The Jazan Chamber of Commerce and Industry (JCCI) has signed an agreement with China's Xincheng Jiao Technology to establish a modern vehicle manufacturing facility in the Saudi Southern province, with around $11.6 billion worth over a period of 15 years.

This is the Chinese firm’s first major investment in the Middle East.

The new plant will be set up in the Jazan region, which has been earmarked by the Saudi government as a key industrial and logistics hub on the Red Sea.

The project is expected to create thousands of jobs, boost technology transfer, and support the growth of a domestic automotive supply chain.

While detailed project timelines were not disclosed, the facility will reportedly cover the full spectrum of vehicle manufacturing operations, including assembly, component production , and research activities aimed at developing advanced mobility technologies.

Xincheng Jiao Technology specializes in advanced automotive and industrial technologies and has been expanding its international footprint in recent years.

JCCI said the agreement aims to enhance industrial cooperation between Saudi Arabia and China and to localize the modern vehicle industry in the Kingdom, in line with the objectives of Saudi Vision 2030.

On 29 October, Saudi Press Agency said that during a conference organized by the Jazan Chamber in Guangzhou to promote investment opportunities in China, 14 memorandums of understanding (MoUs) were signed by Saudi companies and 30 MoUs by Chinese companies, aimed at enhancing cooperation and investment across various economic sectors.

In addition, three major agreements were signed, marking a significant advancement in industrial collaboration between the Kingdom and China.