The Ministry of Investment of Saudi Arabia (MISA), the National Industrial Development Centre (NIDC), global automotive giant Stellantis, and Petromin Corporation have entered into a Memorandum of Understanding (MoU) to consider launching a vehicle manufacturing project in the Kingdom.

This agreement was formalised at the US–Saudi Investment Forum held in Washington DC, underscoring the strengthening economic relations between Saudi Arabia and the United States.

The proposed initiative aims to localise both commercial and passenger vehicle production within Saudi Arabia. By leveraging Stellantis’ extensive international expertise alongside Petromin’s established presence in the region, the collaboration intends to support Saudi Arabia’s vision of becoming a regional hub for advanced manufacturing industries.

Under the terms of the MoU, MISA and NIDC will offer industrial and regulatory backing in line with  Vision 2030. Their efforts will focus on fostering a competitive automotive value chain and facilitating the transfer of advanced technologies into the country.

Petromin, recognized as a leading mobility solutions provider in Saudi Arabia, is set to contribute as a local investor, bringing operational expertise and market insight. Stellantis will spearhead localisation initiatives for vehicle production, prioritising sustainability and electrification within their plans.

His Excellency Dr. Abdullah Al-Dubaikhi, Assistant Minister of Investment, commented: “This MoU paves the way for a distinctive investment partnership, reflecting the Kingdom’s attractiveness as a leading destination for global investments and advancing our Vision 2030 targets in the industrial sector.”

Saleh Al-Solami, CEO of NIDC, remarked: “Our goal is to build a regional production hub with strong supplier capabilities. This partnership accelerates that vision by combining global technology with local market strength.”

His Excellency Amr Al-Dabbagh, Chairman and CEO of Al-Dabbagh Group, called this agreement an important milestone for domestic industry development. “Petromin is proud to help bring world-class automotive technologies and manufacturing scale to Saudi Arabia, reinforcing its position as a regional hub for innovation and excellence.”

Samir Cherfan, Chief Operating Officer of Stellantis Middle East & Africa, stated: “This MoU is a strategic step toward building a future-ready automotive industry in the MEA region. Stellantis is committed to investing in local capabilities and supporting the region’s industrial ambitions.”

The initiative is expected to create highly skilled jobs, bolster regional supply chains, and promote growth among small- and medium-sized enterprises-supporting Saudi Arabia’s broader goal of becoming an international centre for advanced manufacturing and innovation.