Saudi automotive industry to get a boost with high-level East Asia visit

The Saudi automotive market holds considerable regional influence, accounting for 40 percent of total sales in the Middle East and North Africa. File/Getty Images
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  • Minister of Industry and Mineral Resources Bandar Alkhorayef will lead a delegation to China and Singapore from Sept. 1 to 8
  • Visit aims to bolster bilateral relations, attract investment to the Kingdom, and explore joint-venture opportunities in the industrial sector

RIYADH: Saudi Arabia’s efforts to localize its automotive industry are set to gain significant traction with a high-profile ministerial visit to East Asia.

Minister of Industry and Mineral Resources Bandar Alkhorayef will lead a delegation to China and Singapore from Sept. 1 to 8. The visit aims to bolster bilateral relations, attract investment to Saudi Arabia, and explore joint-venture opportunities in the industrial sector, as reported by the Saudi Press Agency.

The Saudi automotive market holds considerable regional influence, accounting for 40 percent of total sales in the Middle East and North Africa. This visit aligns with the Kingdom’s ambition to become a major automotive hub and a leader in innovative, eco-friendly vehicle solutions.

This initiative supports Saudi Vision 2030, which seeks to diversify the economy and establish Saudi Arabia as a global leader in industrial development.

 

 

Saudi Arabia and China share a robust strategic relationship that has flourished over more than 80 years, growing rapidly in economic, developmental, and cultural fields. China is Saudi Arabia’s largest trading partner, with trade exceeding $100 billion in 2023. Notable Chinese investments in Saudi Arabia last year included $5.6 billion in automotive manufacturing, $5.26 billion in the minerals sector, and $4.26 billion in semiconductors.

The visit will also involve meetings with prominent global companies in automation and technology. Notably, discussions with Huawei in Guangzhou will focus on collaboration in smart solutions and leveraging technologies from the Fourth Industrial Revolution — an era characterized by rapid technological advancements integrating digital, biological, and physical domains.

Additional meetings in Guangzhou will include talks with GAC Group and General Lithium. In Hong Kong, the delegation will engage with officials from the Trade and Industry Department, the Innovation and Technology Bureau, logistics firm Hutchison Ports, and the Federation of Hong Kong Industries. They will also meet with Cyberport, a leader in advanced technology, and automotive firm Johnson Electric, among other key commercial and industrial players.

In Singapore, the agenda features discussions with the deputy prime minister, the minister of trade and industry, and the minister of manpower. The delegation will also meet with A*STAR, the Singapore Manufacturing Federation, and visit Tuas Port, the world’s largest automated port, alongside additional ministries and companies.

In 2023, Saudi non-oil exports to Singapore totaled SR9.3 billion ($2.47 billion), while imports amounted to SR5.9 billion. Key exports included plastics, chemicals, electrical appliances, and metals, while major imports from Singapore were ships, optical instruments, medical devices, and pharmaceuticals.

The automotive sector remains a focal point of Saudi Arabia’s national industry strategy, emphasizing the development of innovative technologies and market growth.