The Kingdom of Saudi Arabia is making swift advances in the localization of its automotive sector, a key component of the government’s Vision 2030 blueprint. A leading official has highlighted the significant strides being made towards nurturing domestic manufacturing of vehicles and components.
During a seminar organized by the Saudi-American Business Council, Aftab Ahmed, a top adviser at the National Center for Industrial Development (NCID) for the automotive domain, pointed out the country’s quick shift to in-house production. This move is in line with the grand goals set out in the National Industrial Strategy, which falls under the umbrella of Saudi Vision 2030, as reported by the Saudi Press Agency.
The seminar, a collaborative effort between the council and the NCID, was held virtually and focused on the future trajectory of Saudi Arabia’s automotive industry. With over 100 key players from both Saudi Arabia and the United States in attendance, the event was a melting pot of discussions on government initiatives, investment benchmarks, and firsthand operational narratives from within the Kingdom.
The gathering served as a platform for the exchange of knowledge and exploration of opportunities in this dynamic sector. High-profile figures such as Ceer CEO James DeLuca and Lucid Motors VP for the Middle East, Faisal Sultan, were among the contributors to the conversation.
Susan Lindman, the Interim President and CEO of the Saudi-American Business Council, emphasized the organization’s enduring commitment to nurturing partnerships and uncovering growth prospects in the Kingdom’s automotive industry. Lindman elaborated on the council’s role in linking industry frontrunners and stakeholders, showcasing market possibilities, and promoting meaningful networking. She underscored the significance of such dialogues in spurring innovation and progression within the sector.
Previously, Khalil Ibn Salamah, the CEO of NCID, expressed Saudi Arabia’s ambition to emerge as a regional hub for the automotive sector. He indicated that the Vision 2030 and the National Industrial Strategy, initiated in 2022, reaffirm the Kingdom’s dedication to this endeavor.
During the inaugural KSA Auto Connect Forum in Rabigh’s King Abdullah Economic City, Salamah spoke of Saudi Arabia’s journey towards creating an indigenous car brand and nurturing a nascent industry poised to draw both local and global investments.
The National Industrial Strategy is devised to morph the sector’s economy into a dynamic, regionally connected leader, especially in chosen commodities. It aims to bolster supply chains, improve the legislative and finance landscape, elevate small and medium enterprise contributions, and ramp up local content.
Furthermore, the strategy seeks to augment international trade, instill a culture of innovation, and retain talent within the industrial sector. The anticipated economic outcomes include an increase in the industrial GDP to $377.06 billion by 2035, the creation of 3.3 million jobs, and a significant uptick in exports and localization rates.