Saudi Arabia imported more than 2.4 million vehicles at the cost of SR 181 billion in the past three years, whereas the value of its imports of automotive parts and accessories stood at nearly SR 19 billion, according to the General Department of Statistics.
Commerce and Industry Tawfiq Al-Rabiah said a number of auto firms such as Mercedes, Land Rover and other companies had expressed willingness to set up auto factories in the Kingdom.
The auto firms are in talks with the national industrial clusters program (NICP), he said.
The NICP aims to attract and provide support for the establishment of car assembling projects.
Azaam Alshalabi, chief of NICP, said car production in the Kingdom is estimated to hit 600,000 units by 2025.
Economists say that the Kingdom can achieve success in the auto industry because of the availability of basic materials such as iron, plastic, aluminum and glass, in addition to supportive industries.
The Council of Ministers recently approved the extension of NICP for another five years as part of efforts to strengthen the Kingdom’s drive toward industrialization.
Recent reports said the Kingdom offers lucrative investment opportunities in five key industrial sectors. They are minerals and metals; automotive, plastics and packaging; home appliances and solar energy.
Teams of professionals are available in each of these fields to offer consultation and technical support to investors, officials said.