Saudi Arabia Accelerates Automotive Industry Localization to Realize Vision 2030 Goals
In a significant move towards bolstering its automotive industry, His Excellency Minister of Industry and Mineral Resources, Bandar bin Ibrahim al-Khorayef, has asserted that Saudi Arabia is making impressive strides in localizing car manufacturing, which aligns with the targets outlined in Vision 2030. The Kingdom is emerging as a major player in the re-exportation of vehicles, attributing this advancement to the substantial development of its infrastructure and logistics services.
Speaking at a panel discussion titled “Global Business Practices in Challenging Times,” during the Qatar Economic Forum 2025 held in Doha, al-Khorayef expressed that the future of the electric vehicle industry is a crucial element in Saudi Arabia’s transition to cleaner energy. He emphasized the necessity of robust digital infrastructure for the industrial transformation and adoption of advanced manufacturing technologies. This includes embracing the Fourth Industrial Revolution, marked by innovations such as artificial intelligence and robotics. The Kingdom has made noteworthy investments to enhance its digital infrastructure while implementing laws and regulations to meet privacy and cybersecurity standards.
Highlighting the achievements of 2024, al-Khorayef noted a substantial leap in non-oil exports, whose contribution to the gross domestic product surged from 16% to an impressive 25%. This remarkable growth is directly linked to effective government policies, a responsive investment environment, and proactive engagement from the private sector. He reiterated that economic diversification is a fundamental pillar of the Saudi Vision 2030, with the industrial and mining sectors being pivotal engines driving this transformation. The Kingdom has transitioned from planning to practical execution regarding its economic goals.
On the topic of the mining sector, al-Khorayef remarked that while the abundance of mineral resources is vital, it alone is not sufficient for sector development and achieving ambitious targets. An effective regulatory and legislative framework is essential, which Saudi Arabia is prioritizing by upgrading its mining investment system. As a result, the country’s mining investment environment has become one of the fastest-growing globally, significantly shortening the license acquisition period to only six months—a stark contrast to the global average of three to five years.
The minister pointed out that the world is in a race against time to ensure the availability of crucial minerals essential for the clean energy transition. These minerals are integral to various advanced and strategic industries. In response, Saudi Arabia has established the International Mining Conference to serve as a platform for uniting global mining sector leaders, governmental entities, private organizations, financial institutions, academics, and technology providers. This conference aims to explore ways to accelerate mineral exploration, stimulate investments, strengthen supply chain integration, and shape a sustainable future for the global mining industry.
A notable observation made by al-Khorayef is that regions such as Africa, the Middle East, and Central Asia hold 33% of the world’s mineral reserves but account for only 6% of global production. He underscored that Saudi Arabia is actively working to narrow this gap through effective partnerships, which will not only enhance its mining production but also contribute to the global supply of essential minerals needed for economic transformation.
In summary, Saudi Arabia is poised to redefine its industrial landscape through strategic investments in the automotive and mining sectors, fostering a more resilient and diversified economy. By focusing on localization, advanced technology adoption, and effective regulation, the Kingdom is on a path to achieve its Vision 2030 aspirations while making a significant impact on global markets.
