- Saudi Arabia partners with Stellantis, Petromin to explore local vehicle manufacturing.
- Initiative supports Vision 2030, diversifying the economy and boosting automotive sector localization.
- The project aims to create jobs, enhance technology, and strengthen domestic supply chains.
Saudi Arabia is collaborating with international automaker Stellantis and the local automotive products and services group Petromin Corporation to establish vehicle manufacturing in the Gulf nation, it announced.
The Ministry of Investment of Saudi Arabia, the National Industrial Development Center (NIDC), and two companies have signed a memorandum of understanding to assess the feasibility of establishing a manufacturing facility aimed at localizing the production of commercial and passenger vehicles, the partners announced in a joint statement on Thursday, without disclosing financial specifics.
The collaboration aims to aid the kingdom's Vision 2030 initiative, established in 2016, to diversify the economy beyond oil, encourage investment and private sector development, and upgrade economic and social infrastructure.
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"The project aims to increase localization rates within the vehicle sector, contributing to the growth and sustainability of the automotive industry in Saudi Arabia," the partners said, adding that Petromin is a prospective investor in the initiative."
The initial agreement was signed at an investment forum in Washington during Saudi Arabian Crown Prince Mohammed bin Salman's visit to the White House, where officials highlighted billions in new investments and strengthening financial relations between the nations.
The suggested initiative is anticipated to generate numerous jobs, promote technology exchange, and enhance the Kingdom’s industrial strength. Through local vehicle production, Saudi Arabia seeks to decrease reliance on imports, strengthen domestic supply chains, and draw additional foreign investment, establishing itself as a regional automotive center in line with Vision 2030 goals.