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The signing ceremony
Local Content & Government Procurement Authority (LCGPA) signed an agreement with Saudi Arabian Industrial Investments Co. (Dussur) to localize the bus industry, according to the LCGPA Twitter account.
The 10-year agreement will target the manufacturing of electric, hybrid electric and hydrogen fueled buses.
This deal will help achieve economic diversification, lower oil dependence, support the government auto industry, while boosting the local-content share in the Kingdom’s gross domestic product (GDP).
The gross production capacity of these planned factories is expected to reach 3,000 buses per year. Busses will be produced over phases to cater to the government requirements, which will help cut imports by over 30%.
The agreement is estimated to directly contribute SAR 8 billion to the Kingdom’s GDP, in addition to an indirect contribution of SAR 40 billion, with a Saudization rate of 80%.
Dussur is owned by the Public Investment Fund (PIF), Saudi Arabian Oil Co. (Saudi Aramco) and Saudi Basic Industries Corp. (SABIC).
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