Laith Al-Obaidi & Brothers Automotive Group plans to build a car factory in Saudi Arabia, with investments estimated at around SAR 200 million. The plant would produce and assemble more than six economy car models priced between SAR 60,000 and SAR 110,000, according to Ahmed Al-Obaidi, Chairman of the Group’s Board of Directors, speaking to Al Eqtisadiah.
He said the move “aims to expand the options available to consumers and support the localization of the automotive industry and its related industries.”
He explained that the proposed investment study is based on a factory that would begin with assembly under the “DKD” system and then move to the “SKD” system. This would allow production and manufacturing capabilities to be built up gradually and widen the range of components that can be made locally. The plant could produce and assemble more than six models, including electric vehicles, plug-in hybrids and conventional internal combustion engine cars.
Affordable Cars Matched to Consumers’ Purchasing Power
Al-Obaidi said one of the project’s main goals is to offer affordable cars that suit the purchasing power of a broad segment of consumers. He noted that target prices start at SAR 60,000 and go up to SAR 110,000. By his estimate, some locally manufactured cars start at prices above SAR 400,000.
On local content, he said the project creates opportunities to localize several feeder industries for the automotive sector. These include making front and rear bumpers, plastic parts, seats and leather upholstery, glass, and interior trim and components. This would help build local supply chains, create new investment and industrial opportunities, provide quality jobs and transfer technical know-how.
Exploring Cooperation and Partnership Opportunities
He noted that the study sets out a complete vision of the project from investment, technical and manufacturing perspectives. He said he hopes to present it to the relevant authorities and investors in Saudi Arabia and to explore cooperation and partnerships to carry out the project, drawing on the Group’s experience in regional markets.
Al-Obaidi said the Group has more than 60 years of experience in the automotive sector and operates in several regional markets, including Jordan, Saudi Arabia and Syria. Its activity in Jordan spans about 20 years. It began with investment in renewable energy before expanding into sustainable transport and modern automotive technologies.
He added that “the Group employs more than 600 staff with specialized expertise, and has a training and qualification system aimed at developing young people’s skills in modern and advanced technology.” He stressed that the Group does more than trade cars: it also aims to take part in the shift toward a more sustainable future for transport.
Al-Obaidi said a factory producing economy cars is an opportunity to add variety to the Saudi market, broaden the local manufacturing base and give consumers new options, supporting the growth of the automotive sector and its related industries.
