The Local Content and Government Procurement Authority (LCGPA) has signed two agreements to localise the industry and transfer knowledge for electric vehicles with CEER, in exchange for inclusion on the mandatory list of national products. 

the two agreements are expected to achieve an economic impact on GDP of approximately SAR9.213 billion over the next ten years, and to create more than 2,600 jobs.

This comes as part of both parties' efforts to achieve the Kingdom's local content agenda, by localizing industries, strengthening national industrial capabilities, and empowering this promising sector in the Kingdom of Saudi Arabia, said a statement.

The authority stated that the two agreements aim to localise the manufacturing of sedan and SUV electric vehicles, as part of CEER's efforts to launch the first Saudi electric vehicle to be designed, engineered, and manufactured entirely within the Kingdom. 

Inclusion on the mandatory list of national products will also help direct government spending toward listed products, in addition to empowering local manufacturers and national talent, strengthening advanced industrial capabilities in the Kingdom, and raising the competitiveness of the industrial sector, contributing to the objectives of Saudi Vision 2030.

The Chief Executive Officer (CEO) of the LCGPA, Abdulrahman bin Abdullah Al-Samari, explained that the automotive industry is considered one of the most important strategic industries in the world and plays a major role in achieving economic growth. He noted that it represents one of the targeted sectors under the National Industrial Strategy, indicating that the two agreements will contribute to developing strategic industries, strengthening local supply chains, creating job opportunities, stimulating the purchase of primary raw materials from the local market, and raising the competitiveness of the industrial sector in the Kingdom.

CEER CEO James DeLuca said: “The two agreements signed today with LCGPA mark a significant milestone for CEER and the future of mobility in Saudi Arabia. Through the localization of engineering, manufacturing, and knowledge transfer, we are building the foundations of a world-class automotive industry in the Kingdom while strengthening local supply chains and creating new opportunities for Saudi talent, as CEER aims, by 2034, to provide close to 30,000 jobs (6,500 direct and 23,500 indirect), with Saudi nationals filling 80% of direct jobs, in addition to achieving an economic impact on GDP estimated at approximately SAR30 billion, as well as reaching a 45% of local content in CEER's products. This partnership will generate lasting economic value and contribute to the Kingdom’s industrial transformation under Vision 2030.” - TradeArabia News Service