Saudi Arabia’s NICDP inks MoU with Toyotaby Fatima De La Cerna on Mar 15, 2017
The National Industrial Cluster Development Program (NICDP) has signed a memorandum of understanding (MoU) with Toyota Motor Corporation, for a feasibility study of an industrial project that would produce vehicles and car parts in the country.
According to a Saudi Press Agency report, the memorandum was signed in Tokyo by Dr Ibrahim Al-Assaf, Saudi Minister of State and Cabinet Member, on behalf of Eng Khalid Al-Falih, Saudi Minister of Energy, Industry, and Mineral Resources, and chairman of NICDP’s Board of Directors; and Takeshi Uchiyamada, chairman of the Board of Directors of Toyota. The signing was made on the sidelines of the visit being paid by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud to Japan.
The signing of the agreement and the planned feasibility study are said to be part of NICDP’s plans for the development of a globally competitive automotive industry in country. It also confirms the intent of both parties to continue with the evaluation of the project as part of Saudi 2030 vision.
The study will evaluate the development of a local supply base using materials produced by major Saudi companies like Sabic, Maaden, and Petro Rabigh. It will also look into attracting talented Saudi workforce and putting in place adequate training programs.
Toyota reportedly remains the automotive leader in Saudi and other GCC car markets, with more than 500,000 units sold in the region in 2016.