The Saudi Arabia Ministry Of Investment, Stellantis, & Petromin Sign MoU To Set Up Local Vehicle Manufacturing In The Kingdom Of Saudi Arabia

SAUDI ARABIA: The Saudi Arabia Ministry of Investment, National Industrial Development Centre, Stellantis, and Petromin have signed a Memorandum of Understanding (MoU) to explore a joint vehicle manufacturing project in Saudi Arabia. The agreement was formalised in Washington, D.C., during the U.S.-Saudi Investment Forum. 

The forum was held at the John F. Kennedy Centre, and it brought together crucial senior officials and business leaders, along with investment partners, to strengthen bilateral discussions on economic cooperation in sectors like energy, technology, infrastructure, and mobility. The signing of the MoU signals Saudi Arabia’s seriousness in meeting the Vision 2030 goals and positioning itself as a regional hub for advanced automotive manufacturing.

Stellantis and the Petromin corporation had earlier signed the Business Collaboration Agreement in 2025 to establish a significant partnership and a strong industrial presence in the Kingdom. The new collaboration is expected to have the four partners jointly assess the feasibility of setting up a new plant capable of producing both commercial and passenger vehicles. The partnership also aims at supporting and developing a domestic supply chain while increasing localisation rates and supporting a competitive automotive ecosystem in Saudi Arabia.

When asked about the new partnership, Abdullah A. Aldubaikhi, Assistant Minister of Ministry of Investment, said “We congratulate our partners for signing the MoU that paves the way for a distinctive investment partnership, which reflects the attractiveness of the Kingdom as a leading destination for global investments, and represents a major step toward achieving the targets of the Kingdom’s Vision 2030 in the industrial sector.

The MoU with the Stellantis, one of the world’s largest automotive manufacturers, and in partnership with one of the leaders of the Automotive private sector in the Kingdom, Petromin Corporation, confirms the success of the Kingdom’s efforts—represented by the Ministry of Investment (MISA), the Ministry of Industry and Mineral Resources (MIM), and the National Industrial Development Center (NIDC), and other relevant stakeholders— to grow foreign direct investment flows into promising sectors, foremost among them the automotive manufacturing sector. At the Ministry of Investment (MISA), we affirm our full commitment to providing all necessary support and enablement for this partnership, and to overcoming any challenges to ensure its success and sustainability.”

Similarly, while sharing their thoughts on the MoU signing,  His Excellency Amr-Al-Dabbagh, Chairman and CEO of Al-Dabbagh Group, stated, “Petromin Corporation is deeply committed to supporting the Kingdom’s Vision 2030 and beyond. We are proud to be among the leading pioneers driving domestic automotive manufacturing and industrialisation in Saudi Arabia, in partnership with Stellantis and its globally renowned brands. This collaboration will bring world-class technologies, capabilities, human resource development and scale to the Kingdom — reinforcing its position as a future regional hub for automotive innovation and excellence.”

Samir Cherfan, the Chief Operating Officer of Stellantis Middle East & Africa and Global Head of Micromobility, also added, "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 delivering freedom of choice to customers while supporting the Region’s industrial ambitions and great growth potential."

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