Saudi Arabia will invest SR15bn ($4bn) and hopes to create 3,000 new jobs as it expands rail industry and manufacturing in the Kingdom.
Saudi Arabia Railways (SAR) launched a program in collaboration with the Local Content and Government Procurement Authority (LCGPA) that aims to support the development of the railway industry within the country by ensuring business continuity and contributing to economic growth through the localization of railway manufacturing.
The program, launched by Minister of Transport and Logistic Services Eng. Saleh Al Jasser during his patronage of the opening ceremony of the Saudi Rail Conference and Exhibition in Riyadh, offers investment opportunities for local suppliers and manufacturers to enhance local content and promote economic diversification.
Saudi Arabia Railways investment
The minister emphasised that this program reflects the partnership between SAR and the private sector, in collaboration with the LCGPA. It aims to provide investment opportunities exceeding SR15bn ($4bn) by 2030.
The initiative is part of SAR’s efforts to promote national industry and local content, reaffirming its commitment to empowering Saudi small and medium enterprises (SMEs) to achieve competitiveness in the railway sector.
SAR aims to accomplish this through various supplier development areas, including adopting international best practices to enhance operational efficiency and improving production practices to boost capacity and quality.
The main expected outcomes of the program include achieving the local content targets of Saudi Vision 2030, localising the railway industry in the Kingdom, and developing local human capital.
The program is also expected to create up to 3,000 job opportunities for citizens through investment prospects.
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