King Salman Auto Industry Complex is a new economic leadership
Taghreed Ibrahim Al -Tasan
In a move that reflects the ambitious vision of the Kingdom of Saudi Arabia towards strengthening advanced industries and diversifying the economy, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, announced the launch of the name (King Salman Complex) on the auto industry area in King Abdullah Economic City. This step is not just a new designation, but rather a basic pillar within the Kingdom’s industrial strategy, aimed at strengthening its position as a regional and global car industry center, attracting foreign investment, localization of technology, and creating qualitative job opportunities for citizens.
(King Salman Complex) is one of the main axes of the national industry strategy launched by the Kingdom within the Vision 2030.
The complex aims to achieve added value to the national economy by localizing the auto industry and reducing dependence on import, which contributes to enhancing the trade balance and alleviating the deficit in the balance of payments.
The complex also enhances the contribution of the industrial sector to the gross domestic product, as the Kingdom aims to increase the percentage of the industrial sector’s contribution to 20 % of the GDP by 2030.
The complex is expected to be an attraction for global investments, especially since the major car companies are looking for manufacturing sites that have advanced infrastructure and a promising market.
By providing incentives to investors and providing a competitive business environment, the complex can attract traditional and electrical car manufacturers, which enhances local supply chains and provides growth opportunities for the private sector.
Global trends indicate that the auto industry is a major shift towards electric and sustainable cars, and this is what the Kingdom is well.
The complex witnessed a strong start by embracing the first electric car manufacturing facility for Lusid Motors, in which the Saudi Public Investment Fund has a large share.
This step strengthens Saudi Arabia as a main player in the electric car market, which is expected to witness significant growth during the next decade with the escalation of global environmental trends.
The impact of the complex is not only to attract manufacturers, but also extends to include the development of an integrated system to support the auto sector, including research and development centers, test facilities, component production factories and spare parts locally.
This reduces dependence on import, and contributes to building a strong supply chain that supports the sector’s long -term sustainability.
The choice of King Abdullah Economic City as a site for the complex was not random, but rather came according to a strategic vision based on the distinguished geographical location and the advanced infrastructure of the city.
It is located on the Red Sea, which facilitates export operations to the regional and global markets, especially as it is linked to a network of ports, airports and highways that facilitate the movement of goods and raw materials.
The complex also enhances the role of the Kingdom as a regional car industry center in the Middle East, as Saudi Arabia provides a stable investment environment, supported by motivational legislation and economic facilities to attract major companies.
These factors make the complex an ideal platform for manufacturing and exporting cars to neighboring markets, especially since there is an increasing demand for cars in the Gulf Cooperation Council countries.
The “King Salman Complex” is based on the concept of sustainability, as it is developed according to the latest smart and friendly manufacturing standards. By integrating the techniques of the fourth industrial revolution, such as artificial intelligence and the Internet of Things, the complex can achieve high operational efficiency and reduce carbon emissions, which is in line with the global trend towards the green economy.
The dependence on renewable energy in the operation of the complex factories enhances the Kingdom’s position in the field of sustainable energy, especially with its ambitious projects in the solar energy and green hydrogen sector. This step places Saudi Arabia on a pioneering site as a center for the electric car industry, which relies on clean and sustainable energy sources.
In addition to the economic and investment benefits, the complex is an important tributary for the Saudi labor market. It is expected that it will provide thousands of direct and indirect jobs in the fields of engineering, manufacturing, research, development and logistical services.
It also contributes to enhancing training and qualification programs for national competencies, as the Kingdom seeks to build a new generation of Saudi engineers and technicians who are able to lead the future industry.
Investing in human capital through partnership between the government, the private sector and Saudi universities will contribute to the transfer of technical knowledge and the development of local skills, which supports the competitiveness of the Saudi market at the global level.
In conclusion, the “King Salman Car Industry Complex” is more than just an industrial project, as it is part of a strategic vision that aims to transform the Kingdom into an advanced industrial force based on innovation, technology and sustainability.
With the continued implementation of major projects that enhance economic diversification, Saudi Arabia places itself on the global map as a main destination for the auto industry, which supports the growth of the national economy and achieves the ambitions of Vision 2030.
