At the forefront of Saudi Arabia’s ambitious Vision 2030 initiative aimed at transforming the Kingdom into a global hub for advanced manufacturing, KoçDigital has established itself as a key player in driving digital transformation across the region. At the recent launch of the Advanced Manufacturing and Production Center (AMPC) in Riyadh, KoçDigital showcased its commitment through its strategic partnership and innovation in AI-infused manufacturing technologies.
The launch event, which brought together prominent government officials and industry leaders, serves as a testament to Saudi Arabia’s efforts in fostering a collaborative environment for knowledge and technological transfer. Hosted by Khalil Bin Salamah, Minister of Industry and Mineral Resources, alongside Dr. Ahmad Zawawi, Deputy Minister, the AMPC is envisioned as pivotal in advancing the capabilities of the Kingdom’s manufacturing sector. This aligns seamlessly with the overarching goals of Vision 2030, which seek to diversify the economy away from oil dependency.
During the event, Evren Dereci, Managing Director of KoçDigital, participated in a panel discussion entitled “Global Learnings of Developing Lighthouses and How Capability Centers Can Support.” He emphasised the role of advanced manufacturing ecosystems as catalysts for sustainable growth and competitiveness on a global scale. “We are delivering AI-infused manufacturing projects across the Middle East to improve productivity and resilience,” Dereci remarked, underscoring the importance of developing customized digital solutions to enable manufacturers to become more competitive and sustainable.
KoçDigital, a subsidiary of KoçSistem, has been instrumental in deploying technologies such as operational analytics, digital twins, and supply chain planning to enhance the efficiency of production sites throughout Türkiye and the Middle East. The company’s strategy includes forging robust partnerships with key industrial enterprises and public institutions, which is crucial in establishing benchmarks against global standards.
Critically, the AMPC’s launch underlines Saudi Arabia’s broader endeavour in nurturing its semiconductor sector. The Kingdom is making significant strides to position itself as a competitive player in the global semiconductor landscape, with a focus on reducing reliance on foreign sources. The ambitious Alat project is central to these efforts, aiming to cultivate local semiconductor manufacturing capabilities and develop a talent pool in collaboration with the King Abdulaziz City for Science and Technology (KACST). As Talat Zaki Hafiz, a Saudi economist, noted, this leap into high-tech production, including electric vehicles and advanced drones, underscores the substantial economic and industrial potential of semiconductors within Vision 2030’s remit.
Moreover, Saudi Arabia’s manufacturing landscape is evolving rapidly, as evidenced by recent data highlighting a 12.4% rise in manufacturing activity, contributing to an overall 5% growth in the industrial sector. The government reports a total industrial investment of approximately 38.6 billion SAR (about $10.2 billion) in 2024 alone, indicating a commitment to upgrading factories with automation and smart technology.
Broader initiatives, such as the establishment of special economic zones, aim to attract foreign investments and technology transfers. Projects like Noor City and King Abdullah Economic City are designed to foster innovation in sectors like aerospace and automotive, offering streamlined regulatory frameworks and incentives for investment.
The urgency of these developments is clearly illustrated by global supply chain disruptions, which have emphasised vulnerabilities among reliant economies. Saudi Arabia’s strategy not only aims to secure its supply chains but also aspires to position the Kingdom as a leading exporter of high-tech components in the global market.
As the AMPC inauguration marks a significant milestone in Saudi Arabia’s industrial evolution, it heralds a new era of global manufacturing synergy. The collaboration between local and international entities, such as KoçDigital’s pivotal role, highlights a united vision towards fostering a sustainable and advanced manufacturing ecosystem, rooted in innovation and resilience.
In this context, the upcoming World Advanced Manufacturing & Logistics Summit (WAM) in November 2024 will further promote these objectives, offering a platform for dialogue between policymakers, industry leaders, and innovators. The convergence of more than 10,000 corporate buyers at the event reflects the Kingdom’s determination to leverage international expertise and foster groundbreaking partnerships.
The developments encapsulated in these initiatives signal Saudi Arabia’s relentless pursuit of economic diversification and its ambitious journey toward becoming a global leader in advanced manufacturing and logistics.
Reference Map
- KocDigital’s collaboration with Vision 2030 and AI technologies.
- Saudi Arabia’s semiconductor initiatives and related economic strategies.
- The growth and infrastructure investments in the Saudi manufacturing sector.
- Details of the World Advanced Manufacturing & Logistics Summit.
- Overall industrial growth metrics and targeted initiatives within Saudi Arabia.
Source: Noah Wire Services
