A decade of localisation and innovation: navigating Saudi Arabia’s industrial future

As Saudi Arabia continues its ambitious journey towards economic diversification under the framework of Vision 2030, localisation and innovation have emerged as critical pillars for industrial growth as they are essential mechanisms for achieving a self-reliant economy and long-term sustainable development.

The Kingdom’s visionary leadership has continuously advanced localisation through robust governance and a commitment to improving the ease of doing business. For manufacturers, localisation efforts have evolved from fulfilling mandatory requirements to becoming a crucial engine for both short-term success and long-term growth.

A journey of localisation & commitment

Emerson’s journey in Saudi Arabia began over a decade ago with the establishment of its first manufacturing facility in Jubail in 2011. This marked the start of a long-term commitment to the Kingdom, one that has evolved to encompass a wide range of localisation initiatives aimed at supporting Saudi Arabia’s economic development.

Today, our local manufacturing programme covers Control Systems Staging, Engineering & Integration, Manufacturing of Measurement Instrumentation, Control Valves, Pressure Relief Valves, and the assembly of Solenoid Valves, Electrical Lighting and industrial enclosures.

A key pillar of our localisation strategy is investing in the growth of local talent. We have made notable progress in building a skilled local workforce capable of advancing the Kingdom's industrial goals. Our initiatives to collaborate with local educational institutions through specialised internship and graduate programmes have further strengthened our talent pipeline, ensuring Saudi nationals lead the way in our operations.

Diversity and inclusion are integral to this strategy, with a focus on fostering diverse talent pipelines and creating more opportunities for women in manufacturing roles. Mentorship programmes and skill-building initiatives aimed at supporting female talent are driving greater representation at all levels of the workforce. These efforts align with Vision 2030’s goal to boost women’s participation in the workforce and demonstrate the company’s commitment to a diverse and inclusive workplace.

The development of facilities like the SPARK hub marks yet another milestone in Emerson’s decade-long localisation journey. These state-of-the-art facilities are not just expansions of manufacturing capabilities; they symbolise a commitment to Saudi Arabia’s industrial future. They serve as cornerstones for upskilling local employees, fostering a culture of continuous learning, and supporting the Kingdom’s broader goals of economic diversification and technological innovation.

Charting a path to Vision 2030

As Saudi Arabia advances toward its Vision 2030 goals, the journey of localisation and innovation has become a critical component of the nation's industrial development. The evolution of companies operating in the Kingdom illustrates how establishing a strong local presence and building long-term partnerships can lay the groundwork for deeper engagement and sustained economic growth.

For instance, the presence of local manufacturing and assembly operations that cover entire technology portfolios enhances supply chain resilience, supports job creation, and contributes to the local economy. These efforts demonstrate how strategic localisation can provide high-quality products tailored to the specific needs of Saudi industries while also fostering economic self-reliance.

Strategic localisation: building a resilient industrial base

Localisation of supply chains and manufacturing processes is pivotal to enhancing economic resilience and ensuring adaptability in an increasingly complex global environment. Saudi Arabia’s Vision 2030 underscores the importance of reducing reliance on imports and nurturing domestic capabilities to create a more self-sufficient economy. Programmes such as IKTVA (In-Kingdom Total Value Add) and Nusaned, aimed at boosting local content and supporting industrialisation efforts, support companies to embed localisation into the very fabric of its operations, focusing on developing local supply chains and enhancing domestic manufacturing capabilities.

By sourcing critical components such as pressure-retained castings for control valves from within Saudi Arabia, Emerson has aligned its manufacturing processes with the 'Made in KSA' initiative. This move not only supports local industries but also significantly reduces transportation costs, carbon footprint, and lead times. Additionally, collaboration with Saudi-based fabricators to produce control systems cabinets has further strengthened the local manufacturing sector, fostering greater economic self-reliance.

Emerson’s localisation efforts are also evident in its broader portfolio. The company has progressively localised various automation technologies and solutions, ensuring that most of its products and technologies are tailored to meet the specific needs of the Saudi market. This approach is not just about manufacturing; it’s about creating an integrated ecosystem of technologies that support our industrial customers’ business goals around Safety, Reliability and Efficiency and contribute to the Kingdom’s industrial ambitions.

Innovation as a catalyst for industrial growth

Innovation is the driving force behind industrial growth and is particularly vital for achieving the ambitious objectives set out in Vision 2030. For Saudi Arabia to compete on the global stage, it had to embrace advanced manufacturing practices and sustainable technologies. The role of innovation in this transformation was marked by the adoption of cutting-edge technologies and a commitment to sustainability.

The Emerson Collaboration Center is a prime example of how innovation can be harnessed to support local industry growth while advancing broader economic and environmental goals through research and development.

Designed to align with the Kingdom’s net-zero emission targets, the SPARK facility has been built with sustainability as a key design principle: efforts include using energy-efficient systems and incorporating renewable energy sources, such as rooftop solar panels, in facilities to minimise electricity consumption. By focusing on these practices, the company aims to contribute to a more sustainable industrial ecosystem in Saudi Arabia while supporting the broader goals of environmental responsibility.

The company’s broader focus on improving its customers' sustainability performance is evident in its strategic collaborations with key Saudi industrial operators such as Saudi Aramco, SABIC, SWCC, and Ma’aden. These partnerships emphasise digitalisation, operational excellence, and sustainability, further demonstrating how innovation can drive both industrial growth and environmental stewardship.

Looking ahead, the focus on innovation, collaboration, and sustainability will continue to play a pivotal role in driving technological advancement and supporting Saudi Arabia’s aspirations for a diversified and resilient economy. The experiences of the past decade offer valuable lessons on how global expertise, when integrated with local insights, can help shape a dynamic and prosperous future for the Kingdom’s industrial sector.