In a significant gathering at the Huawei Cloud Automotive Forum, part of LEAP 2024, Huawei Cloud partnered with Saudi Arabia’s Ministry of Investment (MISA) and the Communications, Space & Technology Commission (CST) to explore the prospects of smart vehicle technologies and the expansion of Chinese automotive businesses into the Saudi market. The event was attended by Saudi government officials, investment bodies, industry stakeholders, and over ten Chinese automotive firms.
China has climbed to the top as the largest automotive exporter globally in 2023, leveraging the global trend of digitalization and smart technology. Chinese car makers are entering new territories, with Saudi Arabia’s digital ambitions and favorable industry policies laying out a welcome mat for these global players.
The Saudi Arabian officials from MISA and CST highlighted the country’s policy incentives and market potential for Chinese automakers and industry partners. Meanwhile, Huawei Cloud introduced their new ‘six-star support’ service to aid automotive enterprises in their global ventures, including showcasing their data centers and smart driving solutions in the Saudi region.
Digital Vision 2023: Intelligent Automotive Advances in the Middle East
Ahmad Almajed from CST expressed that Saudi Arabia holds vast potential in mobile digitalization and intelligence, which aligns with ‘Vision 2030’—a strategy to foster digital transformation throughout various industries. This vision is supported by initiatives that enhance the business climate, aiming to accelerate the adoption of innovative technologies like autonomous driving.
Nearly 20 Chinese companies, including Chery and ZEEKR, have been greenlit by CST for smart vehicle operations in Saudi Arabia, with MISA ensuring ongoing support for these companies to innovate locally.
Ahmed Almalki of MISA conveyed that Saudi Arabia’s rapid economic growth and strategic location make it an ideal investment hub. By 2035, the country plans to host several automotive OEMs, aiming for an annual production of over 600,000 vehicles with substantial local value addition.
Special Economic Zones (SEZs) are being established, including the King Abdullah Economic City (KAEC), which focuses on automotive supplier parks. These zones offer attractive tax incentives and supportive policies for qualifying business projects.
The forum facilitated open dialogue between Saudi government representatives, Huawei Cloud, and Chinese auto firms, emphasizing the mutual benefits of intelligent vehicle connectivity for Saudi Arabia’s industry.
Huawei Cloud’s Global Support for Automotive Enterprises
William Dong from Huawei Cloud discussed their comprehensive support for enterprises going global, which includes global presence, continuous innovation, user growth, stability, reliability, security compliance, and a shared ecosystem.
Huawei Cloud boasts a worldwide network ensuring low-latency, high-quality service. Their ongoing innovation offers scalable intelligent connectivity and driving cloud platforms, aiding the rapid development of smart automotive products.
They also provide resources for user base expansion, a reliable and secure network for intelligent services, and collaborative opportunities within a shared ecosystem to foster global brand development.
Shaping the Global Automotive Landscape in Saudi Arabia
A panel discussion shed light on the collaborative efforts between MISA, the Public Investment Fund, the National Industrial Development Center, Huawei Cloud, and Chinese automakers like Chery, focusing on the value of integrating the Chinese auto industry chain with Saudi Arabia’s market.
Chinese vehicle sales in Saudi Arabia have experienced significant growth, with Huawei Cloud offering substantial support for automotive enterprises entering the Saudi market. The nation eagerly anticipates the industry’s expansion.
The discussion also highlighted Saudi Arabia’s commitment to establishing an industry ecosystem with a fully-scaled supply chain to ensure collective success.
Huawei Cloud’s recent establishment of a cloud region in Riyadh underpins the digital infrastructure necessary for Chinese automakers to develop and deploy intelligent vehicle platforms tailored to the Saudi market. This infrastructure is expected to facilitate further technological advancements and support Saudi Arabia’s march towards Vision 2030.