RIYADH: Saudi Arabia’s General Authority for Competition on Wednesday launched a survey to study the structure of the auto sector in the Kingdom.
The study aims to root out harmful practices that may affect the sector’s growth and to ensure protection of customers’ rights and healthy competition among the sector’s stakeholders, the Saud Press Agency reported.
Saudi Arabia is considered one of the largest automotive markets in the Middle East. Moreover, the addition of 3 million women drivers to the automotive market by 2020 will open a host of incremental opportunities for investors and industry participants, ranging from car sales to motor insurance, vehicle leasing and driving schools.
It is part of the authority’s efforts to achieve the goals of Vision 2030, which envisages a strong economic sector built along modern lines and seeks promotion of fair competition in the Kingdom.
Saudi Arabia expects the first Saudi-made car to be launched in 2022 and the Royal Commission in Jubail started developing the infrastructure required for attracted three global automakers, Mohammad Al-Zahrani, director of Industrial Investment Development Department, told Al-Arabiya TV in January.
A study conducted by the Royal Commission eyes to attract almost SR40 billion ($10.67 billion) direct investments to the automotive industry by 2040, Al-Zahrani added, noting that this sector will contribute SR80 billion to the Saudi gross domestic product (GDP) and provide 27,000 direct jobs.
The Kingdom’s auto complex is part of the strategic industrial plan, as Jubail Industrial City and Ras Al-Khair Industrial City provide no less than 90 percent of the raw materials used in direct automobile manufacturing, he said.