Saudi Factories Pass Global SIRI Index for Transformation towards 4th Industrial Revolution

Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
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Saudi Factories Pass Global SIRI Index for Transformation towards 4th Industrial Revolution

Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)

Fifty-eight factories under the Saudi Authority for Industrial and Technology Zones (Modon) have passed the global Smart Industry Readiness Index (SIRI) that measures the level of facilities created to back the Fourth Industrial Revolution.

Saudi Arabia is moving towards harnessing the technologies of the Fourth Industrial Revolution, such as artificial intelligence, blockchain, self-driving cars, the Internet of Things, and smart cities, which reflects the government’s keenness to make the Kingdom a pioneer in this field.

Global developments

In a statement, Modon said the recent success is a culmination of efforts to keep pace with developments in the global industrial sector, and to ensure the transfer of the latest technologies that support the competitiveness of national products in local, regional and international markets.

It also falls within the Kingdom’s endeavor to enhance the national export system, in accordance with the best approved quality standards, and the initiatives of the National Industrial Development and Logistics Program (NIDLP).

Qusai Al-Abdul Karim, Director of Marketing and Corporate Communications Department, the official spokesperson for the authority, said Modon was keen on implementing the objectives of the national productivity program, as the main focus of its strategy for digital transformation.

Digital transformation

Al-Abdul Karim noted that the National Productivity Program was able to train 450 leaders from 76 factories on the concepts of the Fourth Industrial Revolution, in cooperation with two global technical partners - General Electric and McKinsey.

He added that in order to enhance the success of the National Productivity Initiative at the industrial sector level, the factories of the Royal Commission for Jubail and Yanbu have joined the program, where 63 digital transformation plans were delivered to more than 15 industrial sectors, enhancing support for the Modon strategy towards empowering the industry and contributing to increasing local content in integration with the public and private sectors in the Kingdom.

Since 2001, Modon has been providing industrial lands with integrated services. The Authority currently supervises 36 cities across the Kingdom that include more than 4,000 productive factories, in addition to private industrial complexes.

Modon is also working on developing and enhancing its investment system through quality programs, to keep pace with the aspirations of its partners in the private sector and to empower women, as well as small and medium enterprises.

Ready-made factories

The Saudi Authority for Industrial Cities and Technology Zones recently inaugurated 58 ready-made factories in support of small and medium enterprises, pioneers and entrepreneurs and to encourage women’s investments.

The move is part of the NIDLP initiatives to boost the contribution of the non-oil sector to the GDP and enrich the development base of the national economy.

The new factories cover an area of 700 square meters per unit.

Eng. Osama Al-Zamil, Modon CEO, said the project was the product of an effective partnership between the public and private sectors as part of Modon’s strategy to enable industry and contribute to increasing local content.

Small and medium enterprises

The General Authority for Small and Medium Enterprises (Monsha’at) announced in its report for the second quarter of 2002, which was issued on Sunday, that the number of SMEs exceeded 892,000 companies, an increase of 25.6 percent compared to the fourth quarter of 2021.

The report disclosed that the investment financing obtained by Saudi startups grew by 244 percent to reach SR2.19 billion (USD 584 million dollars) in the first half of 2022 on an annual basis.

The report stated that the percentage of establishments owned by women amounted to 45 percent of the total owners of start-up companies in the Kingdom, which is double the percentage achieved in 2017.

International conference

Meanwhile, the National Committee for the Saudi Steel Industry announced that the Second Saudi International Iron and Steel Conference would be organized on Sept. 12-14 at the Four Seasons Hotel in Riyadh, under the auspices of the Minister of Industry and Mineral Resources, Bandar Al-Khorayef, and the Minister of Investment, Khalid bin Abdulaziz Al-Falih.

About 50 speakers, including leaders from the steel industry, government officials and CEOs of giant projects, will participate in the conference, while more than 750 participants are expected the attend the conference, including international, regional and local media organizations.

The conference will address a number of challenges facing the Saudi iron and steel industry, in addition to global economic developments and their repercussions on the industry in Saudi Arabia and the world.



Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)
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Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)

Saudi Arabia's economic indicators show a growing ability to withstand external shocks, supported by an expanding non-oil sector that has continued to grow despite geopolitical tensions and disruptions to regional trade and energy routes.

Although gross domestic product (GDP) contracted by 3.8% year on year in the third quarter of 2026, the pace of decline slowed from a 4.7% contraction in the second quarter. Non-oil activities grew by 1.9%, accelerating from 0.9% in the previous quarter, while oil activities declined by 20.4%.

The significance of this performance is particularly evident given the exceptional circumstances of the third quarter, including disruptions to shipping through the Strait of Hormuz and the temporary shutdown of the East-West Pipeline in September.

Seasonally adjusted real GDP also grew by 1.3% compared with the second quarter, indicating an improvement in economic activity on a quarterly basis and reflecting the ability of certain sectors to continue expanding despite the sharp contraction in oil activities.

Annual and Quarterly Performance

According to data from the General Authority for Statistics, oil activities were the main driver of the GDP contraction, contributing a negative 4.7 percentage points, while government activities subtracted 0.4 percentage points.

By contrast, non-oil activities made a positive contribution of 1.1 percentage points, while net taxes on products added approximately 0.1 percentage points.

The data also showed an improvement in economic performance on a quarterly basis, with seasonally adjusted real GDP increasing by 1.3% in the third quarter compared with the second quarter of this year.

