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Industrial manufacturing’s race to 2030

The next growth advantage for the Middle East will come from resilience and operational strength

PwC’s Middle East industrial manufacturing survey explores how resilience, operational strength, AI and localisation are shaping the region’s next phase of industrial growth

(PDF of 2.32MB)

Resilience is becoming the next source of industrial advantage

Industrial manufacturing in the Middle East is moving to the centre of national economic strategy.1 Across Qatar, Saudi Arabia and the UAE, industrial policy is increasingly focused on diversification, localisation, higher-value production, export growth and more secure supply chains.

For manufacturers operating in the region, growth remains important, but the ability to scale reliably now depends on stronger operational foundations. Macroeconomic volatility, supply chain disruption, energy costs, workforce capability and fast-changing customer expectations are shaping how companies create, deliver and capture value.2

The next phase of industrial growth will depend on whether manufacturers can strengthen resilience, improve efficiency, build local capability and apply technologies such as AI and automation in ways that improve performance across the value chain.

About the report

PwC’s Industrial manufacturing’s race to 2030 report examines how industrial manufacturers operating in the Middle East are responding to disruption, growth opportunities and capability pressures.

The report looks at key forces reshaping value creation, the rise of near-shoring and regionalisation, changing revenue opportunities, investment priorities, AI and automation adoption and the capability gaps that could slow transformation.

The report is designed for industrial leaders, supply chain executives, strategy teams, government-linked entities and investors seeking to understand where value is shifting in the region’s manufacturing sector and what capabilities will matter most on the road to 2030.

Key findings

61% of Middle East respondents cite operational efficiency and effectiveness as the capability most critical to future financial performance 

52% cite supply chain dynamics and 52% cite macroeconomic conditions as leading forces shaping how manufacturers create, deliver and capture value 

48% say they are very or extremely likely to near-shore or regionalise operations over the next five years, reflecting the need for greater supply chain control and flexibility 

Technology, digital and communications products and services show the largest expected increase as a future revenue source, rising from 20% this fiscal year to 33% over the next five years 

59% identify AI as the technology most likely to help achieve strategic goals, while automation is expected to expand across data capture, analytics, production, quality and support processes

Key areas covered in the report

  • How the Middle East’s industrial manufacturing sector is being reshaped for 2030, with Saudi Arabia, Qatar and the UAE advancing diversification, localisation and export-led growth
  • The operating context shaping manufacturing decisions, from macroeconomic volatility and energy costs to workforce capability and changing customer expectations 
  • Future revenue opportunities emerging across technology, digital and communications, EPCs, government-linked entities and adjacent high-growth markets 
  • How AI, automation and analytics are being considered across production, maintenance, quality, support processes and decision-making  
  • The capability gaps that could affect execution, including skills, legacy systems, investment capacity, data maturity and ecosystem collaboration

Three strategic choices for industrial leaders

The report identifies three connected choices for manufacturers operating in the Middle East:

1. Operational strength and resilience 

How manufacturers can build more reliable, efficient and resilient operations in a volatile environment

2. Market access and customer relevance 

How companies can respond as demand shifts across sectors, geographies and customer groups

3. Applied technology and capability-building 

How AI, automation and analytics can create value when supported by the right data, systems, workflows and skills 

Download the full report for the survey evidence, detailed findings and leadership implications. 

Download the full report

Understand how resilience, operational strength and technology adoption are shaping the Middle East’s industrial manufacturing agenda

(PDF of 2.32MB)

Contact us

Dr. Bashar El-Jawhari

Partner, Supply Chain & Localisation, PwC Middle East

Email

Mutasem AlNazer

Partner, Supply Chain & Efficiency Leader, PwC Middle East

+966 56 866 6693

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Mohammed Dayazada

Director, Supply Chain Localisation, PwC Middle East

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