Saudi Arabia targets 36,000 factories by 2035: Deputy Industry Minister

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Khalil bin Salamah stated that Saudi Arabia’s primary target for the industrial sector by 2035 is to reach 36,000 factories with a local output expected to reach SAR 1.4 trillion, double the sector’s cumulative growth over the past 70 years.

Speaking at the 2026 Budget Forum, he said that the growth comes at a time of major structural reforms, the phase-out of liquid fuels in favor of electricity and gas, energy price reforms, carbon-reduction initiatives, and preparations for global competitiveness beyond 2030.

The ministry has worked in cooperation with several government entities to design the program based on key principles that include the gradual replacement of liquid fuels, neutralizing the financial impact on the sector until alternatives are available, and upgrading old equipment to improve energy efficiency - aimed at achieving a positive impact on both consumers and citizens, said Salamah.

He added that the Industrial Sector Competitiveness Program targets 2,400 factories through immediate, developmental, and enabling initiatives.

These include reducing carbon emissions by 22 million tons annually by 2030, protecting the baseline of current and targeted factories contributing SAR 523 billion, and training 20,000 workers in the sector.

The program also aims to displace 130,000 barrels of oil equivalent per day from the sector, inject SAR 36 billion in indirect investments - SAR 6 billion of which will directly achieve the program’s targets - and generate an estimated government return of up to four times the capital investments.