The News
Saudi Arabia is planning an auto industry hub in King Abdullah Economic City on the Red Sea coast — its latest move to develop new industrial sectors that generate revenue and, just as importantly, create jobs.
The King Salman Automotive Cluster will bring together several existing projects, including assembly plants for two electric vehicle brands the Saudi government has heavily invested in: Lucid and the homegrown Ceer. Public Investment Fund joint ventures with Italian tire manufacturer Pirelli and Korean car giant Hyundai will also be part of the hub.
Saudi Arabia appears serious about building a viable long-term industry. While factories can be developed relatively easily by importing kits for local assembly, a fully fledged industry — where cars are designed and built from scratch — requires a broader supply chain, from metals and plastics to seats and batteries.
Officials expect companies in the new auto hub to contribute a cumulative 92 billion riyals ($24.5 billion) to the Saudi economy by 2035. The nearby King Abdullah Port and Jeddah Islamic Port provide a ready export route.