Autumn: Localizing the automotive industry in Saudi Arabia and the Lucid and Sir factories
The Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khorayef, affirmed that the Kingdom of Saudi Arabia has succeeded in introducing qualitative industrial sectors that were not previously present within its economic map, foremost among them the automotive industry sector, in a strategic step aimed at strengthening the Kingdom’s position as a global industrial center.
A qualitative leap in the industrial sector
Speaking at the government press conference, Al-Khorayef explained that these steps are in line with the objectives of the National Industrial Strategy, which stems from the Kingdom’s Vision 2030. The minister pointed to the launch of the “King Salman Automotive Complex,” which is a key pillar in this direction, as it houses “Ceer,” the first Saudi brand for manufacturing electric cars, which will be at the forefront of companies leading this technological transformation in the region.
The minister added: “We witnessed the inauguration of the Lucid plant, which represents the company’s first plant outside the United States, reflecting the confidence of international investors in the Saudi industrial environment. In parallel, the foundation stone was laid for the Hyundai plant in the same region, which enhances the integration of supply chains in this vital sector.”.
Economic context and Vision 2030
These moves come within the context of a historic transformation of the Saudi economy, which seeks to reduce its reliance on oil as its primary source of income. The Kingdom has long been one of the region's largest car importers, but the current aim is to transform it into a manufacturer and exporter. The Kingdom aims to produce hundreds of thousands of cars annually by 2030, contributing to meeting domestic demand and exporting to regional and global markets.
Economic and strategic impact
Localizing the automotive industry has broad economic and developmental dimensions. Domestically, this sector will contribute to creating thousands of high-quality jobs for Saudi nationals in engineering, manufacturing, and advanced technology. It will also increase the industrial sector's contribution to non-oil GDP and attract billions of riyals in foreign direct investment.
Regionally, these projects place the Kingdom at the forefront of the electric vehicle market in the Middle East and North Africa, especially with the global trend towards clean energy and reducing carbon emissions, which is in line with the "Saudi Green" initiative.
"Made in Saudi Arabia" program
In a related context, the press conference addressed the "Made in Saudi Arabia" program, with the Minister highlighting the "Made in Saudi Arabia 2025" exhibition and emphasizing its significant impact on empowering national industry and promoting Saudi products globally. This program is a key driver in changing the stereotypical image of local industry and building confidence in Saudi products, thereby enhancing their competitiveness in international markets.
