Arab News, Mon, Apr 22, 2024 | Shawwal 13, 1445
Saudi Arabia accelerates automotive sector localization
RIYADH: Saudi Arabia’s automotive sector localization
is fast on track as part of the government’s efforts to achieve its Vision
2030 targets, according to a senior official.
At the Saudi-American Business Council seminar, Aftab Ahmed, a senior
adviser to the Kingdom’s National Center for Industrial Development in the
automotive sector, underscored the rapid transition toward domestic
production of passenger vehicles and parts.
He stated that this effort aligns with the ambitious objectives outlined in
the National Industrial Strategy under Saudi Vision 2030, the Saudi Press
Agency reported.
The council, in collaboration with the NCID, recently hosted a virtual
seminar on the future of the Kingdom’s automotive sector.
Over 100 industry leaders from Saudi Arabia and the US convened to discuss
various aspects of the sector, including government initiatives, investment
standards, and operational experiences within the Kingdom.
The event facilitated the exchange of insights and opportunities in this
rapidly evolving field.
Prominent industry leaders such as Ceer CEO James DeLuca and Lucid Motors
Vice President for the Middle East, Faisal Sultan, contributed to the
dialogue.
Interim President and CEO of the Saudi-American Business Council Susan
Lindman stressed the council’s long-standing mission to foster collaboration
and growth opportunities within the Kingdom’s automotive sector.
Lindman said: “We at the Saudi-American Business Council are pleased to
organize this event, as our mission for over 30 years has been to facilitate
collaboration and growth opportunities in sectors such as the automotive
industry in the Kingdom, and our role has been to connect industry leaders
and stakeholders, present market opportunities, promote valuable networking,
and discussions like these are fundamental in driving innovation and
progress within the industry, and we are committed to supporting initiatives
that enhance mutual prosperity and development.”
In November last year, the CEO of NCID, Khalil Ibn Salamah, said that Saudi
Arabia is seeking to become a regional center for the automotive industry,
indicating that Vision 2030 and the National Industrial Strategy launched in
2022 confirm the Kingdom’s commitment to the initiative.
In his speech at the opening of the first edition of the KSA Auto Connect
Forum, held `t King Abdullah Economic City in Rabigh, the NCID head added
that Saudi Arabia is not only progressing toward establishing an original
car brand but also cultivating a new industry that will attract domestic and
international investment.
The National Industrial Strategy is designed to transform the sector’s
economy into a flexible, regionally integrated powerhouse, aiming for global
leadership in selected commodities.
To realize this, NIS is strengthening supply chains, enhancing the
legislative and financing landscape, increasing small and medium-sized
enterprise contributions, and boosting local content.
It also focuses on expanding international trade and fostering a culture of
innovation and talent retention within the industrial sector.
Ambitious economic impacts include growing the industrial gross domestic
product contribution to $377.06 billion by 2035, creating 3.3 million jobs,
and significantly increasing exports and localization rates.