Minister of Industry: Localization of the automotive industry and the future of Sir and Lucid in Saudi Arabia
The Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khorayef, affirmed that the Kingdom of Saudi Arabia is witnessing a historic transformation in its industrial sector, as qualitative industries have been introduced that did not exist before, foremost among them the automotive industry, which is a fundamental pillar in the Kingdom’s economic diversification strategy.
This came during his speech at the government press conference, where Al-Khurayyif reviewed the most prominent achievements of the industrial system, noting that these steps come in activation of the objectives of the Kingdom’s Vision 2030, which aims to transform the Kingdom into a leading industrial power and a global logistics platform.
King Salman Complex and the electric vehicle industry
In the announcement, the minister explained that the King Salman Automotive Industry Complex has been launched, representing an integrated environment to support this vital sector. He specifically mentioned SEER, the first Saudi brand for manufacturing electric vehicles, emphasizing that it will be at the forefront of companies operating in this field, reflecting the Kingdom's commitment to adopting future technologies and clean energy.
Al-Khurayyif also addressed strategic international partnerships, announcing the inauguration of Lucid Motors' electric vehicle factory, the company's first outside the United States, a move reflecting international investors' confidence in the Saudi industrial environment. Simultaneously, the foundation stone was laid for Hyundai Motors' global factory in the same area, further enhancing the integration of supply chains in this sector.
Strategic context and economic impact
These moves are part of the “National Industrial Strategy,” which aims to increase the industrial sector’s contribution to GDP and reduce reliance on imports. The automotive industry is a complex sector that brings with it a wide range of supporting industries, such as battery manufacturing, glass production, tire manufacturing, and spare parts production, creating significant investment opportunities for small and medium-sized enterprises (SMEs).
This localization is expected to have a significant economic and social impact, creating thousands of high-quality jobs for young Saudis in engineering, manufacturing, and advanced technology. It will also contribute to knowledge transfer and technology localization, positioning the Kingdom as a global automotive manufacturing hub and strengthening its role as a regional center for exporting vehicles to the Middle East and African markets.
“Made in Saudi Arabia” program
In a related context, the government press conference will host the Minister to discuss updates on the “Made in Saudi Arabia” program, a key driver for strengthening the industrial identity of Saudi products. The conference will also highlight the “Made in Saudi Arabia 2025” exhibition and its role in empowering local manufacturers and opening new markets for them. Additionally, the guest of honor country for the exhibition will be announced, and journalists' questions about the future of national industry will be answered.
