LCGPA Signs Two Agreements with CEER to Localize Saudi Electric-Vehicle Manufacturing
ArabianDrive — Special Coverage
The Local Content and Government Procurement Authority (LCGPA) has announced the signing of two agreements with CEER to localize electric-vehicle manufacturing and transfer knowledge, in exchange for including the covered products on the mandatory list of national products.
The agreements target the localization of electric sedans and SUVs, with an expected economic impact of approximately SAR 9.213 billion on GDP over the next ten years and more than 2,600 jobs.
Scope of the agreements
Localizing Saudi Electric Sedan and SUV Production
The two agreements aim to localize 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.
Including the covered products on the mandatory list of national products will help direct government spending toward listed products, empower local manufacturers and national talent, strengthen advanced industrial capabilities, and support the objectives of Saudi Vision 2030.
Industrial impact
Why the Agreements Matter for Saudi Industry
LCGPA CEO Abdulrahman bin Abdullah Al-Samari described the automotive industry as one of the world’s most important strategic industries and a targeted sector under the National Industrial Strategy.
He said the agreements will support the development of strategic industries, strengthen local supply chains, create job opportunities, encourage the purchase of primary raw materials from the local market, and raise the competitiveness of Saudi Arabia’s industrial sector.
Expected economic impact
The agreements are expected to contribute approximately SAR 9.213 billion to GDP over the next ten years and create more than 2,600 jobs.
Local content
What Inclusion on the Mandatory List Means
Inclusion on the mandatory list of national products is intended to direct government spending toward listed products while empowering local manufacturers and national talent. It also supports the development of advanced industrial capabilities in the Kingdom.
- Direct government spending toward listed national products.
- Empower local manufacturers and national talent.
- Strengthen advanced industrial capabilities in Saudi Arabia.
- Support the objectives of Saudi Vision 2030.
Company statement
CEER's Targets Through 2034
CEER CEO James DeLuca said the agreements mark a significant milestone for the company and the future of mobility in Saudi Arabia.
By 2034, CEER aims to provide close to 30,000 jobs, including 6,500 direct and 23,500 indirect jobs, with Saudi nationals filling 80% of direct positions.
The company also aims to generate an estimated SAR 30 billion in GDP impact and reach 45% local content in CEER’s products.
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.
The cooperation framework
How the Localization and Knowledge-Transfer Mechanism Works
The agreements are part of LCGPA’s efforts to activate the Localizing Industry and Transferring Knowledge mechanism. It is designed to encourage investors that own globally leading industries to transfer industries and knowledge to Saudi Arabia.
Incentives are agreed upon based on feasibility studies that consider the economic return relative to the commitments of the government and the investor. The mechanism is intended to create specialized industries and strengthen local content.
Company profile
About CEER
Saudi electric-vehicle brand
CEER is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia. It will design, engineer, manufacture, and sell a range of vehicles, including sedans and sports utility vehicles, for consumers in Saudi Arabia and the region.
CEER is part of PIF's strategy to diversify Saudi Arabia's GDP growth by investing in promising growth industries. The company is a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn) and is partnering with BMW to access more than 100 years of technical know-how in vehicle development and manufacturing.
Foxconn will develop the electrical architecture of CEER vehicles, supporting a product portfolio focused on infotainment, connectivity, and autonomous-driving technologies. Each vehicle will be designed, engineered, and manufactured in Saudi Arabia and tested to global automotive quality-control and safety standards.
The Future of Electric Vehicle Manufacturing in Saudi Arabia
Follow ArabianDrive's exclusive coverage on electric-vehicle localization agreements and CEER's future mobility technology.
The takeaway
Conclusion
The two agreements connect electric-vehicle localization with knowledge transfer, local supply-chain development, and stronger industrial capabilities. They also support Saudi Arabia’s broader effort to build a competitive automotive sector under the goals of Saudi Vision 2030.