The growth was driven by a 5.7% increase in oil activities and a 0.6% rise in non-oil activities, while government activities declined by 1.2%.

Last month, the International Monetary Fund (IMF) noted that Saudi Arabia's available fiscal buffers and alternative oil export facilities were helping limit the economic damage caused by the war. The Fund considered the Kingdom better positioned than its Gulf peers to contain the fallout from the disruptions.

The IMF projected a strong recovery in the Saudi economy in 2027, forecasting growth of 7.9% amid expectations of a rebound in oil activities and improvements in trade and shipping.

These projections are particularly significant in light of Saudi government estimates that the economy will contract by 3.6% in 2026, with the projected budget deficit rising to 4.9% of GDP.

The contrasting performance of oil and non-oil activities underscores the importance of the structural transformation underway in the Saudi economy.

Non-oil activities are no longer merely an additional contributor to GDP. They are playing an increasingly important role in absorbing shocks and limiting the transmission of volatility in the energy sector to the broader economy.

Promising Sectors

Since the launch of Vision 2030, the Saudi government has pursued a clear strategy to diversify income sources and broaden the economic base by accelerating non-oil growth and developing promising sectors.

These include information technology and artificial intelligence, transportation and logistics, tourism, entertainment and quality of life, renewable energy and sustainability, as well as mining, manufacturing and other targeted industries.

These efforts have helped diversify sources of economic activity and strengthen the contribution of non-oil sectors, giving the Saudi economy greater flexibility to withstand external fluctuations by diversifying sources of value added and expanding the role of domestic businesses and the private sector.

Consumer Spending

In this context, Dr. Abdullah Al-Mir, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat that the contraction in the Saudi economy during the third quarter was not broad-based. Instead, it was concentrated largely in oil activities, which declined by approximately 20%.

Non-oil activities, meanwhile, continued to grow by 1.9%, playing an important role in cushioning the impact of the sharp decline in the oil sector.

According to Al-Mir, government spending and private sector activity are two key pillars of this resilience. Continued consumer spending by households and the private sector helps sustain domestic demand in trade, retail, hospitality, services and transportation, all labor-intensive activities directly linked to the non-oil economy.

He noted that the Riyad Bank Purchasing Managers' Index (PMI) reached 55.3 in September 2026, remaining in expansion territory for the sixth consecutive month, reflecting continued improvement in non-oil private sector activity.

Al-Mir explained that the importance of non-oil activities becomes even clearer when the energy sector slows. Sustained activity in services, entertainment and domestic tourism helps small and medium-sized enterprises remain operational, preserves local supply chains and supports employment opportunities.

He emphasized the importance of strengthening the resilience of the non-oil private sector against external volatility.

Al-Mir added that one of the most significant signs of Saudi Arabia's economic transformation was the increase in the share of non-oil activities to 57.3% of the economy, describing it as a historic level that reflects a structural shift in the country's economic composition.

He linked this transformation to the decline in the unemployment rate among Saudi nationals to 6.5%, highlighting the potential impact of expanding non-oil activity on the labor market.

Al-Mir noted that sectors such as tourism, entertainment, technology and manufacturing continued to expand despite geopolitical disruptions that affected oil production and shipping, further demonstrating the structural transformation of the Saudi economy.

"Non-oil activities have a greater capacity to withstand shocks, while sustained investment momentum associated with Vision 2030 provides an alternative source of growth," he said.


Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)
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Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)

Commercial franchise registrations in Saudi Arabia grew by 53% during the first nine months of 2026, reaching 6,484, compared with 4,227 at the end of 2025, according to the Ministry of Commerce.

The ministry said the food and beverage, fuel and petroleum, and fashion and apparel sectors accounted for the highest number of franchise registrations in the Kingdom.

It explained that the Commercial Franchise Law aims to regulate and develop the sector, enhance transparency, protect the rights of all parties involved, and create an attractive investment environment.

It also seeks to improve the quality of goods and services and support the sustainability, growth and expansion of commercial activities.


Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
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Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)

Saudi Arabia's benchmark Tadawul All Share Index (TASI) closed Sunday's session down 0.8% at 9,838 points, shedding 83 points amid total trading turnover of approximately SAR 3.1 billion.

The decline marked the index's second consecutive losing session after it fell 1% on Thursday to 9,922 points, ending a three-day winning streak that began with a 3.4% surge on Monday, followed by gains of 2.3% on Tuesday and 0.4% on Wednesday.

Despite Thursday's losses, the index ended last week up approximately 2.4%.

During Sunday's session, the benchmark fluctuated between a low of 9,789 points and a high of 9,923 points, moving further away from the 10,000-point threshold it had surpassed during trading last week.

Market Declines

Among heavyweight stocks, Al Rajhi Bank edged down approximately 0.1%, while ACWA Power fell around 3%.

Shares of Alujain and SPIMACO dropped approximately 10% each, while Saudi Reinsurance (Saudi Re) declined 8% and Jabal Omar Development fell around 7%.

Dr. Sulaiman Al Habib Medical Services Group and ZOUJAJ closed at SAR 214 and SAR 35.02, respectively, down 3% and 2% following the passing of their dividend eligibility dates.

Elm Leads Gains

In contrast, Elm shares surged approximately 9% following the release of the company's financial results.

SAHL rose around 4%, Sports Clubs Company gained more than 4%, and Watani Iron Steel advanced more than 2%.

BinDawood Holding and Sumou Real Estate each jumped 5%.