Rafid initiative drives innovation in Saudi industry via academic partnerships

Led by the Ministry of Industry and Mineral Resources, this comprehensive effort aims to enhance the Kingdom’s advanced national industry by engaging local universities and technical colleges to align with the National Industrial Strategy. SPA
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Updated 17 September 2024
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Rafid initiative drives innovation in Saudi industry via academic partnerships

  • Effort aims to enhance the Kingdom’s advanced national industry by engaging local universities and technical colleges
  • Rafid program focuses on advancing digital manufacturing capabilities

JEDDAH: Saudi Arabia’s industrial sector is poised for significant growth through the Rafid program, a strategic initiative that collaborates with academic institutions to spearhead innovation and research in manufacturing.

Led by the Ministry of Industry and Mineral Resources, this comprehensive effort aims to enhance the Kingdom’s advanced national industry by engaging local universities and technical colleges to align with the National Industrial Strategy.

Anchored in the principles of the Fourth Industrial Revolution, the Rafid program focuses on advancing digital manufacturing capabilities. It leverages cutting-edge technologies such as 3D printing, design and engineering analysis, and simulation to drive progress.

Saudi Arabia envisions expanding its factory count to 36,000 by 2035, with 4,000 of these being fully automated, thereby transforming the production landscape. The incorporation of advanced technologies—including artificial intelligence, 3D printing, and robotics—positions the Kingdom’s industries to emerge as global leaders in this industrial revolution.

“We have launched the Rafid program, aiming to establish strategic partnerships with leading Saudi universities and set up innovative factories on their campuses,” Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef wrote in a post on his X account.

The minister highlighted that the Rafid program is dedicated to leveraging research outcomes and innovations, particularly in key sectors outlined in the country’s national industrial strategy. The program will support various initiatives and accelerated adoption of Fourth Industrial Revolution technologies. This includes the Future Factories Program, which aims to establish a robust technology ecosystem and modernize the manufacturing sector.

The launch event was attended by prominent figures from the industrial and mining sectors, university presidents, and representatives from private sector companies.

In his address at the official launch, Alkhorayef underscored the critical role of advancing the national industry in achieving Vision 2030 and fostering a diverse and sustainable economy. He stressed the need for technological progress, innovation, and the development of human resources, emphasizing that Rafid is a strategic solution to meet these challenges.

During the event, several pivotal agreements and memorandums of understanding were signed under the Rafid program. Among these was a partnership between Princess Nourah bint Abdulrahman University and Autonomous Technologies, aimed at advancing drone manufacturing capabilities. King Abdulaziz University also forged a deal with Haven Scientific to establish an advanced medical products factory. Meanwhile, Qassim University entered into a memorandum of understanding with United Defense to develop an advanced drone systems manufacturing facility. Additionally, Umm Al-Qura University, represented by Wadi Makkah Technology, signed an agreement with Abdullah Abuljadayel Company to set up a food production plant.

The agreements outlined the creation of four innovative factories at these local universities. Specifically, Princess Nourah bint Abdulrahman University will host a drone manufacturing plant, Qassim University will develop an advanced drone systems facility, King Abdulaziz University will establish a medical products factory, and Umm Al-Qura University will set up a food production plant.

The event also announced the allocation of significant industrial lands. King Faisal University was granted 1.4 million sq. meters for food and environmental industries, while Umm Al-Qura University received 1.5 million sq. meters for industries related to pilgrimage.

The launch of the Rafid program was attended by an array of distinguished guests, including Mohammed Al Hayaza, President of Al-Faisal University; Khalid Al-Mudaifer, Deputy Minister of Industry and Mineral Resources for Mining Affairs; Abdullah bin Ali Al-Ahmari, Assistant Minister of Industry and Mineral Resources for Planning and Development; Inas Al-Issa, president of Princess Nourah bint Abdulrahman University; Bassam bin Abdullah Al-Bassam, secretary-general of the Council of University Affairs; Majed Rafed Al-Argoubi, CEO of the Saudi Authority for Industrial Cities and Technology Zones; and Muhammad bin Fahd Al-Sharikh, president of Qassim University.

Officials from the signing entities were also present, underscoring the collaborative effort driving the Rafid program forward.


Oman’s central bank approves Shariah-compliant framework for finance, leasing firms

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Oman’s central bank approves Shariah-compliant framework for finance, leasing firms

JEDDAH: The Central Bank of Oman has approved a new Shariah-compliant regulatory framework for finance and financial leasing companies, reinforcing the country’ efforts to expand Islamic banking and attract fresh investment.

The approval was granted during the CBO’s sixth board meeting of the year, held on Dec. 29 at its headquarters in Muscat’s Commercial District, according to an official statement.

The move comes as Oman’s Islamic finance sector continues to gain momentum. In September, Fitch Ratings forecast that the country’s Islamic finance industry would surpass $40 billion between the second half of 2025 and 2026, supported by regulatory reforms and growing demand for Shariah-compliant financial products.

Fitch identified the newly approved framework as a key growth driver, noting that clearer regulations and stronger oversight are expected to enhance investor confidence and attract additional capital to the sector.

The broader Gulf region is also witnessing robust growth in Islamic finance. In the UAE, the industry’s assets exceeded $285 billion by the end of the first quarter of 2025, fueled by strong demand and an expanding sukuk market, Fitch said.

“During the meeting, the board approved the regulatory framework for finance and financial leasing companies that are compliant with the provisions of Islamic Sharia,” the CBO said in its statement.

The board also approved the CBO’s 2026 annual budget, along with those of the Banking Deposits Protection Scheme and the Oman Credit and Financial Information Center, known as Mala’a. In addition, several agenda items and reports were reviewed and corresponding decisions were taken.

Oman’s banking system comprises both conventional and Islamic institutions. Islamic banking services are offered through standalone banks as well as Islamic windows within conventional local and foreign banks licensed in the country.

The foundations for Islamic banking were laid in May 2011, when the CBO issued preliminary licensing guidelines allowing Islamic banks and windows to operate alongside conventional institutions. This initiative was formalized in December 2012 through a royal decree amending the Banking Law, mandating the establishment of Shariah supervisory boards and authorizing the CBO to create a central High Shariah Supervisory Authority.

That same year, the CBO introduced the Islamic Banking Regulatory Framework, alongside regulations governing Hawala settlements and safeguard accounts.

Although Oman remains the smallest Islamic finance market in the Gulf Cooperation Council, it continues to record double-digit growth in Islamic banking assets and sukuk issuance. Fitch estimated the sector’s size at $36 billion as of the end of August 2025, with Islamic banking assets accounting for nearly two-thirds of the total.