The Local Content and Government Procurement Authority (LCGPA) signed two agreements with CEER National Automotive Co. to localize electric vehicle (EV) manufacturing and facilitate knowledge transfer, in exchange for the company's products being included on the Mandatory List of National Products.
The agreements are part of both parties’ efforts to advance Saudi Arabia’s local content agenda by localizing industries, strengthening national industrial capabilities, and empowering the Kingdom’s growing electric vehicle sector.
The Authority stated that the agreements aim to localize the production of sedan and SUV EVs, as part of Ceer’s efforts to launch the first Saudi electric vehicle designed, engineered, and manufactured entirely within the Kingdom.
The inclusion of these vehicles in the Mandatory List of National Products will help direct government spending toward listed domestic products, support local manufacturers and national talent, strengthen the Kingdom’s advanced industrial capabilities, enhance the competitiveness of the industrial sector, and contribute to achieving the goals of Saudi Vision 2030.
National Strategy
CEO of the Local Content and Government Procurement Authority Abdulrahman Al-Samari said the automotive industry is one of the most important strategic industries globally and plays a vital role in driving economic growth. It is also one of the key sectors targeted under the Kingdom’s National Industrial Strategy.
He stressed that the two agreements will contribute to developing strategic industries, strengthening local supply chains, creating jobs, encouraging the purchase of raw materials from the local market, and increasing the competitiveness of Saudi Arabia’s industrial sector.
Al-Samari added that the agreements reflect the Authority’s ongoing efforts to develop local content through the localization of specialized industries and the transfer of advanced knowledge and technologies.
He noted that over the next ten years, the agreements are expected to generate an economic impact of approximately SAR 9.213 billion ($2.4 billion) on Saudi Arabia’s GDP and create more than 2,600 jobs.
Economic Impact
For his part, CEO of Ceer James DeLuca described the agreements as a pivotal milestone in Ceer’s journey and in the future of mobility in Saudi Arabia.
“By localizing engineering, manufacturing, and knowledge transfer, we are building a world-class automotive ecosystem in the Kingdom,” he said.
“This will strengthen local supply chains and create opportunities for Saudi talent. By 2034, Ceer aims to generate approximately 30,000 jobs (6,500 direct and 23,500 indirect), with Saudi nationals filling 80 percent of direct positions. The company also targets an estimated SAR30 billion contribution to GDP and aims to achieve 45 percent local content in its products.”
DeLuca added that this partnership will help generate sustainable economic value and support Saudi Arabia’s industrial transformation in line with the Kingdom’s Vision.
The Authority noted that these agreements form part of its broader efforts to implement its Industrial Localization and Knowledge Transfer Program, which encourages global industry leaders to relocate manufacturing and expertise to Saudi Arabia in exchange for agreed incentives.
The program is designed to create high-value industries, strengthen local content, and ensure economic returns for both the government and investors.
