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Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
    Tabuk - Asharq Al-Awsat 
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Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed a Memorandum of Understanding (MoU) with OXAGON, home to advanced and clean industries in NEOM, to cooperate in the implementation of the Future Factories Program.  

The Future Factories Program aims to analyze factories' operational readiness by assessing their Smart Industry Readiness Index (SIRI) and transform over 4,000 factories into advanced and higher-quality industries through automation and enhanced efficiency, raising the sector's global competitiveness.  

The MoU aims to develop legislation, incentives, and enablers to support the Program to remove barriers to industrial innovation in the Kingdom.  

Experts from all parties will assess the industry's readiness and explore ways to integrate advanced manufacturing technologies, such as artificial intelligence, 3D printing, and the Internet of Things (IoT), into manufacturing industries.  

Deputy Minister of Industry and Mineral Resources Osama al-Zamil said that the agreement laid the groundwork for implementing the Future of Factories.  

Zamil explained that the Ministry seeks to enhance the competitiveness of local industries and create significant job opportunities in critical areas for the Saudi youth in line with the goals of Vision 2030.  

"We are promoting local manufacturing, enhancing current factories according to world-class standards, and establishing state-of-the-art manufacturing facilities that guarantee higher efficiency and increased productivity." 

NEOM and OXAGON are pioneers leading the way in cutting-edge technology and industry and are ideally placed to inspire future industries and the next generation of talent in Saudi Arabia.  

NEOM CEO Nadhmi al-Nasr said the memorandum represents a significant milestone in realizing the signatories' shared ambitions to sustainably future-proof industries and drive economic diversification across the country.  

OXAGON represents the future of advanced clean industries and will be powered by 100 percent renewable energy.  

Nasr explained: "Together with the Ministry of Industry and Mineral Resources and MODON – whom we enjoy close relationships with – we will deploy our considerable collective resources and talents to develop such industries for the Kingdom and the world."  

OXAGON CEO Vishal Wanchoo sressed that OXAGON is continuously seeking new ways to transform the future of manufacturing and create a sustainable industrial blueprint for the world.  

"By mixing the state-of-the-art approaches from Industry 4.0, utilization of solely renewable energy and circular economy principles, OXAGON will enable industries of the future to avoid environmental degradation and preserve efficiency and profitability," said Wanchoo.  

He noted that the Advanced and Clean Manufacturing Improvement Tool would play a critical role in supporting the local industry through this important transition.  

During the next several months, OXAGON and MODON will form a joint working group to develop an action plan to implement the programs.  

Efforts will be devoted to developing a policy program and work models to create future industries. 

Launched in November, OXAGON is a new paradigm where technology, industry, and people come together harmoniously with nature.  

OXAGON will be home to NEOM's advanced and clean industries, a research and innovation hub, an automated and integrated port, a supply chain network, and several thriving communities. 

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.