March 5, 2024

Reshaping Saudi Arabia’s Industrial Landscape: 160 Vehicle Plants Transforming the Kingdom’s Manufacturing Sector

Reshaping Saudi Arabia’s Industrial Landscape: 160 Vehicle Plants Transforming the Kingdom’s Manufacturing Sector:

Saudi Arabia is investing heavily in its manufacturing sector, with a particular focus on the automobile industry, as part of the government’s efforts to diversify the economy away from oil dependence. With over 160 vehicle manufacturing plants, the country is reshaping its industrial landscape and positioning itself as a global hub for the automobile industry. Of these factories, 33 produce parts, accessories, and engines, 21 produce cars and structures, and 106 produce trailers and semi-trailers. According to management consulting firm Arthur D. Little Middle East, these factories, along with streamlined cost structures, provide an infrastructure to advance innovation-driven use cases within the Kingdom further.

The Impact of Saudi Arabia’s Industrial Transformation on the Local Workforce

The automobile industry is crucial to the country’s economic growth, as car sales in the Kingdom will increase by 24 percent per year until 2025. By 2030, the Kingdom plans on producing 300,000 cars, of which 62,000 will be electric. The National Council for Industry Development believes that electric cars will also add between 5 and 7 percent to the growth of the Kingdom. Lucid, Ceer, and Saudi National Automobile Manufacturing Co. (SNAM) are three of the key manufacturing initiatives underway in the Kingdom.

SNAM’s President, Fahad Al-Duhaish, said in January 2022 that they would build the first auto assembly factory in Jubail Industrial City. He shared that the space for testing and the assembly factory will add up to 120,000 square meters. He also added that every year, the plant would be able to make 30,000 cars.

Two months later, Lucid Motors won a contract to build its first factory in the Kingdom. Over the next 15 years, the company will get up to $3.4 billion in financing and incentives. SNAM seeks to construct a factory in Jubail Industrial City that will put together 30,000 cars each year. Ceer National Automotive Co. also bought a piece of land in the King Abdullah Economic City so they’d be able to build a special plant for electric cars. These changes are making new job vacancies possible and raising the country’s GDP, which is contributing to the stability and diversification of Saudi Arabia’s economy. As long as the Kingdom stays on this path, it will be on track to become a major economic powerhouse worldwide.


As the Kingdom invests heavily in its industrial landscape, it is experiencing a major transformation. With more than 160 vehicle manufacturing plants, the country has become a major player in the global auto industry, attracting top automakers and providing jobs for locals. The government’s strategy to diversify the economy is opening up new opportunities in industries like the auto industry. This is increasing GDP and paving the way for a strong and diverse economy. This fast growth puts Saudi Arabia in a good position to become a leading economic force around the world.

Last Updated on 3 months by newseditor

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