Saudi Arabia Boosts Automation Grants for Factories

Saudi Arabia has expanded automation and digitization support for manufacturing factories, including small and medium-sized enterprises (SMEs) operating in the Kingdom's industrial cities. The Future Factories Program now offers non-repayable grants covering up to 80% of basic digitization and automation project costs, with a maximum of SAR 300,000

The foundational grants target factories taking their first steps into digital transformation, funding solutions such as process digitization, planning systems (ERP/MES), communication networks, production line control, material-handling machinery, and packaging systems.

For larger upgrades, an Advanced Transformation grant track supports comprehensive Industry 4.0 projects — including artificial intelligence, robotics, digital twin technology, and full industrial IoT integration — covering 25% of total transformation cost, capped at SAR 10,000,000

Wider industrial incentives

Separately, a Standard Incentives Program for the industrial sector, launched in January 2025, allocates SAR 10 billion in incentives covering up to 35% of a project's initial investment, capped at SAR 50,000,000 Half the incentive is disbursed during construction and half during production, and the service is listed as free of government service fees for eligible citizens, businesses, companies, and SMEs.

Eligibility generally requires factories to be licensed, active, and productive, to use commercially proven technologies, and to submit an economic feasibility study with reasonable capital and operating cost projections. A dedicated Tanafusiya Accelerator Track offers financing and incentives for automation, digitization, and energy-efficiency projects, with loan grace periods of up to 24 months and minimum tenors of seven years.

The measures aim to help local manufacturers modernize operations and cut costs — a boost for the industrial base that supports jobs and supply chains across communities in Riyadh, Jeddah, and beyond. Fast-track projects can receive financing decisions in about eight weeks.

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