Saudi Arabia has signed two agreements with CEER to localise the production of electric sedans and SUVs, strengthening the Kingdom’s automotive manufacturing sector under Vision 2030. The agreements are expected to contribute approximately SAR9.213 billion to GDP over the next decade while creating more than 2,600 jobs. They also aim to expand local supply chains, transfer engineering expertise and advanced technologies, and support the launch of the first Saudi-designed, engineered and manufactured electric vehicle through stronger government procurement of locally produced products.
Key Overview
- Saudi Arabia signed two agreements with CEER to localise electric vehicle manufacturing.
- The initiative is expected to contribute SAR9.213 billion to GDP over the next ten years.
- More than 2,600 jobs are expected to be created.
- The agreements cover the local production of electric sedans and SUVs.
- CEER’s products will be included on the government’s mandatory national products list.
- The initiative supports Vision 2030 by strengthening domestic manufacturing and industrial capabilities.
Saudi Arabia has signed two agreements with CEER to localise the production of electric sedans and SUVs, supporting the Kingdom’s industrial ambitions under Vision 2030 while strengthening domestic manufacturing and expanding the country’s electric vehicle industry.
The agreements, signed between the Local Content and Government Procurement Authority (LCGPA) and CEER, are expected to contribute approximately SAR 9.213 billion to Saudi Arabia’s gross domestic product over the next ten years while creating more than 2,600 jobs.
The initiative forms part of broader efforts to increase local content, strengthen national industrial capabilities and accelerate the development of advanced manufacturing industries within the Kingdom.
Agreements Support Local EV Manufacturing
According to the Local Content and Government Procurement Authority, the two agreements focus on localising the production of electric sedan and SUV models while facilitating the transfer of engineering expertise and advanced technologies.
The agreements also include CEER’s products on the government’s mandatory national products list, allowing government procurement to prioritise locally manufactured electric vehicles.
The move is expected to provide significant support for CEER’s efforts to design, engineer and manufacture Saudi Arabia’s first domestically produced electric vehicle while encouraging greater localisation across the automotive value chain.
By directing government purchasing toward locally manufactured products, the agreements are intended to strengthen domestic supply chains, reduce reliance on imports and expand advanced industrial capabilities within the Kingdom.
Supporting Vision 2030 Industrial Goals
The localisation programme aligns with Saudi Arabia’s wider Vision 2030 strategy, which seeks to diversify the economy by expanding manufacturing, attracting advanced industries and increasing private sector participation.
The Local Content and Government Procurement Authority (LCGPA) said the agreements support the Kingdom’s local content agenda by empowering the country’s growing electric vehicle sector while strengthening national industrial capabilities.
Beyond increasing local manufacturing, the initiative is expected to encourage knowledge transfer through the adoption of advanced technologies and engineering expertise, helping build a more competitive domestic automotive industry.
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CEER Expands Manufacturing Capacity
CEER is currently developing its electric vehicle manufacturing complex at King Abdullah Economic City near Jeddah.
The manufacturing site covers more than one million square metres and is designed to include dedicated facilities covering the major stages of vehicle production.
In 2024, CEER awarded a SAR5 billion construction contract to Modern Building Leaders for the development of the manufacturing complex. The covered production area is planned to extend across approximately 530,000 square metres.
Once operational, the facility is expected to support the production of Saudi Arabia’s first electric vehicles designed, engineered and manufactured entirely within the Kingdom.
Economic Impact
The Local Content and Government Procurement Authority (LCGPA) said the agreements are expected to generate an economic contribution of approximately SAR9.213 billion over the next decade.
In addition to supporting GDP growth, the initiative is projected to create more than 2,600 jobs, reflecting the government’s objective of building a domestic electric vehicle manufacturing ecosystem while expanding employment opportunities in advanced industries.
The agreements also reinforce efforts to strengthen local supply chains and increase domestic value creation by supporting local production and reducing dependence on imported vehicles.
Outlook
The agreements with CEER mark another step in Saudi Arabia’s efforts to establish a domestic electric vehicle manufacturing industry under Vision 2030. By combining local manufacturing, government procurement support, technology transfer and industrial capacity building, the Kingdom aims to strengthen its automotive sector while creating skilled employment and expanding local supply chains. As CEER progresses with its manufacturing complex at King Abdullah Economic City, the localisation programme is expected to play an important role in supporting Saudi Arabia’s long-term industrial diversification and economic development objectives.
FAQs
1. What do the agreements between the LCGPA and CEER cover?
The agreements cover the local manufacturing of electric sedan and SUV models, technology transfer and the inclusion of CEER’s products on the government’s mandatory national products list.
2. What economic impact are the agreements expected to generate?
The agreements are expected to contribute approximately SAR9.213 billion to Saudi Arabia’s GDP over the next ten years and create more than 2,600 jobs.
3. Where is CEER building its manufacturing facility?
CEER is developing its electric vehicle manufacturing complex at King Abdullah Economic City near Jeddah.
4. How do the agreements support Vision 2030?
The agreements support Vision 2030 by strengthening domestic manufacturing, expanding local supply chains, encouraging technology transfer and developing Saudi Arabia’s electric vehicle industry.
Sources: The Saudi Times, Zawya, Fuel Cells Works
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