The Saudi Arabian National Industrial Cluster Development Program (NICDP) and Toyota Motor Corporation (Toyota) have agreed to work together on a feasibility study for an industrial project to produce vehicles and parts in Saudi Arabia.
Abdul Latif Jameel, as the local distributor for Toyota, will also be taking part in the feasibility study.
H.E. Dr. Ibrahim Al-Assaf on behalf of H.E. Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources, Chairman of the Board at NICDP, signed a memorandum of understanding (MoU) with Takeshi Uchiyamada, Chairman of the Board at Toyota, in Tokyo, as part of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud’s recent visit to Japan.
Signing the MoU is part of NICDP plans for developing a globally competitive automotive industry in Saudi Arabia. It is one of several agreements between Saudi and Japanese businesses over the past few months, following the launch of the Saudi Japan Vision 2030 initiative, which aims to serve as a platform for increased cooperation and exchange among businesses from Saudi Arabia and Japan.
The NICDP/Toyota study will include an evaluation of the potential to develop a local supply base using materials produced by major Saudi companies like Sabic, Maaden, Petro Rabigh, and other major industrial companies in the country. It will also study the development and attraction of a suitably skilled local workforce, include training programs.
Toyota remains the leader in the Saudi Arabian and GCC car markets with more than 500,000 units sold in GCC in 2016.