Saudi Arabia’s Ministry of Industry and Mineral Resources signed a Memorandum of Understanding (MoU) with NEOM OXAGON, home to advanced and clean industries, to cooperate in the implementation of the “Future Factories Program.”
The program aims to build a strong technology ecosystem enabling a sustainable digital transformation of the manufacturing sector in the kingdom, remodeling 4,000 existing factories in order to enhance Saudi Arabia’s competitiveness on a global scale.
A key aspect of the MoU is the development of legislation, incentives, and enablers that will support the Future Factories Program to remove barriers to industrial innovation. 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.
The MoU will further set a framework for all parties to collaborate in driving a clean industry through the development and implementation of the Advanced and Clean Manufacturing Improvement Tool, which will allow organisations to assess their readiness for change and move toward advanced manufacturing systems and processes.
NEOM OXAGON: Transforming the future of manufacturing
According to Vishal Wanchoo, CEO of OXAGON, NEOM OXAGON has been continuously seeking new ways “to transform the future of manufacturing and create a sustainable industrial blueprint for the world”.
He said: “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. The Advanced and Clean Manufacturing Improvement Tool will play a critical role in supporting the local industry through this important transition.”
Meanwhile, Osama bin Abdulaziz Al-Zamil, Deputy Minister of Industry and Mineral Resources said: “This MoU lays the groundwork for implementing the Future of Factories Program by strategically unifying the efforts of the private and public sectors. Through this program, the Ministry aims to enhance the competitiveness of local industries and create significant job opportunities in key areas for the Saudi youth in line with the goals of Saudi Vision 2030.
“NEOM and OXAGON are pioneers. They lead the way in cutting edge technology and industry and are perfectly placed to inspire future industries and the next generation of talent in Saudi Arabia. Accordingly, 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’s CEO Nadhmi Al-Nasr said that the MoU represents “a major milestone in realising the signatories’ shared ambitions to sustainably future-proof industries and drive economic diversification across the country”.
He added: “NEOM OXAGON represents the future of advanced clean industries and will be powered by 100% renewable energy. Together with the Ministry of Industry and Mineral Resources and MODON – who we enjoy close relationships with – we will deploy our considerable collective resources, and talents, to develop such industries for the Kingdom and the world.”
As part of the MoU, MODON will provide the sites and selected factories to pilot the assessment. With NEOM OXAGON, a team of specialists will conduct a comprehensive analysis and outline the course of action that should be taken to carry out the Future Factories Program. The agreement is expected to enhance local content, localise strategic goods and promote national industries.
During the next several months, NEOM OXAGON and MODON will form a joint working group to develop an action plan to implement the programs as stipulated in the MoU. Efforts will be devoted to developing a policy program and work models geared toward developing future industries.
Initially announced in July 2022, the Future Factories Program aims to analyze factories’ operational readiness by assessing their Smart Industry Readiness Index (SIRI). Over 4,000 factories will be transformed into advanced and higher-quality industries through automation and enhanced efficiency, raising the global competitiveness of the sector.