Riyadh: Vice Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Ibrahim bin Salamah delivered the opening speech at this year’s KSA Auto Connect Forum, organized in collaboration with the third edition of the Public Investment Fund (PIF) Private Sector Forum in Riyadh. The event served as a crucial platform for advancing Saudi Arabia’s efforts to localize and develop its automotive sector in alignment with Vision 2030.
According to Saudi Press Agency, Vice Minister bin Salamah expressed gratitude to the PIF, local and international Original Equipment Manufacturers (OEMs), suppliers, and stakeholders for their contributions to the industry’s growth. He emphasized the transformational progress achieved since the forum’s first edition in 2023, noting that the automotive sector in Saudi Arabia is witnessing unprecedented growth driven by innovation, knowledge transfer, and strategic partnerships.
He highlighted key achievements, including the localization of more than four OEMs and seven key tier-1 suppliers, marking a milestone in supply chain development and industrial self-sufficiency. He also underscored the establishment of the National Automotive and Vehicles Academy (NAVA), which equips the workforce with advanced automotive technology skills, and the Automotive Industry Committee, which fosters collaboration and supports sectoral growth.
The vice minister discussed the ministry’s plan to launch the Local Suppliers Development Program, a key initiative aimed at strengthening the local supplier base, which is considered the backbone of a thriving automotive industry. The program will focus on upskilling and certifying local suppliers to meet international automotive standards, enhancing supply chain resilience to reduce reliance on imports, and fostering long-term collaboration between Saudi businesses and international manufacturers.
He also detailed the material demand for producing 565,000 vehicles, creating significant investment opportunities in metals, plastics, rubber, and electronics. Additionally, he introduced the Standard Incentives Program for industrial investments, offering up to SAR 50 million per project to accelerate sector growth, with the first batch covering automotive components such as wiring harnesses, glass, and plastic parts.
The vice minister emphasized the forum’s role in facilitating supplier-OEM matchmaking, bringing together more than 130 suppliers and OEMs, including Ceer, Lucid, and Hyundai. The event concluded with the signing of 23 agreements, reinforcing Saudi Arabia’s commitment to localization and industrial transformation. He reaffirmed the Kingdom’s commitment to shaping a thriving and globally competitive automotive industry in alignment with Vision 2030, expressing confidence in the fruitful collaborations and agreements emerging from the forum.