Vice Minister Khalil Bin Salamah Highlights Saudi Arabia's Automotive Localization Efforts At KSA Auto Connect Forum

Vice Minister of Industry and Mineral Resources for Industrial Affairs, Eng. Khalil bin Ibrahim bin Salamah, addressed the KSA Auto Connect Forum in Riyadh. This event was held alongside the third edition of the Public Investment Fund (PIF) Private Sector Forum. It aimed to advance Saudi Arabia's automotive sector in line with Vision 2030.

The vice minister expressed gratitude to the PIF, local and international Original Equipment Manufacturers (OEMs), suppliers, and stakeholders for their contributions to the industry's growth. He highlighted the significant progress made since the forum's first edition in 2023, noting that Saudi Arabia's automotive sector is experiencing remarkable growth through innovation, knowledge transfer, and strategic partnerships.

Key achievements include localising over four OEMs and seven major tier-1 suppliers, marking a milestone in supply chain development and industrial self-sufficiency. The establishment of the National Automotive & Vehicles Academy (NAVA) was also underscored. This academy equips the workforce with advanced automotive technology skills.

The Automotive Industry Committee was mentioned as a platform fostering collaboration and supporting sectoral growth. The vice minister also discussed plans to launch the Local Suppliers Development Program. This initiative aims to strengthen local suppliers by upskilling and certifying them to meet international standards.

The program focuses on enhancing supply chain resilience by reducing reliance on imports and fostering long-term collaboration between Saudi businesses and international manufacturers. The vice minister detailed material demand for producing 565,000 vehicles, creating investment opportunities in metals, plastics, rubber, and electronics.

He introduced the Standard Incentives Program for industrial investments, offering up to SAR 50 million per project to accelerate sector growth. The first batch covers automotive components such as wiring harnesses, glass, and plastic parts.

Forum Outcomes

The forum facilitated supplier-OEM matchmaking by bringing together over 130 suppliers and OEMs like Ceer, Lucid, and Hyundai. The event concluded with 23 agreements signed, reinforcing Saudi Arabia’s commitment to localisation and industrial transformation.

The vice minister reaffirmed the Kingdom’s dedication to shaping a thriving automotive industry aligned with Vision 2030. He expressed confidence in fruitful collaborations emerging from the forum.

With inputs from SPA