 300 hospitality keys and more than 100,000 sq m of Grade A office space alongside a wide variety of retail and dining offerings.

The development is supported by a Saudi-domiciled, Capital Market Authority-regulated fund managed by Mulkia Investment Co. that has attracted leading investors from the Kingdom and across the world.

Kolaghassi Development Co. will lead the project alongside Al Othaim Investment, one of the Kingdom’s real estate players, and RXR, a New York-headquartered real estate investor and operator.

“Securing investment of this scale, supported by international capital and expertise, is an important milestone for King Salman Park,” said George Tanasijevich, CEO of King Salman Park Foundation. 

$850 million cultural district package

In a separate announcement, the Foundation confirmed the award of Package 4 to a consortium led by Retal Urban Development Co., with support from a fund managed by SAB Invest.

The project has a total value exceeding $850 million and will host more than 600 residential units, over 140 hotel keys, and almost 50,000 sq m of Grade A office space, alongside curated retail and food and beverage experiences.

“This opportunity reflects the maturity of Saudi Arabia’s real estate investment landscape and our confidence in culture-led, mixed-use urban destinations as a driver of sustainable returns,” said Abdullah Al-Braikan, CEO and founder of Retal Urban Development Co.

Ali Al-Mansour, CEO of SAB Invest, said the fund structure brings together “long-term capital, experienced development partners, and a shared commitment to place-making excellence” while contributing to Riyadh’s cultural vibrancy and the Kingdom’s quality-of-life ambitions under Vision 2030.