Saudi Arabia has announced the creation of the King Salman Automotive Cluster. This major initiative is designed to reshape the Kingdom’s automotive industry. With a target of contributing SR92 billion ($24.5 billion) to GDP by 2035, the cluster will be located within King Abdullah Economic City (KAEC). Therefore, it will serve as the primary hub for automotive manufacturing in Saudi Arabia.
Economic Diversification and Growth
Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud has designated the King Salman Automotive Cluster as the official center for automotive manufacturing. This move not only supports Saudi Arabia’s Vision 2030 but also focuses on economic diversification and sustainable transportation. By improving local manufacturing and supply chains, the cluster aims to boost non-oil GDP and increase exports, thus contributing to the Kingdom’s long-term economic goals.
Attracting Global and Local Companies
The cluster will host major international and local automotive companies. For instance, Ceer, Saudi Arabia’s first electric vehicle brand, and Lucid Motors, which opened its first international factory in KAEC in 2023, will be key players in the sector. Additionally, joint ventures are planned, including a highly automated car factory with Hyundai Motor and a tire factory with Pirelli. As a result, these projects reflect Saudi Arabia’s growing influence in the global automotive sector.
Promoting Investment and Employment
The King Salman Automotive Cluster will create significant investment opportunities. Furthermore, it will generate numerous jobs and support local manufacturing. With KAEC’s advanced logistics infrastructure and proximity to a major port, the cluster offers a strategic location for businesses looking to access global markets, thereby enhancing Saudi Arabia’s attractiveness to international investors.
Supporting Saudi Vision 2030
This initiative is a key part of Saudi Vision 2030, which seeks to diversify the economy and promote sustainability. In addition, it supports the National Industrial Development and Logistics Program, aiming to make Saudi Arabia a global leader in industry and logistics. Moreover, the cluster will attract foreign investment and foster local expertise, further strengthening the Kingdom’s position in the automotive sector.
Through partnerships with international manufacturers, Saudi Arabia continues to expand its influence in the automotive and mobility industries, enhancing its competitive edge on the global stage.
