Digital Solutions Encouragement Initiative in Saudi Factories

The Digital Solutions Encouragement Initiative in Saudi Factories is one of the initiatives of the Ministry of Communications and Information Technology in collaboration with the Saudi Authority for Industrial Cities and Technology Zones “MODON”. It aims to empower digitalization in industrial facilities in the Kingdom of Saudi Arabia. Launched on May 9, 2020, it activated the memorandum of understanding signed in 2019 to incentivize the adoption of digital solutions, embrace Fourth Industrial Revolution technologies, and enhance production levels while contributing to reducing operational costs in the sector.

The Digital Solutions Encouragement Initiative in factories focuses on achieving several objectives, including: providing digital solutions for industrial facilities such as manufacturing system, inventory management, sales and purchases, and human and financial resources. It also aims to adopt open-source solutions and their services, localize technology industries, and develop the industrial sector in the Kingdom.

The Digital Solutions Encouragement Initiative in factories operates through several aspects, contributing to increasing the digitization rate in the Kingdom to reach 71 percent within five years of its launch, up from 30 percent. Additionally, it aims to reduce supply chain costs, enhance productivity, and reduce purchasing expenses alongside operational savings. The initiative also supports revenue growth, aims to achieve returns on investment, and keeps pace with the Fourth Industrial Revolution.