Saudi Arabia has taken a major step toward strengthening its global logistics capabilities with the signing of a landmark SAR375 million agreement to establish a cutting-edge cable manufacturing facility at Ras Al-Khair Port. The Saudi Ports Authority (Mawani) and China’s ZTT Group formalized the partnership during the ninth Future Investment Initiative conference in Riyadh, marking a significant advancement in the Kingdom’s industrial and technological infrastructure.
Strategic Investment and Capacity
The state-of-the-art manufacturing plant, which will occupy an expansive 80,000 square meters at Ras Al-Khair Port, represents a major milestone in Saudi Arabia’s industrial development. The facility is designed to achieve impressive annual production targets, including 500 kilometers of submarine cables, 500 kilometers of terrestrial cables, and 12,500 kilometers of fiber optic cables, positioning the Kingdom as a key player in global telecommunications infrastructure.
Industrial Innovation and Economic Impact
This strategic partnership between Mawani and ZTT Group demonstrates Saudi Arabia’s commitment to diversifying its industrial base and attracting high-value foreign investment. The new manufacturing hub will not only create significant employment opportunities but also facilitate technology transfer and enhance the Kingdom’s domestic manufacturing capabilities in critical telecommunications infrastructure.
The selection of Ras Al-Khair Port as the location for this facility leverages the strategic advantages of Saudi Arabia’s eastern coast, providing efficient access to both regional and international markets while strengthening the Kingdom’s position in global supply chains.
Regional Leadership and Global Connectivity
The establishment of this advanced cable manufacturing facility aligns perfectly with Saudi Arabia’s broader objectives to enhance its telecommunications infrastructure and digital connectivity. By producing essential components for both submarine and terrestrial networks, the Kingdom is positioning itself as a crucial link in the global digital ecosystem.
The facility’s strategic location and production capacity will enable Saudi Arabia to meet growing regional demand for telecommunications infrastructure while also serving international markets, particularly in Asia, Africa, and Europe.
Vision 2030 Alignment
This landmark agreement directly supports the ambitious goals of Saudi Arabia’s National Transport and Logistics Strategy, a key pillar of Vision 2030. By establishing domestic production capabilities for critical telecommunications infrastructure, the Kingdom is advancing its objective of becoming a global logistics hub while reducing dependency on imports. The project exemplifies Saudi Arabia’s commitment to industrial innovation, economic diversification, and sustainable development, setting a strong foundation for the Kingdom’s continued growth as a global logistics and telecommunications leader.