Chinese Company to Build Car Manufacturing Plant in Southern Saudi Arabia

A Chinese company has chosen the Jazan region in southern Saudi Arabia to establish a modern and advanced car manufacturing plant, with investments estimated at around €10 billion (US$11.6 billion) over a period of 15 years.

Dr. Majed Al-Johari, Secretary-General of the Jazan Chamber of Commerce, confirmed that the choice of Jazan was due to its strategic location, international port, and large industrial zone, which together create an ideal environment for attracting heavy and advanced industries, including the automotive sector.

Recently, the Jazan Chamber organized an international business trip to China, with the participation of more than 35 businessmen and businesswomen representing 11 economic sectors in the region. The visit aimed to strengthen trade and investment cooperation and open new horizons for international partnerships.

In an interview with Asharq Al-Awsat, Dr. Al-Johari stated that this agreement marks a turning point in the chamber’s efforts to attract high-quality investments to the region. The project aims to establish a fully integrated factory for developing and manufacturing modern cars in Saudi Arabia, under the supervision of the chamber.

Technology Transfer and Industrial Cooperation

Al-Johari explained that this partnership with Xincheng Jiao Technology, one of China’s leading companies in advanced vehicle manufacturing, will contribute to transferring expertise and technology to the Saudi market. It will also strengthen Jazan’s position as a major industrial and logistics hub in southern Saudi Arabia.

He noted that the chamber will collaborate with the company to prepare a comprehensive market study to identify the needs and opportunities of the Saudi market, facilitate the necessary governmental support and coordination, and assist in selecting the optimal site for this promising industrial project.

Al-Johari added that this agreement aligns directly with the National Industrial Strategy, which aims to increase the industrial sector’s contribution to the national GDP, stimulate manufacturing industries, and create more high-quality job opportunities.

Attracting International Partners

Through this collaboration, the Jazan Chamber seeks to attract international partners with advanced industrial technologies and transfer them to Saudi Arabia through high value-added projects, according to Al-Johari.

He added that the cooperation will include preparing an in-depth study of the Saudi automobile market, identifying its future needs, and providing the necessary facilities and government support for the project’s success in coordination with relevant authorities. This will strengthen the Kingdom’s industrial capabilities and support the objectives of Vision 2030.

Al-Johari emphasized that the current growth of the Saudi industrial sector reflects an ambitious vision to transform the Kingdom into a regional center for the production of both conventional and electric vehicles. He stated that the new agreement supports this national direction, contributing to the localization of supply chains and advanced manufacturing technologies within the Kingdom.

Boosting Investment in Jazan

He continued: “We believe that the coming phase will witness the birth of an advanced Saudi automotive industry, with Jazan as one of its main contributors—by providing a stimulating environment for investment and innovation in manufacturing.”

The Secretary-General also mentioned that the Jazan Chamber led a delegation of business leaders—men and women—from 11 different economic sectors on a 12-day investment tour in China. The tour included field visits to major industrial cities such as Guangzhou, Shenzhen, Zhongshan, and Foshan.

The trip resulted in the signing of more than 45 agreements and memoranda of understanding with Chinese companies and institutions in various sectors including industry, energy, education, technology, logistics, tourism, and real estate, reflecting the diversity of targeted sectors and the depth of partnerships established.

Al-Johari said these agreements represent an important milestone in Jazan’s industrial and investment development journey, as they bring promising opportunities for localizing industries, transferring knowledge and technology, and opening new markets for Saudi products.

He added: “We at the Jazan Chamber believe this was one of the most successful economic missions carried out by Saudi chambers in recent years, given the tangible results and strategic partnerships achieved. These will have a positive impact on the national economy in general, and on the Jazan region in particular, strengthening its position as an emerging investment hub in southern Saudi Arabia.”

The latest agreement aims to enhance industrial cooperation between Saudi Arabia and China and to support the localization of modern car manufacturing in the Kingdom in line with the goals of Vision 2030.

The areas of cooperation include conducting comprehensive studies of the local market to determine its needs and future opportunities in the automotive sector, facilitating and providing the necessary governmental support to ensure the project’s success, and identifying the project site in coordination with the relevant government entities in Saudi Arabia.

source: Asharq Al Awsat newspaper