Saudi Arabia’s Crown Prince Mohammed bin Salman has designated the automotive hub at King Abdullah Economic City as the King Salman Automotive Cluster. This development aims to be a central hub for the automotive industry, hosting headquarters and manufacturing sites for both local and international companies.
The cluster will feature prominent brands like Ceer, Saudi Arabia’s first electric vehicle brand, and Lucid Motors, which launched its first international factory here in 2023. Additionally, it will include several Public Investment Fund joint ventures, such as a highly automated factory with Hyundai Motor for car production and a partnership with Pirelli for a tire factory.
This initiative represents a major step in Saudi Arabia’s efforts to diversify its economy. It aims to bolster the automotive sector, enhance sustainable transportation, increase non-oil GDP, and boost exports. The cluster will enhance local manufacturing capacity, promote R&D, and streamline supply chains for both regional and international markets.
The project is poised to offer numerous investment opportunities for the private sector, encouraging the growth of emerging industries within the Kingdom. By 2035, the cluster’s companies are expected to contribute approximately SR92 billion to the GDP.
The establishment will create thousands of direct and indirect jobs, support local manufacturing, and enhance Saudi exports, positively affecting the nation’s balance of payments. Its strategic location at KAEC, near a developed port, provides significant benefits for local and international companies, facilitating partnerships within the automotive industry and related sectors.
The King Salman Automotive Cluster will be integral to the National Industrial Development and Logistics Program, which seeks to position Saudi Arabia as a leading industrial and global logistics hub by encouraging high-growth sectors and attracting foreign investment.
