Summary — best ERP choices for manufacturing in Saudi Arabia (with what makes each one a good fit)

Key Saudi requirements to consider first

• ZATCA (Fatoora) e‑invoicing integration (Phase 2 integration waves; many manufacturers must integrate their ERP with ZATCA). (zatca.gov.sa)
• VAT, Zakat/GOSI reporting, Arabic/English UI and local payroll/labor law (Saudization/Nitaqat) needs — your ERP and local partner must support these. (cleartax.com)

Top ERP systems to evaluate for manufacturing in Saudi Arabia

1. SAP (S/4HANA for large enterprises; SAP Business One for SMEs)

   • Strengths: deep manufacturing capabilities (discrete/process/assembly), strong global ecosystem, proven at large industrial customers, local partners in KSA for localization and ZATCA integration.
   • Good if you need comprehensive industry functionality, advanced planning, heavy shop‑floor integration and multi‑site/global consolidation. (High cost & long implementation.)

2. Oracle (Fusion Cloud ERP for large enterprises; NetSuite for mid‑market)

   • Strengths: Fusion — full enterprise finance + manufacturing in cloud for large/complex groups; NetSuite — flexible cloud ERP for growing manufacturers and multi‑entity setups. Both can be localized for KSA (VAT, Fatoora integration) via local partners. (inspirenet.com.sa)
   • Good if you want cloud-first, modern finance + supply chain with strong multi‑entity support.

3. Microsoft Dynamics 365 (Finance & Supply Chain Management / Business Central)

   • Strengths: strong integration with Microsoft stack (Azure, Office/Teams, Power BI), proven manufacturing modules and many certified KSA partners who handle localization (payroll, VAT, e‑invoicing). Good fit for mid‑to‑large manufacturers that value Microsoft ecosystem. (Microsoft.com)

4. IFS

   • Strengths: focused on asset‑intensive manufacturing, field service & maintenance-heavy industries (oil & gas, aerospace, heavy equipment). Strong capabilities for complex manufacturing and long asset lifecycles.
   • Good if you’re asset‑centric or heavy‑equipment manufacturer.

5. Epicor (Kinetic)

   • Strengths: strong discrete manufacturing functionality, shop‑floor control, MES integrations and good mid‑market pricing. Widely used in manufacturing verticals.
   • Good if you want manufacturing‑centric features without enterprise SAP/Oracle price tag.

6. Infor (CloudSuite Industrial / LN)

   • Strengths: industry templates for manufacturing verticals (process, discrete, mixed), strong supply‑chain and manufacturing execution features. Often chosen by industrial manufacturers and distributors.

7. Odoo (open‑source / modular)

   • Strengths: low entry cost, modular (manufacturing, MRP, inventory, accounting). Many Saudi partners localize Odoo for VAT and e‑invoicing; good for smaller manufacturers or pilot projects.
   • Caveat: may need significant partner customization for large/complex manufacturing processes and full regulatory compliance.

How to pick — practical checklist

• Size & complexity: large multi‑site/global = SAP S/4HANA or Oracle Fusion; mid‑market = NetSuite or Dynamics 365 F&O; SMB = Business Central, Business One, Odoo, Epicor.
• Manufacturing type: discrete/assembly, process/chemical, mixed-mode, or asset‑intensive — pick the vendor with proven templates for your sub‑industry (IFS for asset‑intensive; Epicor/Infor for discrete/process).
• Localization & compliance: verify partner experience with ZATCA Fatoora integration, VAT and payroll/GOSI/Saudization reporting. (ZATCA is rolling out integration waves through 2025 — vendors/partners must support integration.) (zatca.gov.sa)
• Implementation partner: in KSA the partner is as important as the product — choose partners with Saudi implementations, Arabic support, Fatoora/VAT experience and manufacturing references. (Look for local NetSuite/SAP/Microsoft certified partners.) (zawya.com)
• Total cost of ownership: include licenses, cloud hosting, localization/customizations, change management, and multi‑year support.

Suggested next steps (fast path)

1. Define needs: number of users, legal entities, manufacturing processes (MRP, MES, quality, batch/lots), and mandatory regulatory requirements (ZATCA wave timing for your revenue band). (zatca.gov.sa)
2. Create a shortlist of 3 vendors (one enterprise, one mid‑market, one flexible/low‑cost) and require each to demonstrate: KSA VAT & ZATCA Fatoora integration, Arabic UI, payroll/HR localization, and at least one Saudi manufacturing reference.
3. Run a focused RFP/workshop with 3 partners (functional fit + local compliance + TCO + implementation timeline).
4. Ask for reference visits and check partner SLAs for post‑go‑live support in Saudi time zones.

If you want, I can:

• Make a short, tailored shortlist (3 recommended systems + 2 local partners) for your company size and manufacturing type — provide industry, revenue band, and any tech constraints (cloud vs on‑prem) and I’ll produce the shortlist and a suggested RFP checklist.
• Or produce an RFP template that tests for ZATCA e‑invoicing readiness and Saudization/GOSI payroll support.

Sources / background reading

• ZATCA (Saudi) e‑invoicing integration requirements and waves. (zatca.gov.sa)
• NetSuite partner activity in the region and NetSuite localization providers. (zawya.com)
• Microsoft customer stories and Dynamics partner ecosystem in Saudi. (Microsoft.com)
• Oracle/Inspirenet summary of Fusion & NetSuite localization for Saudi requirements. (inspirenet.com.sa)

Would you like a shortlist tailored to your company (give me: company size, manufacturing type, on‑prem vs cloud preference and annual revenue band) and I’ll produce 3 recommended ERP+partner combinations and an RFP checklist?