Over the past month, Saudi Arabia has accelerated its momentum in advanced manufacturing and logistics with a string of high-value investment deals that underscore the Kingdom’s ambitions to become a global crossroads for trade, industry and innovation. From automotive manufacturing to large-scale logistics parks, the latest wave of projects reflects not just economic diversification under Vision 2030, but a clear strategy to strengthen the Kingdom’s standing in regional and international supply chains.

One of the most significant announcements was the Public Investment Fund’s (PIF) partnership with Hyundai Motor Company to establish an advanced automotive manufacturing facility within the King Salman Automotive Cluster. With PIF taking a majority stake, the plant is set to produce both internal combustion and electric vehicles, marking a pivotal step in building Saudi Arabia’s automotive sector from the ground up. The deal carries more than symbolic weight. Automotive production requires a sophisticated upstream supply chain in metals, electronics and advanced materials. This means that the project will likely generate a ripple effect of benefits for multiple industries, while reducing the Kingdom’s reliance on imports.

Manufacturing diversification is not limited to cars. Alghanim Industries revealed plans for a major pre-engineered buildings and structural steel facility in Sudair Industrial City. With annual production capacity projected at 200,000 metric tonnes, the plant is positioned not just to meet domestic demand but also to export to GCC, Africa and Asia.

In parallel, the Saudi Industrial Investment Company (SIC) announced a partnership with Investindustrial (an international private equity firm) to accelerate investments in advanced manufacturing categories that range from machinery to medical devices. Together, these moves highlight the Kingdom’s determination to localise production capabilities while also becoming a net exporter of high-value industrial goods.

The pharmaceutical and healthcare manufacturing sectors are also attracting attention. A deal worth SAR375M between MODON and French firm BPI will bring new facilities to Sudair City, covering pharmaceuticals, diagnostics and surgical products. This project complements Saudi Arabia’s wider ambition to enhance domestic healthcare resilience and reduce dependence on global supply chains for critical products.

If manufacturing is one side of the diversification coin, logistics is the other. With trade volumes surging and delivery orders surpassing 100 million in just one quarter, Saudi Arabia is rapidly expanding its logistics infrastructure to keep pace. In Dammam, Sultan Logistics signed a SAR200M agreement with the Saudi Ports Authority (Mawani) to build a 197,000-square-metre logistics park at King Abdulaziz Port. The facility will include warehousing, offices, container yards and re-export capabilities. These features are designed to enhance Saudi Arabia’s position as a regional trade hub.

Meanwhile in Jeddah, DP World committed SAR900M to a new logistics park at Jeddah Islamic Port. This project will integrate warehousing and container storage to streamline cargo handling and distribution across the Red Sea, directly boosting the Kingdom’s ability to serve as a gateway between Asia, Europe and Africa. Both logistics parks demonstrate Saudi Arabia’s broader plan to develop nearly 60 logistics zones nationwide by 2030, further embedding the Kingdom into global supply networks.

The confluence of these deals reflects more than a surge in capital spending; it demonstrates growing investor confidence in Saudi Arabia’s regulatory environment and long-term economic direction. Foreign partnerships – from Hyundai to BPI to DP World – show that global firms increasingly view the Kingdom not only as a market to serve, but as a base from which to manufacture, distribute and export.

With investments spanning vehicles, steel, pharmaceuticals and large-scale logistics infrastructure, the Kingdom is building the industrial and logistical backbone required to support sustained growth. The projects are diverse in scope but unified in purpose: to make Saudi Arabia an indispensable node in the global economy.

Get a front-row seat to the exciting developments in the Kingdom and register now to attend WAM Saudi at the Riyadh Exhibition and Convention Centre from 15 – 17 February 2026.