Automation in Saudi Arabia: An Industrial Transformation Driving Efficiency and a More Sustainable Economy

Business Tech 11-12-2025 | 12:59

Automation in Saudi Arabia: An Industrial Transformation Driving Efficiency and a More Sustainable Economy

This shift reflects a deliberate strategy aimed at deepening the role of technology across manufacturing sectors, cutting operational costs, and strengthening the global competitiveness of Saudi industry.
Automation in Saudi Arabia: An Industrial Transformation Driving Efficiency and a More Sustainable Economy
The Saudi Arabia pavilion is seen at Expo 2020 in Dubai, United Arab Emirates, Monday, Oct. 18, 2021. Saudi Arabia’s crown prince wants businesses, their employees and their families to move to the kingdom. The once ultraconservative capital, Riyadh, now promises a lifestyle where concerts, movie theaters, world class sporting events and deal-making are in abundance. The Expo pavilion represents one part of the charm offensive. (AP Photo/Jon Gambrell) 1 of 11 | The Saudi Arabia pavilion is seen at Expo 2020 in Dubai, United Arab Emirates, Monday, Oct. 18, 2021. Saudi Arabia’s crown prince wants businesses, their employees and their families to move to the kingdom. The once ultraconservative capital, Riyadh, now promises a lifestyle where concerts, movie theaters, world class sporting events and deal-making are in abundance. The Expo pavilion represents one part of the charm offensive. (AP Photo/Jon Gambrell)
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In recent years, Saudi Arabia has seen a sharp uptick in the deployment of automation and industrial robotics, in line with its broader push for industrial transformation and higher production efficiency. This shift reflects a deliberate strategy aimed at deepening the role of advanced technology across manufacturing sectors, cutting operational costs, and strengthening the global competitiveness of Saudi industry.

According to data from companies participating in the FABEX metalworking and machinery exhibition in Riyadh, demand for industrial robots in the Saudi market continues to grow at a steady pace, with annual expansion estimated between 20% and 30%. Current projections suggest that the share of industrial robots—now ranging between 8% and 12%—is expected to climb to nearly 40% within the next decade. This anticipated surge is driven largely by factories accelerating their shift toward automation to reduce dependence on labor, particularly in the metals, food, and operational materials sectors.

Samir Fouad, general manager of Maknana, a company specializing in industrial automation solutions, noted that this trajectory signals rising awareness among Saudi manufacturers of the strategic value of automation. He explained that industrial robots have become a “smart economic choice,” given their ability to boost productivity, lower long-term operating costs, and maintain extended work cycles with minimal error rates.

Fouad noted that the entry of Asian manufacturers into the Saudi market has pushed robot prices down–some models now start at around 150,000 riyals, lowering the barrier for small and medium-sized firms. Although Maknana currently imports its robots, the company plans to move toward local production, allocating between 5 and 10 million riyals in annual investment. Since early 2025, the company’s sales have reached roughly 25 million riyals, a sign of growing acceptance of automation despite the continued need for industrial awareness and training around its advantages.

For his part, Muhannad Al-Hamawi, manager of the Jeddah branch of Beta Industrial Equipment, said the Saudi industrial equipment market remains broadly steady, with annual investments of 20–30 million riyals directed toward expansion and modernization. The company’s market share in the Kingdom stands between 20% and 25%. Al-Hamawi highlighted energy, mining, and factory operations as the sectors generating the strongest demand, adding that the market relies heavily on Chinese equipment due to its quality, warranty coverage, and competitive pricing.

Despite this momentum, Al-Hamawi pointed to a degree of economic stagnation as the main factor slowing growth, though he stresses that the Saudi market remains the most stable in the region.

At the same time, Saudi Arabia’s steel sector is registering steady growth, accompanied by wider adoption of automated machinery in forming and manufacturing operations. Majid Al-Nafie, General Manager of Al-Nafie Steel and Metal Industries, says market demand remains stable, with expectations of an uptick by early 2026. The projected increase is tied to large-scale developments such as King Salman Park, Qiddiya, Diriyah, Jeddah Central, and the Red Sea projects. He estimates the value of the Saudi steel market at roughly 6 million tons annually, while Al-Nafie’s production capacity reaches 45,000 tons per year. In 2025, the company boosted its investments by about 54 million riyals to upgrade machinery and launched new production lines—an indicator of rising confidence in the future of the automated industrial sector.

Digital transformation expert Ramez Al-Qara told An-Nahar that automation is a core pillar of modern industry.  He stressed that industrial robots will significantly streamline production thanks to their ability to operate more efficiently and for longer periods than human labor, without interruptions or notable errors, particularly in repetitive, precision-focused tasks.

Al-Qara added that automation is not a passing phase, but a foundational step toward the full integration of artificial intelligence. Once robots are firmly embedded in factory operations, it becomes far easier to introduce smart systems capable of managing these robots and making operational decisions previously handled by humans.

Ultimately, the acceleration of automation in Saudi Arabia reflects more than a push to boost factory productivity—it signals a broader strategic transformation across the Kingdom’s industrial and economic landscape. Backed by expanding government support, rising investments in technology, and infrastructure prepared to incorporate AI-driven systems, Saudi Arabia is positioning itself to emerge as one of the region’s leading smart industrial hubs in the coming decade.


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