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How is Saudi Transforming Global Automotive Manufacturing?
Saudi Arabia has been actively working on decreasing its traditional dependence on oil exports. One key focus area is the manufacturing sector, with the country’s thriving automotive industry at its center, in line with the country’s vision to have 3–4 original equipment manufacturers (OEMs) producing over 400,000 passenger vehicles in Saudi Arabia by 2030.
The number of factories in the Kingdom increased by 10% in 2023, and 11,549 factories were operating by the end of the year. In addition, 1,379 new industrial licenses were issued, with investments amounting to SAR81 billion. The Saudi automotive manufacturing space has also seen a remarkable growth trajectory, achieving a CAGR of 4.22% over the period from 2024–2028. This year, the automotive components market is projected to see a record turnover of $2.06 billion in value added.
Saudi Progressive Vision for Automotive ManufacturingThe automotive manufacturing industry made headlines last year as a crucial component in the Kingdom’s shift away from importing final products to assembling and producing all vehicle parts domestically. The strategic push is aimed at stimulating economic growth through revenue generation and creating employment.
To that end, Saudi gears up to produce over 7600 Saudi-made products and increase its trade volume with 180 countries importing automotive products from the Kingdom; these developments highlight the KSA’s continued upward trajectory toward achieving its goals under the “Made in Saudi” project as part of Vision 2030.
Under the National Industrial Development and Logistics Program, the country is rapidly expanding its industries with the aim of becoming a leading industrial powerhouse and global logistics hub. At the fore of this fundamentally changing landscape are 160 vehicle manufacturers operating in the Kingdom, fueling innovation in the automotive space and transforming the status quo. Many of them are dedicated to the production of electric vehicles (EVs), a new frontier in the Saudi localization push of its automotive output.