- In accordance with KSA’s Vision 2030, OXAGON, the Ministry of Industry and Mineral Resources, and the Saudi Authority for Industrial Cities and Technology Zones MODON will work together to develop the Future Factories Program.
- The development of clean manufacturing technologies including artificial intelligence, 3D printing, the Internet of Things (IoT), and intelligent robots will be a joint effort by the three organizations.
- Additionally, the parties will work together to create an “Advanced and Clean Manufacturing Improvement Tool” to assess the readiness of various businesses for Industry 4.0.
- In order to modernize manufacturing in the Kingdom, it is anticipated that this MoU will increase local content, localize strategic commodities, support national industries, and use a circular economy strategy.
NEOM, Kingdom of Saudi Arabia, [16 December 2022]: Under the direction of His Excellency Bandar bin Ibrahim AlKhorayef, Minister for Industry and Mineral Resources, the Saudi Authority for Industrial Cities and Technology Zones (“MODON”) and OXAGON, which is home to advanced and clean industries in NEOM, have signed a Memorandum of Understanding (MoU) to work together on the implementation of the “Future Factories Program.” The program’s objective is to create a robust technological ecosystem that will enable a long-term digital transformation of the Kingdom’s manufacturing industry, rebuilding 4,000 existing facilities to increase the Kingdom’s competitiveness on a worldwide scale.
The creation of regulations, incentives, and enablers that will support the Future Factories Program and lower obstacles to industrial innovation in the Kingdom is a crucial component of the MoU. The readiness of the sector will be evaluated, and experts from all sides will look at how to incorporate advanced manufacturing technologies like artificial intelligence, 3D printing, and the Internet of Things (IoT) into manufacturing businesses.
The Advanced and Clean Manufacturing Improvement Tool, which enables firms to evaluate their readiness for change and move towards advanced manufacturing systems and processes, is another framework established by the MoU for all parties to work together in advancing a clean industry.
For his part, 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.”
At the signing ceremony, Nadhmi Al-Nasr, CEO of NEOM, said: “NEOM’s objectives are in line with the Kingdom’s Vision 2030 goals. This memorandum represents a major milestone in realizing the signatories’ shared ambitions to sustainably future-proof industries and drive economic diversification across the country. 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.”
In accordance with the MoU, MODON will provide the venues and chosen factories for the assessment’s pilot. A group of experts will use OXAGON to conduct a thorough analysis and propose the steps that should be taken to implement the Future Factories Program. The agreement is predicted to strengthen regional industries, localize strategic commodities, and encourage local content.
Vishal Wanchoo, CEO of OXAGON, said: “OXAGON is continuously seeking new ways to transform the future of manufacturing and create a sustainable industrial blueprint for the world. 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.”
OXAGON and MODON will create a collaborative working group over the coming months to create an implementation strategy for the projects outlined in the Memorandum of Understanding. A policy program and work paradigms targeted at promoting future industries will be developed.
The Future Manufacturers Program, which was first introduced in July 2022, aims to evaluate factories’ operational readiness by evaluating their Smart Industry Readiness Index (SIRI). Through automation and improved efficiency, over 4,000 factories will be converted into sophisticated and higher-quality industries, increasing the sector’s competitiveness on a global scale.
OXAGON, which was introduced in November 2021, is a brand-new paradigm where people, businesses, and technology coexist peacefully with nature. NEOM’s sophisticated and clean industries, a research and innovation center, an automated and integrated port, a supply chain network, and multiple thriving neighborhoods will all be found in OXAGON, in contrast to traditional industrial cities of the past.
