The U.S.-Saudi Arabian Business Council (USSABC) issued a press release today to announce a new conference in Michigan to promote the Saudi auto industry.
H.E. Tawfiq al Rabiah, the Saudi Minister of Commerce and Industry, is listed as a confirmed speaker of the event, which will “bring together senior Saudi Government officials, major Saudi industrialists, and leading OEMs to highlight the advantages of doing business in the Middle East’s largest car market” in Birmingham, Michigan.
According to the press release issued today:
“The Saudi Government has taken a number of steps to build an automotive cluster in the country. Isuzu of Japan is already assembling light trucks in Saudi Arabia and Jaguar/Land Rover has recently signed a letter of intent to build a manufacturing plant as well. Low energy costs, a pro-business environment, and the availability of raw material inputs for vehicle “lightweighting” are drawing the attention of OEMs and automotive component suppliers worldwide. Reducing vehicle weight to meet rising fuel efficiency targets is a priority among most auto manufacturers. Lightweight plastics and aluminum are key material inputs for this effort. Saudi Arabia is home to the Saudi Basic Industries Corporation (SABIC), a world leader in automotive plastics technology, and also boasts one of the world’s largest integrated aluminum production facilities, a joint venture of Alcoa and Ma’aden, Saudi Arabia’s leading mining corporation.
“Rising auto sales in Saudi Arabia and other emerging markets in the region has also put the country on the map for OEMs looking to tap into new growth opportunities. Saudi Arabia’s vehicle sales totaled 759,000 in 2011 and are expected to pass the 1 million per year mark by 2018. The country also has tariff free access to the 1.2 million annual auto market of the Gulf Cooperation Council (GCC) nations and has rapid access to more than 400 million consumers in the Middle East and North Africa (MENA). The powerhouse market of South Asia – approximately one-fifth of the world’s consumers – is within easy reach by air and sea.”
