The rapid digital transformation driven by Industry 4.0 has significantly accelerated smart manufacturing adoption in Saudi Arabia, supported by national initiatives such as Vision 2030, the National Industrial Strategy, and the Kingdom’s emerging Industry 4.0 ecosystem. Industry 5.0 is also a new trend towards which global manufacturing is shifting, emphasizing human-centricity, sustainability, resilience, and man–machine collaboration. There is a critical need to evaluate Saudi Arabia’s readiness for this next industrial transformation. This study examines the current level of Industry 4.0 adoption and investigates strategic readiness factors for transitioning to Industry 5.0 across Saudi Arabia's industrial sectors. A structured questionnaire was designed to evaluate organizational maturity, technological deployment, workforce competency, sustainability integration, and perceived barriers. Data were collected from manufacturing executives, engineers, and academic experts across key industrial clusters in the Kingdom. Statistical analysis, including reliability assessment and exploratory factor analysis, was conducted to validate the constructs and identify dominant transformation drivers. Furthermore, a Fuzzy-DEMATEL approach was applied to model causal relationships among enablers and challenges, categorizing factors into cause-effect groups. Results demonstrate strong digital adoption momentum and investment readiness in advanced manufacturing technologies, while human-capital capabilities, sustainability practices, and innovation culture emerged as strategic levers for Industry 5.0 maturity. This study contributes a structured roadmap for Saudi industries, highlighting technology-skills alignment, workforce upskilling, sustainable production practices, and human-centric manufacturing as key priorities. The findings support policymakers, industry leaders, and researchers in shaping future industrial strategies aligned with Vision 2030 and sustainable competitiveness goals.