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 the primary target for the industrial sector by 2035 is to reach 36,000 factories with a local output valued at SAR 1.4 trillion, a leap equivalent to double what has been achieved over the past 70 years.
 

During his participation in the 2026 Budget Forum, the official explained that this growth comes at a time of major transformations, most notably structural reforms, the phase-out of liquid fuels and their replacement with electricity and gas, the energy price reform program, carbon emissions reduction, and preparing the sector for global competitiveness beyond 2030.
 

The ministry has worked in cooperation with several government entities in formulating 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 solutions. These include reducing carbon emissions by 22 million tons annually by 2030, protecting the baseline of current and targeted factories contributing SAR 523 billion, training 20,000 employees currently working in the sector, displacing 130,000 barrels of oil equivalent per day from the sector, and injecting SAR 36 billion in indirect investments—SAR 6 billion of which will directly achieve the program’s targets—along with generating an estimated government return of up to four times the capital investments.