Dhahran, Saudi Arabia — Schneider Electric is set to open a new 20,000-square-meter factory in King Salman Energy Park (SPARK) this October, marking a significant milestone in its Saudi expansion strategy. According to regional CEO Mohamed Shaheen, the company aims to increase its production lines in the Kingdom from 12 to 32 by 2030.

The SPARK facility complements existing operations in Riyadh and Dammam. It aligns with Schneider’s goal to strengthen Saudi Arabia as a regional manufacturing and export base. The Kingdom now hosts the company’s regional headquarters, managing business across Bahrain, Pakistan, and Yemen.

Shaheen described Saudi Arabia as the group’s second most important market globally after the United States. This strategic emphasis is evident in Schneider’s decision to shift its regional distribution center from Jebel Ali in the UAE to Riyadh in June 2023. Currently, 14–20% of local output is exported to neighboring countries.

SPARK Factory Underscores Vision 2030 Localization Drive

In the past five years, Schneider Electric’s €50 million investment in Saudi Arabia has focused on manufacturing capacity and workforce development. Since 2020, the company has launched 12 new product lines and plans 20 more by 2030, supporting Vision 2030’s push for industrial self-sufficiency.

The company’s Saudization efforts are also advancing. It hires between 30 and 50 Saudi engineers annually, 60% of whom are women. Saudization has reached 100% among recent graduates. Overall, local workforce representation is 45%, underscoring the firm’s commitment to national employment goals.

Moreover, the SPARK facility will serve domestic and export markets strategically located within one of Saudi Arabia’s flagship industrial zones. Schneider’s acquisition of Lauritz Knudsen for €1.4 billion in 2020 further expanded its low-voltage solutions portfolio. This integration strengthens its position in energy automation and reinforces Saudi Arabia’s role in the company’s regional and global operations.

 

 

THE SAUDI STANDARD’S VIEW: Schneider Electric Expansion Validates Saudi Industrial Depth

Schneider Electric’s decision to triple its production lines in Saudi Arabia by 2030—anchored by a new factory in SPARK—underscores the Kingdom’s industrial competitiveness, talent readiness, and growing global role in smart energy manufacturing.

  • The SPARK facility, opening this October, demonstrates investor confidence in Saudi Arabia’s industrial infrastructure and the strategic appeal of energy-focused zones such as King Salman Energy City.
  • Schneider’s shift of its regional hub from the UAE to Riyadh reflects the Kingdom’s success in becoming the operational nucleus for international firms seeking regional influence and production scale.
  • The firm’s commitment to 20 new production lines and a 45% Saudization rate, with 100% among recent graduate hires, aligns with Vision 2030’s dual goals of localization and high-value job creation.
  • Investment in human capital—particularly hiring female engineers—validates the progress of workforce reforms and the maturing skills ecosystem now supporting global industries.

In summary, Saudi Arabia’s manufacturing and localization strategy is attracting global leaders like Schneider Electric and catalyzing export-oriented, high-tech production. As companies scale up operations and exports from Saudi soil, the Kingdom reinforces its role as the industrial and innovation heart of the region.

 

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