Saudi Arabia imported more than 2.4 million vehicles at the cost of SR 181 billion in the past three years, whereas the value of its imports of automotive parts and accessories stood at nearly SR 19 billion, according to the General Department of Statistics.
Commerce and Industry Tawfiq Al-Rabiah said a number of auto firms such as Mercedes, Land Rover and other companies had expressed willingness to set up auto factories in the Kingdom.
The auto firms are in talks with the national industrial clusters program (NICP), he said.
The NICP aims to attract and provide support for the establishment of car assembling projects.
Azaam Alshalabi, chief of NICP, said car production in the Kingdom is estimated to hit 600,000 units by 2025.
Economists say that the Kingdom can achieve success in the auto industry because of the availability of basic materials such as iron, plastic, aluminum and glass, in addition to supportive industries.
The Council of Ministers recently approved the extension of NICP for another five years as part of efforts to strengthen the Kingdom’s drive toward industrialization.
Recent reports said the Kingdom offers lucrative investment opportunities in five key industrial sectors. They are minerals and metals; automotive, plastics and packaging; home appliances and solar energy.
Teams of professionals are available in each of these fields to offer consultation and technical support to investors, officials said.
Auto giants ‘in talks to set up KSA manufacturing ventures’
Auto giants ‘in talks to set up KSA manufacturing ventures’
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
