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Alkhorayef: Saudi Arabia Making Confident Strides Toward Localizing Automotive Industry

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
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Alkhorayef: Saudi Arabia Making Confident Strides Toward Localizing Automotive Industry

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef has said the Kingdom is making “confident strides” at an accelerated pace to localize the automotive industry.

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah.

He said the Kingdom’s efforts will create added value for the national economy and enhance its global competitiveness in line with the objectives of Saudi Vision 2030.

The plant is being built under a strategic partnership between the Public Investment Fund (PIF) and Hyundai Motor Company, a move that supports the localization of the automotive industry in the Kingdom and advances economic diversification.

The minister described the initiative as an important milestone in the journey to localize the automotive industry due to its significant impact.

He added that it will enhance industrial capabilities, strengthen supply chains, localize production, and develop local content, meeting local and regional demand for automobiles and consolidating the Kingdom's position as a global hub for the automotive industry.

He praised PIF’s role in driving industrial transformation and empowering high-value sectors with tangible economic impact in the Kingdom and the region.

He also highlighted the importance of integrated efforts by all relevant government entities in advancing the localization of the automotive industry, including the establishment of the Hyundai plant.

He thanked the Ministries of Investment, Energy, and Finance; the Ministry of Economy and Planning; the National Industrial Development Center; and the Saudi Industrial Development Fund.

Alkhorayef stressed that the project aligns with the Kingdom's accelerating industrial goals and its vision to transform ambitions into reality.

The National Industrial Strategy aims to attract three global automotive manufacturers to produce 300,000 vehicles annually within a single industrial complex, a goal now realized with Hyundai joining Lucid and Ceer.

The factory is projected to produce 50,000 vehicles annually and contribute approximately $5 billion to the Kingdom's gross domestic product (GDP) by 2045.

Hyundai has had a presence in the Saudi market for over 40 years and currently holds the second-largest market share in the Kingdom’s automotive sector.

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Trump Says China Can Buy Iranian Oil, but Urges it to Purchase US Crude

President Donald Trump poses for photographers as he arrives for a formal dinner at the Paleis Huis ten Bosch ahead of the NATO summit in The Hague, Netherlands, Tuesday, June 24, 2025. (AP Photo/Alex Brandon)
President Donald Trump poses for photographers as he arrives for a formal dinner at the Paleis Huis ten Bosch ahead of the NATO summit in The Hague, Netherlands, Tuesday, June 24, 2025. (AP Photo/Alex Brandon)
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Trump Says China Can Buy Iranian Oil, but Urges it to Purchase US Crude

President Donald Trump poses for photographers as he arrives for a formal dinner at the Paleis Huis ten Bosch ahead of the NATO summit in The Hague, Netherlands, Tuesday, June 24, 2025. (AP Photo/Alex Brandon)
President Donald Trump poses for photographers as he arrives for a formal dinner at the Paleis Huis ten Bosch ahead of the NATO summit in The Hague, Netherlands, Tuesday, June 24, 2025. (AP Photo/Alex Brandon)

US President Donald Trump said on Tuesday that China can continue to purchase Iranian oil after Israel and Iran agreed to a ceasefire, a move that the White House clarified did not indicate a relaxation of US sanctions.

"China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the US, also," Trump said in a post on Truth Social, just days after he ordered US bombings of three Iranian nuclear sites.

Trump was drawing attention to no attempts by Iran so far to close the Strait of Hormuz to oil tankers, as a closure would have been hard for China, the world's top importer of Iranian oil, a senior White House official told Reuters.

"The president continues to call on China and all countries to import our state-of-the-art oil rather than import Iranian oil in violation of US sanctions," the official said.

After the ceasefire announcement, Trump's comments on China were another bearish signal for oil prices, which fell nearly 6% on Tuesday.

Any relaxation of sanctions enforcement on Iran would mark a US policy shift after Trump said in February he was re-imposing maximum pressure on Iran, aiming to drive its oil exports to zero, over its nuclear program and funding of militants across the Middle East.

Trump imposed waves of Iran-related sanctions on several of China's independent "teapot" refineries and port terminal operators for purchases of Iranian oil.

"President Trump's greenlight for China to keep buying Iranian oil reflects a return to lax enforcement standards," said Scott Modell, a former CIA officer, now CEO of Rapidan Energy Group.

In addition to not enforcing sanctions, Trump could suspend or waive sanctions imposed by executive order or under authorities a president is granted in laws passed by Congress.

Trump will likely not waive sanctions ahead of coming rounds of US-Iran nuclear talks, Modell said. The measures provide leverage given Tehran's demand that any deal includes lifting them permanently.

Jeremy Paner, a partner at law firm Hughes Hubbard & Reed, said if Trump chooses to suspend Iran oil-related sanctions, it would require lots of work between agencies.

The US Treasury would need to issue licenses, and the State Department would have to issue waivers, which require Congressional notification.

Oil traders and analysts in Asia said they did not expect Trump's comments to have a near-term impact on Chinese purchases of oil from either Iran or the US.

Iranian oil accounts for roughly 13.6% of China's oil purchases this year, with the discounted barrels providing a lifeline to margin-squeezed independent refineries. US oil accounts for just 2% of China's imports, and Beijing's 10% tariffs on US oil deter further purchases.