Advancing Automotive Technologies to Support Saudi Arabia’s Smart Mobility Vision
Issues
The cluster faced slow technology adoption, fragmented R&D capabilities, and limited visibility on global automotive innovation trends. There was little alignment between local component production and next-generation vehicle demands such as ADAS, battery systems, or connectivity modules. Skills gaps and insufficient collaboration with academic and OEM partners further limited competitiveness. Export opportunities were missed due to lack of compliance with international tech standards.
Solution
We created a strategic roadmap for automotive technology transformation covering innovation, capability development, and supply chain readiness. This included identifying high-potential components (battery modules, sensors, ECUs), designing a tech transfer framework, and recommending partnerships with global Tier 1 suppliers. Skill development tracks were integrated into the roadmap, alongside incentives for domestic R&D labs, pilot production, and certification programs.
Approach
- Conducted global benchmarking on connected/autonomous vehicle technology clusters
- Performed capability mapping of local manufacturers and export-readiness
- Identified 6 high-value component categories for tech localization
- Designed tiered support programs for R&D, compliance, and prototyping
- Proposed industrial-academic joint labs for automotive software testing
- Advised on certification pathways aligned with EU, US, and GCC regulations
- Built simulation models to validate tech scalability and market demand
Recommendations:
- Focus investment on battery management systems and lightweight materials
- Facilitate IP licensing agreements with overseas innovation centers
- Establish innovation incubators near industrial zones for rapid prototyping
- Develop training programs in embedded systems and EV architecture
- Incentivize shared testing facilities to reduce prototyping costs for SMEs
- Align national standards with international EV/AV tech benchmarks
Engagement ROI
Within 12 months, three pilot facilities were launched for EV component testing, resulting in a 22% reduction in prototyping costs. Two new export contracts were secured with regional OEMs. Local R&D spending increased by SAR 18 million, and over 120 engineers were trained in embedded systems. The cluster’s readiness index improved from 2.7 to 4.1 on a 5-point scale.
