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07-06-23

Saudi Arabia Signs Strategic Agreement with Valeo Egypt to Boost Localization of Automotive Industry

(MENAFN) Saudi Arabia's National Industrial Development Center (NIDC) has forged a strategic partnership with Valeo Egypt, the software development unit of a global automotive supplier, in a bid to localize the Kingdom's automotive industry. The agreement, outlined in a memorandum of understanding (MoU), aims to facilitate the localization of automotive components and the manufacturing of modern mobility technology systems within Saudi Arabia. This milestone development aligns with the objectives of the National Industrial Strategy (NIS) and holds the potential to greatly enhance the efficiency and growth of the country's automotive sector.

The MoU signing ceremony took place in the presence of Bandar Alkhorayef, the Saudi Minister of Industry and Mineral Resources, and Ahmed Saleh, the Egyptian Minister of Trade and Industry. With the participation of key stakeholders from both nations, the agreement signifies a collaborative effort to drive the localization of automotive manufacturing and technology in Saudi Arabia. It also reflects the strong commitment of both countries to foster economic cooperation and industrial development.

By localizing automotive components and modern mobility systems, Saudi Arabia aims to diversify its industrial base, boost non-oil exports, attract foreign investment, promote innovation and research, and generate local employment. The NIDC serves as the Kingdom's roadmap for achieving these strategic objectives, and the agreement with Valeo Egypt represents a significant step toward their realization. The collaboration will enable the transfer of advanced technology, knowledge, and expertise, fostering the development of a robust and competitive automotive industry in Saudi Arabia.

The partnership between the NIDC and Valeo Egypt signifies a major milestone in Saudi Arabia's journey toward developing a self-sustaining and globally competitive automotive sector. Through this collaboration, the Kingdom seeks to leverage Valeo Egypt's software development capabilities and global automotive expertise to enhance the localization of automotive components and drive the adoption of cutting-edge mobility technology solutions. The agreement opens up opportunities for local companies to participate in the supply chain and manufacturing processes, thereby creating a conducive environment for job creation, skill development, and economic growth.

With the support of the Saudi government and its commitment to industrial development, the strategic partnership between the NIDC and Valeo Egypt holds great potential for advancing the Kingdom's automotive industry. This collaboration signifies a crucial step in the ongoing efforts to transform Saudi Arabia into a regional hub for automotive manufacturing, innovation, and technology. By fostering localization and promoting the adoption of advanced automotive systems, Saudi Arabia aims to build a sustainable and competitive automotive industry that contributes significantly to the country's economic diversification and long-term growth.
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