The Kingdom of Saudi Arabia, which till recently was overly dependent on its energy trade-related revenues to keep its economy chugging, is now undergoing a transformation process called “Vision 2030.” The Gulf major is now steering decisively toward economic diversification, establishing a robust industrial base that aspires to compete on a global scale, while investing heavily in production and innovation, embodying an ambitious drive to build a modern economy grounded in technology, knowledge and smart infrastructure.
Non-profit organisation JEC Group said, “This transformation is materialising through an integrated industrial system that spans the Kingdom—from industrial cities to specialised clusters in key sectors such as aviation, automotive, food industries, mining and petrochemicals. With 40 industrial cities already developed, the Kingdom aims to operate 36,000 factories by 2035. These cities are not just production hubs; they are emerging economic centres strategically linked to local and global markets through a modern network of seaports, railways and advanced highways.”
At the heart of this industrial renaissance, lies strategic investment and solid infrastructure. Recognising the importance of economic diversification, the Kingdom has injected billions of riyals into establishing industrial cities and specialised clusters focused on enhancing value-added output and localising technologies.
“Among the flagship hubs are the Jubail and Yanbu industrial cities, which serve as global pillars of the petrochemical sector, reinforcing the Kingdom’s status as a global energy powerhouse. Meanwhile, Ras Al-Khair Industrial City, situated on the Gulf coast, has emerged as a vital centre for mining industries. It is home to the Ma’aden aluminium complex, one of the world’s largest and most comprehensive industrial sites, alongside the production of phosphate and other minerals,” JEC Group noted.
In the south, Jazan Industrial City is positioning itself as a key hub for heavy industries and energy-intensive activities, alongside agro-industrial and food processing sectors. King Abdullah Economic City (KAEC) also offers an integrated model that combines manufacturing, logistics and residential zones and houses one of the world’s most advanced ports—bolstering its role as a centre for global trade. In central Saudi Arabia, Sudair Industrial and Business City has emerged as another specialised industrial and logistics zone attracting investments in pharmaceuticals, food processing and light manufacturing—contributing to the development of the national supply chain.
Specialised Clusters Aligned With Future Industries
As part of “Vision 2030,” the Kingdom has launched several specialised industrial clusters that serve as strategic pillars for developing future industries. In Jeddah, the first aerospace industrial cluster—named “Aero Park One”, situated in the MODON Oasis, was established as an industrial city spanning 1.2 million square metres. This initiative is a collaboration between the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation. The cluster now aims to localise advanced technologies and create an attractive investment environment for the aviation industry through modern manufacturing facilities and advanced research and development centres focused on aircraft components, defence systems and space technologies.
Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, this initiative aligns with a broader vision to position the Kingdom as a regional and global hub for air transport, with a projected capacity of 30 million passengers and an annual cargo handling capacity of two million tonnes.
EV Hub And More
In King Abdullah Economic City, an electric vehicle manufacturing complex is becoming another strategic cluster. This project will establish the Kingdom as a key player in sustainable mobility by fostering partnerships with major global automakers to localise production, transfer cutting-edge technologies and develop integrated supply chains.
Shifting our attention to Jeddah, we have the Food Industry Cluster (the Kingdom’s first purpose-built food manufacturing complex). Spanning over 11 million square metres, the facility currently houses 75 factories with units reaching up to 107,000 square metres each and massive warehouses totalling 134,000 square metres. With foreign investments totalling USD 5.3 billion, the cluster aims to bolster food security, reduce reliance on imports and lower operating costs by 5% to 12%, by utilising integrated infrastructure and services. The goal is to develop over 800 factories by 2035, across 10 specialised sub-sectors, thereby positioning Saudi Arabia as a major player in the global food manufacturing and export landscape.
In April 2025, the Saudi Authority for Industrial Cities and Technology Zones (MODON) launched a dairy industrial cluster in Al-Kharj Industrial City, marking a significant step in advancing the Kingdom’s food security agenda. Covering an area of two million square metres, the cluster will establish a fully integrated ecosystem, encompassing dairy processing plants, packaging facilities, feed production farms and storage units, thereby becoming a beacon of sustainable, world-class production environment, while having a suite of investment incentives, including ready-built factories and shared cold and dry warehouses.
Al-Kharj currently accounts for more than 70% of the Kingdom’s dairy output, serving both domestic and regional markets. In 2024, the market was reportedly valued at USD 5.86 billion. Dairy exports achieved a value of USD 1.28 billion, while imports reached USD 2.37 billion – reaffirming Saudi Arabia’s growing self-sufficiency in the dairy sector.
Ports And Railways
Having a state-of-the-art connectivity network is a must to complete any industrial transformation. In Saudi’s case, while Jeddah Islamic Port remains the primary gateway for food imports and exports, King Abdullah Port specialises in serving high-value industries. In addition, Ras Al-Khair Port takes care of mineral exports, while Jazan Port supports the industrial city, apart from facilitating exports to African markets.
“Complementing these ports is the North-South Railway, a key infrastructure project linking mining regions with industrial cities and ports. In parallel, preparations are underway for the Saudi Land Bridge, one of the most ambitious rail projects in the region, set to connect the Red Sea with the Arabian Gulf—positioning the Kingdom as a vital corridor for regional and international trade,” JEC Group noted.
The Kingdom’s industrial transformation is quickly becoming a tangible, unfolding reality. From bustling factories in Jeddah to cutting-edge laboratories in aviation clusters, and from smart production lines in the automotive sector to sprawling industrial zones across the Kingdom, a knowledge-driven, innovation-led economy is taking root.
Backed by a well-coordinated ecosystem of advanced ports, modern transport networks and intelligent investment incentives, the Kingdom has continued to attract global capital, while fostering a competitive business environment that supports sustainable, diversified growth.