Saudi Arabia’s first electric vehicle manufacturer, Ceer, has been given permission to operate in the Kingdom as it pushes for industrialisation to create more jobs for the youth along with the stated goal to reduce dependence on oil revenue.
As of now, it is anticipated that Ceer will directly contribute SR30 billion ($8 billion) to Saudi Arabia’s GDP by 2034.
Ceer is anticipated to bring in foreign direct investment worth more than $150 million and generate up to 30,000 direct and indirect jobs in the Kingdom.
Saudi electric vehicle production Ceer was given permission by the Saudi Ministry of Industry and Mineral Resources to construct its manufacturing facility for more than one million square meters in the Industrial Valley of King Abdullah Economic City.
A joint venture between Foxconn and the Public Investment Fund (PIF), Ceer, was established under the direction of Prince Mohammed bin Salman bin Abdulaziz last November.
Jarrah bin Mohammed Al Jarrah, a spokesperson for the Saudi Ministry of Industry and Mineral Resources, has emphasised the automotive sector’s strategic importance to the Kingdom’s broader industrial plan.
The automotive industry, he continued, presents a compelling regional potential because the market for light automobiles is predicted to grow by double over the next ten years.
Al Jarrah also emphasised that other critical industries, such minerals and chemicals, will be stimulated by the car manufacturing industry. It fits nicely with the Kingdom’s plans for economic diversification and enhances its capacity to export to nearby markets, which helps the non-oil economy expand.
In addition to the direct economic benefits, the growth of a national automotive industry will also have positive indirect effects on the economy and local industry, including knowledge transfer, industry localization, the creation of local content, and job opportunities for locals.