Vice Minister Highlights Saudi Arabia’s Automotive Localization Progress

Vice Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Ibrahim bin Salamah highlighted Saudi Arabia’s significant progress in automotive localization during his opening speech at the KSA Auto Connect Forum 2025, held in Riyadh in collaboration with the third edition of the Public Investment Fund (PIF) Private Sector Forum. The event served as a platform to showcase the Kingdom’s achievements in developing a self-sufficient automotive industry, aligning with Vision 2030 goals.

Context and Background

The KSA Auto Connect Forum, building on its first edition in 2023, has become a key event for advancing Saudi Arabia’s automotive sector. The Kingdom is pursuing a comprehensive strategy to localize automotive manufacturing, reduce import dependence, and create high-value jobs. This effort is part of Vision 2030, which aims to diversify the economy beyond oil by fostering industrial growth and technological innovation.

Key Achievements in Automotive Localization

Vice Minister bin Salamah highlighted the localization of more than four Original Equipment Manufacturers (OEMs) and seven key tier-1 suppliers, marking a milestone in supply chain development. He also noted the establishment of the National Automotive & Vehicles Academy (NAVA) to equip the workforce with advanced skills and the Automotive Industry Committee to foster sectoral collaboration. The ministry plans to launch the Local Suppliers Development Program to strengthen the local supplier base, focusing on upskilling and certifying suppliers to meet international standards.

Implications and Investment Opportunities

The vice minister detailed material demand for producing 565,000 vehicles, creating investment opportunities in metals, plastics, rubber, and electronics. He introduced the Standard Incentives Program offering up to SAR 50 million per project to accelerate sector growth, with initial coverage for automotive components such as wiring harnesses, glass, and plastic parts. The forum facilitated matchmaking between 130 suppliers and OEMs, including Ceer, Lucid, and Hyundai, and concluded with the signing of 23 agreements.

Vision 2030 Alignment

These developments underscore Saudi Arabia’s commitment to building a globally competitive automotive industry as a pillar of Vision 2030. The localization efforts enhance economic resilience, promote innovation, and create sustainable job opportunities, positioning the Kingdom as a regional industrial hub and a key player in the global automotive supply chain.

20 Questions

Q1. What was the main topic of Vice Minister Khalil bin Ibrahim bin Salamah’s speech at the KSA Auto Connect Forum?

A1. The vice minister highlighted Saudi Arabia’s progress in automotive localization and the sector’s alignment with Vision 2030.

Q2. When and where did the KSA Auto Connect Forum 2025 take place?

A2. The forum took place on February 17, 2025, in Riyadh, in collaboration with the PIF Private Sector Forum.

Q3. How many OEMs have been localized in Saudi Arabia according to the vice minister?

A3. More than four OEMs have been localized as part of the Kingdom’s automotive localization efforts.

Q4. What is the National Automotive & Vehicles Academy (NAVA)?

A4. NAVA is an academy established to equip the Saudi workforce with advanced skills in automotive technology.

Q5. What is the purpose of the Local Suppliers Development Program?

A5. The program aims to strengthen local suppliers by upskilling and certifying them to meet international automotive standards.

Q6. How many vehicles’ material demand did the vice minister detail?

A6. He detailed the material demand required for producing 565,000 vehicles.

Q7. What is the maximum incentive offered under the Standard Incentives Program?

A7. The program offers up to SAR 50 million per project to accelerate industrial growth.

Q8. Which automotive components are covered in the first batch of the Standard Incentives Program?

A8. The first batch covers wiring harnesses, glass, and plastic parts.

Q9. How many suppliers and OEMs participated in the matchmaking sessions?

A9. More than 130 suppliers and OEMs participated in the matchmaking sessions.

Q10. Which major OEMs were involved in the forum?

A10. Ceer, Lucid, and Hyundai were among the OEMs involved.

Q11. How many agreements were signed at the conclusion of the forum?

A11. The forum concluded with the signing of 23 agreements.

Q12. What is the role of the Automotive Industry Committee?

A12. The committee fosters collaboration and supports sectoral growth in the automotive industry.

Q13. How does automotive localization support Vision 2030?

A13. It diversifies the economy, reduces import dependence, and creates high-value jobs.

Q14. What types of investment opportunities arise from vehicle production material demand?

A14. Opportunities exist in metals, plastics, rubber, and electronics sectors.

Q15. What is the main goal of the Local Suppliers Development Program?

A15. It aims to enhance supply chain resilience and reduce reliance on imports.

Q16. How does the forum facilitate supplier-OEM collaboration?

A16. Through matchmaking sessions that connect suppliers with OEMs.

Q17. What was the significance of the first KSA Auto Connect Forum in 2023?

A17. It marked the beginning of a platform to advance automotive localization in Saudi Arabia.

Q18. Who organized the KSA Auto Connect Forum?

A18. The forum was organized by the Ministry of Industry and Mineral Resources in collaboration with the PIF Private Sector Forum.

Q19. How does the Standard Incentives Program accelerate sector growth?

A19. By providing financial support of up to SAR 50 million per project for qualifying investments.

Q20. What is the broader impact of these automotive initiatives on Saudi Arabia’s economy?

A20. They contribute to industrial self-sufficiency, technological advancement, and job creation, aligning with Vision 2030.

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