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Factory to produce drones for industrial and agricultural purposes
A factory for the production of drones for industrial and agricultural purposes aims to establish an advanced factory for the production of drones designed for industrial and agricultural uses, in line with the digital transformation and innovation in various sectors within the Kingdom of Saudi Arabia. The factory will focus on developing and manufacturing high-tech drones capable of carrying out tasks such as aerial surveillance, topographical surveying, crop spraying, livestock management, and infrastructure inspection.
Study content
Rationale for choosing the project
Digital and technological transformation: The world, especially Saudi Arabia, is witnessing a major shift towards the use of modern technologies in the industrial and agricultural sectors, increasing the need for innovative solutions such as drones.
Saudi Vision 2030: The project supports the goals of Vision 2030 in strengthening national industry, developing artificial intelligence technologies, and supporting sustainability in the productive sectors.
Increased demand for drones: Drones are increasingly being utilized in areas such as smart agriculture, aerial surveying, industrial security, and logistics, creating a promising market opportunity.
Reduce operational costs: Drones reduce operational costs for the agricultural and industrial sectors by improving the efficiency of operations and reducing the need for traditional manpower.
Support food security: The use of drones in agriculture enhances productivity, reduces agricultural losses, and helps improve water resource management, supporting food security in the Kingdom.
Investment advantages
A growing market: Demand for drones in Saudi Arabia is on the rise as beneficiary sectors expand, boosting opportunities for high profits.
Government support: The Saudi government provides incentives for investment in advanced industries, including financing, tax exemptions, and regulatory facilities.
Local integration: The project contributes to reducing dependence on imports and enhancing local content by manufacturing drones locally.
Export opportunities: With increasing demand for drones in the GCC and Middle East, the factory can export products to regional markets.
Diversity in products: Different models of drones can be offered to suit the needs of different sectors, increasing the competitiveness of the project.
Demand analysis
Drones are in high demand for spraying pesticides and fertilizers, monitoring crop health, and efficiently managing water resources.
Drones are used to optimize agricultural production and reduce waste, making them an essential tool for farmers in Saudi Arabia.
Industrial sector: Industrial companies rely on drones to inspect and maintain infrastructure such as oil pipelines, power plants, and large-scale installations.
Drones play a key role in security surveillance and engineering surveys for major construction projects.
Logistics and Delivery: With the development of e-commerce, the demand for drones in express deliveries is increasing, especially in areas with difficult terrain.
Security and surveillance: The demand for drones in the fields of security, firefighting, and emergency relief is expected to increase, enhancing their role in protecting critical facilities.
Financial indicators
Expected capital: SAR 150-250 million
Capital payback period: 5 – 7 years
Return on Investment (ROI): 15% – 20% per annum
Net Profit Margin: 25% – 35%
Annual operating costs: SAR 30 – 50 million
Anticipated revenue after full operation: SAR 200 – 350 million per year
Features of the project
The first locally specialized factory: Promotes local production of drones, reducing the need for imports and supporting the national economy.
Advanced and integrated technologies: The factory relies on AI, IoT, and autonomy to develop highly efficient aircraft.
Supporting agricultural sustainability: It helps improve the efficient use of water, fertilizers, and pesticides through smart aircraft systems, enhancing food security and environmental sustainability.
Product diversification and multi-sectoral beneficiaries: The plant serves multiple sectors, including agriculture, security, industry, and logistics.
Growing market and export opportunities: Drones can be exported to regional markets, especially in the Gulf and Middle East.
Supporting Saudi Vision 2030: The project contributes to achieving the vision’s goals of advanced manufacturing, innovation, and self-sufficiency.
Create highly skilled jobs: Creates more than 500 direct and 1,000 indirect jobs in engineering, programming, and maintenance.
Potential strategic partnerships: Potential to collaborate with universities and research centers to develop new technologies and foster continuous innovation.
Low operational cost compared to imports: Provides local production at competitive prices against imported products, increasing opportunities for expansion and growth.
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