The Jazan Chamber of Commerce and Industry (JCCI) has signed a cooperation agreement with China’s Xincheng Jiao Technology to establish a modern and advanced vehicle manufacturing facility in Saudi Arabia, with investments estimated at around €10 billion ($11.6 billion) over a period of 15 years.
According to the JCCI, the agreement aims to enhance industrial cooperation between Saudi Arabia and China and to localise the modern vehicle industry in the Kingdom, in line with the objectives of Saudi Vision 2030.
The new plant will be set up in the Jazan region, which has been earmarked by the Saudi government as a key industrial and logistics hub on the Red Sea. The project is expected to create thousands of jobs, boost technology transfer, and support the growth of a domestic automotive supply chain.
While detailed project timelines were not disclosed, the facility will reportedly cover the full spectrum of vehicle manufacturing operations, including assembly, component production and research activities aimed at developing advanced mobility technologies.
Xincheng Jiao Technology, based in China, specialises in advanced automotive and industrial technologies and has been expanding its international footprint in recent years. The company’s partnership with JCCI marks its first major investment in the Middle East.
Industry analysts said the project underscores Saudi Arabia’s growing appeal to global manufacturers seeking to tap the region’s industrial diversification drive. The deal also aligns with the Kingdom’s broader strategy to attract foreign direct investment in high-value sectors such as clean energy, mobility, and technology.
For Jazan, the agreement is seen as a significant boost to its efforts to establish itself as a major manufacturing centre. The region already hosts several large-scale industrial and infrastructure projects, including those within the Jazan City for Primary and Downstream Industries, which form part of Saudi Arabia’s industrial diversification programme. - TradeArabia News Service
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