RIYADH: Saudi Crown Prince Mohammed bin Salman officially launched an automotive manufacturing hub ‘King Salman Automotive Cluster’ in King Abdullah Economic City (KAEC). This initiative aspires to make Saudi Arabia a key player in the global automotive industry.
The cluster will be a hub for both local and international companies, with manufacturing facilities and headquarters. Key participants comprise of Ceer, Saudi Arabia’s first electric vehicle brand and Lucid Motors, which opened its first international factory in KAEC in 2023.
Several Public Investment Fund (PIF) joint ventures will also be a part of this cluster. The high-tech Hyundai factory for car production and Pirelli’s tire manufacturing plant are also part of it.
The project is a major step in Saudi Arabia’s economic diversification, helping boost local manufacturing, increasing exports, and advancing sustainable transportation. The cluster is projected to bring in approximately SR 92 billion to GDP by 2035 and make way for direct and indirect jobs.
The cluster will boost research and development, improve supply chain efficiency and draw in investments from the private sector. Due to KAEC’s strategic location near a major port, businesses will benefit from the strong logistical support.
Additionally, the project supports the National Industrial Development and Logistics Program, positioning Saudi Arabia as a leading industrial and logistics hub by encouraging high-growth sectors and attracting foreign investment.
