An inside look at the opportunity for OEMs in Saudi Arabia

Saudi Arabia Riyadh landscape at night. Image: Adobe Stock

The country has a pipeline of US$1.7 trillion in giga-projects and infrastructure investments, mostly through Vision 2030 – Saudi Arbia’s plan to transition to a sustainable and less oil-based economy.

Construction is at the heart of this vision, through building new cities, hotels, stadiums, entertainment venues and more.

“This isn’t just a building boom; it is a historic demand signal,” says Khalid Al-Homoud, EVP, NIDC in an exclusive interview with Construction Briefing.

The NIDC (National Industrial Development Center) is a Saudi agency whose role is to help facilitate this pipeline into reality. As Khalid Al-Homoud puts it, “to translate this massive demand into permanent industrial capacity.”

One of their focuses is to ensure that the workforce in Saudi Arbia learns and develops the skills needed to ensure a legacy of Saudi industrial experience but, concurrently, they are helping international companies to enter and then operate in the Kingdom.

“The opportunity for international OEMs has fundamentally evolved; it is no longer just about ‘selling’ to Saudi Arabia, but about building with us,” he says. He contends that there are three main growth opportunities: manufacturing excellence, technological integration and lifecycle economy.

By manufacturing excellence, he says that the country is moving beyond simple assembly toward the full-scale production of heavy equipment and precision components. When it comes to technological integration, he says, “We are actively seeking partners to integrate Industrial AI, robotics, and Fourth Industrial Revolution (4IR) technologies into our mining and construction ecosystems to drive unprecedented efficiency.”

Then last – but by no means least – is the lifecycle economy. “There is a significant gap in high-end service, maintenance, and remanufacturing networks today. We want OEMs to establish regional hubs here that don’t just serve the Middle East and Africa, but act as a strategic point for their entire global operations,” says Khalid Al-Homoud.

Entering the Kingdom

Khalid Al-Homoud, EVP, NIDC. Image: NIDC

While the opportunities in Saudi Arabia are clear, entering the market for the first time could be a daunting task – where would an OEM or a contractor even begin? What regulations and paperwork are needed? What is the right etiquette in doing business?

This is where NIDC comes in. Khalid Al-Homoud says that, “NIDC acts as the strategic bridge between global innovation and Saudi opportunity, guiding OEMs through a rigorous three-stage engagement process designed to de-risk their entry into the Kingdom.”

He outlines the three-stage process in more detail, saying, “It starts with demand mapping, where we provide partners with granular data on national and regional demand, revealing exactly where the long-term, bankable opportunities lie.

“We then move into ecosystem orchestration, functioning as a one-stop shop that smoothes the regulatory path, unlocks financial incentives, and secures industrial lands.

“Ultimately, we facilitate industrial matchmaking by connecting global giants with the best local manufacturers. This allows us to create ‘National Champions’ – strategic partnerships that combine world-class technology with deep local market access to build a sustainable industrial future.”

Looking to the future

Saudi Arabia will host the FIFA World Cup in 2034 and the World Expo in 2030. All of these major events require massive construction and infrastructure projects, as well as the numerous giga-projects that are underway that are separate from them.

Khalid Al-Homoud says that the most important capability Saudi Arabia must develop to remain competitive is industrial agility through intelligence.

“Global competitiveness is no longer won on labour costs alone; it is won on how fast you can adapt,” he says. “For Saudi Arabia, this means mastering the convergence of skilled human talent and advanced automation. We aren’t just building factories; we are building future factories’ that utilise 4IR technologies to drive higher quality, lower waste, and faster deployment.”

Cranes on the horizon at the Diriyah project in Saudi Arabia. Image: KHL

He adds that this will enable the country in the future to become a major global exporter of machinery and technology. For now, at least, the focus seems to be on welcoming the leading players of construction to come and participate in one of the 21st century’s biggest building booms.

Whether through giga-projects, global sporting events or long-term industrial policy, Saudi Arabia is signalling that its construction ambitions extend far beyond the current decade. For international OEMs and contractors, the message is increasingly clear: the Kingdom is not a destination for short-term project wins, but a market seeking long-term partners willing to invest, localise and grow alongside it.

More than 100 manufacturers and suppliers have signed up to exhibit at Heavy Equipment Connect 2026, a major new three-day trade show in Saudi Arabia. Taking place in Dammam, the show runs from 2-4 February 2026 and is being organised under the patronage of the NIDC.