The Jazan Chamber of Commerce and Industry (JCCI) has signed a cooperation agreement with China’s Xincheng Jiao Technology to establish an advanced vehicle manufacturing facility in Saudi Arabia, representing an investment of approximately €10 billion ($11.6 billion) over 15 years.
The initiative seeks to strengthen industrial cooperation between Saudi Arabia and China while advancing the localization of the modern vehicle industry in the Kingdom, in alignment with the goals of Saudi Vision 2030.
The planned facility will be located in the Jazan region, a key industrial and logistics hub on the Red Sea designated by the Saudi government for strategic development.
The project is expected to generate thousands of employment opportunities, promote technology transfer, and accelerate the creation of a domestic automotive supply chain.
Although specific timelines have not yet been disclosed, the plant is expected to encompass comprehensive manufacturing operations, including vehicle assembly, component production, and research and development of advanced mobility technologies.
Xincheng Jiao Technology, a Chinese company specializing in advanced automotive and industrial innovations, has been expanding globally, and this marks its first major investment in the Middle East.
Industry observers view the project as evidence of Saudi Arabia’s growing attractiveness to international manufacturers seeking to participate in the Kingdom’s industrial diversification and innovation agenda.
The partnership also aligns with national efforts to attract foreign direct investment in high-value sectors such as clean energy, mobility, and technology.
For Jazan, the agreement represents a major step toward establishing itself as a leading manufacturing hub. The region is already home to large-scale industrial projects, including the Jazan City for Primary and Downstream Industries, a key component of Saudi Arabia’s broader economic diversification strategy.
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