RIYADH — Saudi Arabia created a new ministry for industry and mineral resources, separating it from the kingdom’s colossal energy ministry, and replaced the powerful head of the royal court, in a series of royal orders issued late on Friday.

Bandar Alkhorayef, an investor and industrialist plucked from the private sector, was named to head the new entity, which will become independent on Jan. 1. The move appears to diminish the sprawling authority of Khalid al-Falih, who retains control of the energy portfolio and chairmanship of state oil giant Saudi Aramco.

Mr. al-Falih had overseen more than half the Saudi economy through the super ministry, which was created in 2016 to help streamline new reforms. But despite ambitious plans for industry and mining, the sectors have seen relatively little development.

Two sources said Saudi industrialists were unhappy with a lack of results during Mr. al-Falih’s tenure. The separation followed meetings between those businessmen and Crown Prince Mohammed bin Salman, the country’s de facto ruler, one source added.