Deal signed for KSA’s first factory to make trailers

Updated 15 January 2013

Deal signed for KSA’s first factory to make trailers

Saudi and Turkish investors have reached an agreement to establish the Kingdom’s first factory to build trailers and containers at a cost of SR500 million.
The new factory to be established at Jeddah Industrial City will produce 5,000 trailers and containers this year, said Anwar Basaad, chairman of the board of directors of Reema Group.
“The agreement will help transfer of Turkish technology to Saudi Arabia,” he said, adding that there are good prospects for making trailers and containers in the Kingdom.
“We intend to meet the local demand for trailers and containers,” Basaad said. The factory will be established on an area of 20,000 square meters in the industrial city.
As per the agreement the Turkish side will train Saudis on operation and maintenance of the factory. “We have set out for this project considering the Kingdom’s political and economic stability,” he said.
“We have selected Turks for the project after conducting detailed studies,” Basaad said. The Turkish partner has achieved considerable experience in the field.
More than 160,000 heavy trucks operate in the Kingdom. Total investments in the Kingdom’s light, medium and heavy transport sector are estimated at more than SR80 billion.
The new move comes after the Kingdom began manufacturing Isuzu trucks in Dammam. Jaguar Land Rover of Tata Motors has signed a preliminary deal to build a plant in the Kingdom to make 50,000 Land Rovers a year.
The company plans to benefit from the upcoming multibillion integrated aluminum complex currently being built in Ras Al-Khair, north of Jubail. The $ 4 billion refinery and smelter plant is expected to produce the cheapest aluminum in the world.
The new assembly plant will be Tata Motor’s third largest assembly plant in the world, after the ones in the UK and China.
Saudi Arabia, which does not have an existing automotive industry, is seeking to develop local industry to diversify its economy away from oil exports, leveraging its abundant natural resources and low electricity prices.
The Isuzu plant in Dammam began assembling medium-duty trucks using parts supplied from the company's operations in Japan, Thailand, Indonesia and China.
Isuzu intends to manufacture some of the spare parts in the Kingdom. The present plant is making 600 units for the Saudi market. By the end of 2017, it will produce 25,000 light and heavy-duty trucks, 40 percent of them will be exported to countries in the region.
The Saudi Industrial Property Authority (Modon) said global car manufacturing companies are entering the Kingdom’s market, adding that their presence would create new opportunities for other industries. It will also create more job opportunities for Saudis and stimulate foreign investment.
Modon gives utmost importance to the automobile industry as it would contribute to transfer of international technology. These value-added projects should recur on the industrial sector in the Kingdom to open areas of employment and investment opportunities in complementary industries, it added.

Green light for crown prince-led Saudi privatization program

Updated 25 April 2018

Green light for crown prince-led Saudi privatization program

  • The Privatization Program is one of 12 key elements of the Saudi Arabia’s Vision 2030
  • The program is aimed at increasing job opportunities for Saudi nationals

RIYADH: Saudi Arabia’s Council of Economic and Development Affairs on Tuesday approved the Privatization Program that is one of 12 key elements of the Kingdom’s Vision 2030. 

The program is aimed at increasing job opportunities for Saudi nationals, attracting the latest technologies and innovations, and supporting economic development.

It encourages both local and foreign investment in order to enhance the role of the private sector, with government entities adopting a regulatory and supervisory role. The aim is to increase the private sector’s contribution to GDP from 40 percent to 65 percent by 2030. 

The program will aim to reach its objectives through encouraging the private sector to invest in establishing new schools, universities and health centers, while the government pursues its organizational and supervisory role in health and education.

The privatization program aims to benefit from previous success stories, with the private sector’s collaboration in the development of infrastructure, and its involvement on a large scale in sectors such as energy, water, transport, telecommunications, petrochemicals and finance.

The program sets out a series of objectives in three areas: Developing a general legal framework for policies related to privatization; establishing organizational foundations and dedicated institutions to execute the policies; and setting a timescale for their delivery. 

The Council of Economic and Development Affairs is headed by Crown Prince Mohammed bin Salman.