Riyadh, Saudi Arabia’s Ministry of Investment (MISA) today welcomed major investment from Lucid Group as the firm began construction of an advanced automotive manufacturing plant that targets 150,000 vehicles per year.
First announced at the end of February this year, the facility is also expected to contribute significantly to job creation and developing the skill base of the Saudi automotive manufacturing sector. Once full production capacity is established, the facility is expected to employ several thousand people, the majority of which are expected to be Saudi citizens.
Speaking on the commencement of construction, His Excellency Khalid Al-Falih said: “We extend our warm congratulations to Lucid on the latest step on what we hope will be a long and fruitful investment journey in Saudi Arabia. The development of the electric automotive manufacturing sector forms part of our wider efforts to develop our manufacturing sector. The sector will also play an important role in our transition to a greener economy and in the Kingdom’s efforts to realize its commitment to reach net zero by 2060. This project demonstrates that Saudi Arabia’s competitiveness, its ability to provide access to key growth markets and its ability to create opportunities through cross-government co-ordination mean that we can provide a compelling investment offer for those, like Lucid, looking to shape the future of the global economy.”
Saudi Arabia has seen strong increases in FDI in recent years, with FDI in 2021 at its highest level for more than a decade. This investment has been driven by the Kingdom’s ambitious economic transformation agenda set out in Vision 2030 and the National Investment Strategy, launched last year.
The development of the electric automotive manufacturing sector forms part of Saudi Arabia’s wider efforts to develop its manufacturing sector, create high-skilled employment and play a leading role in the development of the future of mobility and urban living. The sector will also play an important role in Saudi Arabia’s transition to a greener economy and in the Kingdom’s efforts to realize its commitment to reach net zero by 2060.
Lucid selected KAEC after reviewing multiple opportunities, with the company citing competitively priced commodities and energy, a newly emerging domestic supply chain and a factory location that facilitates global logistics among the reasons for its decision.
Source: Saudi Press Agency
