Saudi Arabia is advancing its Vision 2030 goals by pursuing the development of a commercial vehicle manufacturing facility, following a memorandum of understanding between Petromin Corporation, Foton, the Ministry of Investment, and the National Industrial Development Center.
This initiative is designed to boost local manufacturing capabilities, reinforce supply chains, and increase the localization of the vehicle sector. Plans include producing heavy-duty trucks, light-duty trucks, and buses within the Kingdom.
Amr Al-Dabbagh, Chairman and CEO of Al-Dabbagh Group, stated that this partnership with Foton—currently the leading commercial vehicle manufacturer in China according to company data—will help diversify the Saudi economy and deliver high-quality vehicles tailored to local needs. Chang Rui, Chairman of BAIC Foton, emphasized the collaboration’s goal to introduce advanced technology and sustainable mobility solutions to the Saudi market.
The project is supported by several Saudi government entities, including:
- the Ministry of Industry and Mineral Resources
- the Saudi Industrial Development Fund
- the Local Content and Government Procurement Authority
It is expected to generate jobs for Saudi nationals, encourage the growth of small and medium-sized enterprises, and contribute to a more sustainable and technologically advanced industrial sector.
Petromin brings extensive experience in automotive solutions across the Middle East, while Foton leverages global partnerships with companies like Daimler and Cummins to produce high-quality vehicles. Their collaboration aims to strengthen the local automotive industry and support Saudi Arabia’s broader economic transformation.
