News DeskRiyadh, Saudi Arabia – The Saudi Arabian automotive industry is undergoing a major transformation driven by the ambitious Vision 2030 economic framework, according to officials speaking at the Automechanika Riyadh trade show.
Eng. Aftab Ahmed, Chief Advisor for the Automotive Cluster at the National Industrial Development Center (NIDC), detailed the Kingdom’s strategic approach to enhancing its automotive sector through innovative practices, international partnerships, and a commitment to environmental sustainability.
A key initiative is establishing King Abdullah Economic City (KAEC) as an auto manufacturing hub, with major automakers like Ceer, Lucid, and Hyundai already setting up operations there.
“Saudi Arabia has the resources to transform into an industrial economy and raise non-oil exports from 16% to 50% of non-oil GDP,” stated Eng. Ahmed. The NIDC plans to invest in light vehicle manufacturing for regional and global markets by 2026-2027, as well as commercial fuel cell electric vehicles by 2030.
The strategy aims to create a robust automotive supplier ecosystem contributing over 40% local value, generating 66,000 jobs, and a $7 billion automotive industry GDP contribution.
Ammar Altaf, Assistant Deputy Minister at the Ministry of Investment, highlighted the Kingdom’s ambition: “Our target is 600,000 vehicles manufactured annually by 2035, with a $6 billion GDP impact.” Recent investments by Lucid ($3.3 billion) and Ceer ($7.3 billion) are expected to produce around 320,000 vehicles.
The 6th Automechanika Riyadh hosted a record 340 exhibitors from 26 countries, occupying over 258,000 square feet, showcasing the event’s importance to the rapidly growing Saudi automotive sector.
