Saudi Arabia aims to become regional hub for auto industry: Industrial Center CEO

Logo of Industrial Center

Saudi Arabia is diligently working to become a regional hub for the automotive industry, in line with Vision 2030 and the National Industrial Strategy (NIS) launched in 2022, CEO of Industrial Center (IC) Khalil Ibnsalamah said at the KSA AutoConnect Forum in Rabigh.

The Kingdom is not only on its way to building a new car brand, but also to launch a new industry that attracts local and international investments, Ibnsalamah said at the first edition of the forum, being held in King Abdullah Economic City (KAEC).

Saudi Arabia witnessed great progress in the recent years, as four auto-manufacturing companies announced the production of 400,000 cars.

The automotive industry in Saudi Arabia has a deep history since the establishment of the first assembly line for Mercedes-Benz trucks in 1977. Last month, the Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) announced the signing of a joint venture (JV) agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia.

The JV announced at the Saudi Korean Business Forum, aims to manufacture 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicles (EV). The plant groundbreaking is planned for 2024, and production is expected to begin in 2026. The total investment for the project is estimated to exceed SAR 1.8 billion. In September, Lucid Group opened its first EV factory in KAEC