Source Credit: Arab News
The King Abdullah Economic City's (KAEC) automobile production area has been formally named the "King Salman Automotive Cluster" by Crown Prince Mohammed bin Salman. Important companies like Lucid Motors, which established its first overseas plant in KAEC in 2023, and Ceer, the first Saudi electric vehicle brand, will be part of the King Salman Automotive Cluster.
Significance
- This program supports the growth of the automobile industry and advances sustainable mobility, making it a major step in Saudi Arabia's efforts to diversify its economy.
- It is anticipated to help increase exports and the non-oil gross domestic product.
- The cluster will support research and development, boost local manufacturing capacity, and streamline supply chains for both domestic and foreign markets.
- It is expected that the project will provide a large number of private sector investment possibilities, supporting the development of promising sectors in the Kingdom.
- The cluster's businesses are expected to contribute a total of about SR92 billion ($24.5 billion) to the GDP by 2035.
Additionally, the cluster is anticipated to boost Saudi exports, promote domestic manufacturing, create thousands of direct and indirect jobs, and improve the country's balance of payments.
The cluster provides substantial benefits to both domestic private sector organizations and foreign businesses by utilizing KAEC's strong infrastructure and advantageous location close to a developed port. These elements will create many chances for suppliers, investors, and partners in the automotive industry and associated fields to work together.
The National Industrial Development and Logistics Program, which seeks to establish Saudi Arabia as a leading industrial hub and global logistics center by promoting high-growth industries and drawing in international investment, will be greatly advanced by the King Salman Automotive Cluster.
PIF's strategic investment areas include mobility and automotive, which are emphasized via collaborations with the private sector, improving infrastructure, and building up local supply chain capability. Additionally, PIF is advancing local knowledge and technology by partnering with significant global manufacturers.
