Saudi Arabia is to develop a domestic auto parts manufacturing industry to meet rising demand in the Kingdom for vehicle components and accessories. According to industry figures Saudi Arabia is the biggest importer of vehicle components and accessories in the Middle East. It is estimated there are over six million vehicles in the Kingdom and automotive aftermarket imports, excluding tires, exceeded $665 million last year.
The plans were revealed at the recent Automotive Aftermarket Middle East (AAME) 2003. Speaking at the fair, Marketing Consultant with the Saudi Industrial Development Fund’s (SIDF) Projects Department, Mohammed A Al-Nutaifi, said the Kingdom is keen to attract more foreign investment and create jobs for its population.
“SIDF is offering subsidised loans and other incentives, such as low cost energy and services and tax breaks, to foreign companies wanting to establish factories to help meet the huge domestic demand for vehicle components and accessories,” said Al-Nutaifi.
“With better servicing facilities, Saudi car owners are keeping their vehicles longer and with the increase in vehicle life, the market for spare parts, particularly brake parts and batteries, is experiencing double digit growth. Last year replacement vehicle components accounted for over 60% of automotive aftermarket imports,” he added.
AAME features over 150 vehicle spare parts, component and accessory manufacturers and suppliers, from North and South America, Europe, the Middle and Far East and Australasia. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
