Saudi Arabia is developing new industrial capabilities as part of its long-termeconomic diversification agenda. The automotive sector offers opportunities toexpand manufacturing, attract investment, create skilled employment, localizesupply chains, and support the transition toward sustainable mobility. This paperreviews the strategic foundations of automotive development in the Kingdom,including market scale, geographic position, infrastructure investment,government support, and growing interest in electric vehicles. It examinespotential contributions from vehicle assembly, component manufacturing,batteries, charging systems, logistics, sales, and aftersales services. The paperalso identifies key challenges involving workforce readiness, supplier depth,technology transfer, cost competitiveness, and global competition. It concludesthat Saudi Arabia can develop a strong regional automotive ecosystem throughcoordinated policy, targeted localization, technical education, quality systems,and long-term collaboration between government, investors, manufacturers, andlocal enterprises.
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Alaa Ali Alkhaled (2026) studied this question.
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