Saudi Arabia’s first electric vehicle brand, Ceer, has received a car manufacturing license within the country. The development is expected to contribute SR30bn ($8bn) to Saudi Arabia’s GDP by 2034. Furthermore, Ceer will also attract over SR562m ($150m) in foreign direct investment and create up to 30,000 jobs, both directly and indirectly.
The Saudi Ministry of Industry and Mineral Resources has granted Ceer the license to build its manufacturing facility. The facility will occupy an area of over one million square meters in King Abdullah Economic City’s Industrial Valley. Under the leadership of Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Public Investment Fund (PIF) and Foxconn launched Ceer in November as a joint venture.
Jarrah bin Mohammed Al-Jarrah, the spokesperson for the Saudi Ministry of Industry and Mineral Resources, has emphasized the strategic significance of the automotive industry. It plays a crucial role in Saudi Arabia’s overall industrial strategy.
Transforming Saudi Arabia’s Automotive Industry: Ceer’s Impact on GDP and Foreign Investment
With the global light vehicles market expected to double in the next decade, the automotive sector presents a significant regional opportunity. Al-Jarrah emphasized that the automotive manufacturing industry will act as a catalyst for other priority sectors such as minerals and chemicals. This aligns with the Kingdom’s diversification goals and its aim to export to neighbouring markets, contributing to the growth of the non-oil economy.
Apart from the direct economic benefits, the development of a national automotive sector will have indirect positive impacts on the economy and the local industry. It will facilitate knowledge transfer, localization of the industry, development of local content, and the creation of job opportunities for Saudi citizens.
Ceer is the first Saudi automotive brand to produce electric vehicles in the Kingdom. The company will be responsible for designing, manufacturing, and selling a range of vehicles, including sedans and SUVs, for consumers in Saudi Arabia and the MENA region.
Ceer’s electric vehicles will undergo rigorous testing to ensure they meet the highest global automotive quality control and safety standards. The brand aims to make its electric vehicles available for purchase by 2025.
Ceer’s manufacturing facility will be state-of-the-art, incorporating the latest technologies to enhance manufacturing efficiency while minimizing energy and water usage.