Saudi Arabia’s growing automotive industry is set to attract up to 300 new factories supplying vehicle components, as major carmakers, including Ceer, Lucid, and Hyundai, set up plants in the Kingdom, revealed Vice Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah.
He told Asharq Al-Awsat that these factories will produce essential parts, from plastics—already a Saudi export—to metal components used in steel and aluminum car manufacturing. Many suppliers will be local companies, strengthening domestic supply chains.
The Kingdom has made major strides in industry, drawing investors through initiatives by the Ministry of Industry and Mineral Resources. Investors are coming directly or through partnerships, attracted by Saudi Arabia’s strong infrastructure, strategic location, and business-friendly policies.
A key incentive is the benchmark support program, offering up to 50 million riyals ($13.3 million) per project to accelerate industrial growth.
Saudi Arabia is also pushing to localize car manufacturing, with Ceer, Lucid, and Hyundai already building plants in King Abdullah Economic City (KAEC). More global automakers are interested in establishing operations in the country.
The electronics industry is also seeing strong growth, with companies like “Alrowad” and Machines Company supporting the automotive and aerospace supply chains, said bin Salamah.
To boost industrial development, the government has created specialized zones: Jeddah will focus on aircraft manufacturing, KAEC will be a hub for automobiles, and Jubail will specialize in petrochemicals, he added.
These zones aim to ensure balanced industrial growth and efficiency.
Saudi Arabia is ramping up its aircraft manufacturing sector, investing in infrastructure and collaborating with global aerospace firms. The government recently hosted workshops with Airbus to localize aircraft component production in the Kingdom, continued bin Salamah.
Airbus has a backlog of aircraft orders spanning over a decade, making Saudi Arabia a vital supply chain partner to help meet global demand.
Alongside infrastructure, the government is offering incentives and support programs to grow local manufacturing and position Saudi Arabia as a key player in global aviation, automotive, and electronics supply chains, said bin Salamah.
The country has also launched its first aviation manufacturing and maintenance city in Jeddah, issuing licenses for aircraft maintenance and repair. The recent Saudi Aerospace Connect Forum gathered major global aerospace firms to discuss the future of aircraft manufacturing in the Kingdom.
