Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, has revealed the Kingdom’s ambition to create a comprehensive hub for electric vehicle (EV) production.
Speaking at the World Economic Forum in Davos, the minister highlighted recent strides in the automotive industry as proof of Saudi dedication to future technologies.
AlKhorayef emphasized Saudi Arabia’s pivotal role in strengthening global supply chains, citing its strategic location, abundant natural resources, and commitment to infrastructure development under “Vision 2030.”
He also shared that the new industrial strategy is now in the implementation phase, underscoring the essential contribution of the private sector in establishing economically and commercially viable industries.
When asked to share the accomplishments of the National Strategy for Industry, launched over a year ago, AlKhorayef confirmed that the plan was underway and that Saudi Arabia is working on overcoming hurdles for investors.
“Today, we confidently state that the strategy is now being put into action,” he affirmed to Asharq Al-Awsat.
According to Al-Khorayef, the strategy has two main parts: the first involves the government handling things like infrastructure, industrial areas, and energy networks.
The second part is crucial, focusing on working closely with private investors inside and outside the country.
“Progress is evident, with the budget available in the first week of 2024, leading to the start of various projects,” said AlKhorayef.
“We've set up teams to understand investor needs, especially for major projects. We're also collaborating with other government entities to clear any hurdles for investors,” he added.
“The current list of projects in progress looks promising, and we're dedicated to speeding up their completion,” revealed AlKhorayef.
As for the role played by Saudi Arabia in bolstering global supply chains, especially amid their ongoing challenges post-COVID-19, AlKhorayef said: “A key part of our strategy in industry, mining, logistics, and exports is ensuring that the Kingdom plays a crucial role.”
The minister moved on to stress the importance of not overlooking the opportunities for a country like Saudi Arabia to help solve supply chain problems.
“The Kingdom’s exceptional location and natural resources give it a strong position. Since the launch of Vision 2030, improvements in infrastructure, like ports and roads, have prepared the Kingdom to offer solutions,” explained AlKhorayef.
With respect to Saudi Arabia taking on a larger role in regional and global industrial supply chains, the minister mentioned that the Kingdom’s National Strategy for Industry opens doors for new industries, meeting both local and global demand.
AlKhorayef noted that technological advancements bring a significant opportunity for the Kingdom’s competitive edge.
He underlined that Saudi Arabia’s industrial plan focuses on embracing and speeding up the use of technologies stemming from the Fourth Industrial Revolution, artificial intelligence, 3D printing, and additive manufacturing.
“That's why we've started the ‘Future Factories Program’ in the ministry to help factories transition quickly,” said AlKhorayef.
When it comes to cutting-edge technologies, Saudi Arabia is actively establishing a comprehensive sector for EV manufacturing.
Asked to shed light on the current and anticipated partnerships in the field of EV production, AlKhorayef said: “The automotive sector has a big role to play as it not only builds its own industry but also contributes to the broader industrial landscape.”
“This is crucial for developing important skills that can be used in other sectors.”
“It's important to note that even though Saudi Arabia is the largest car importer, it doesn't have its own car manufacturing industry yet.”
“Despite a delayed start in the car industry, recent progress shows that Saudi Arabia is serious about investing in future industries, especially with three companies gearing up to produce EVs.”
“We're actively working with these companies to make sure their projects run smoothly,” he said.
“For example, ‘Lucid Motors’ recently started manufacturing by assembling vehicles a few months ago, and other factories are moving in the right direction.”
“Additionally, we're helping these companies attract suppliers and create a hub for EV manufacturing in Saudi Arabia.”
“We're collaborating with different ministries to ensure that suppliers are close to these companies, making them more competitive,” AlKhorayef added.
