The Saudi Basic Industries Corporation (SABIC) has inked a landmark deal with the joint venture between the Public Investment Fund (PIF) and Pirelli, securing the supply of polybutadiene rubber and carbon black to produce 3.5 million tyres annually. 

 

The move marks a major milestone in boosting local content under the Kingdom’s NUSANED localization initiative.

 

The agreement, signed on the first day of the PIF Private Sector Forum 2026 in Riyadh, is the first of its kind, supplying raw materials for car tires produced locally at a plant in the King Salman Automotive Cluster at King Abdullah Economic City. A bespoke Saudi trademark will be launched, providing tires for passenger vehicles and car manufacturers in the region, complementing Pirelli’s global offerings.

 

The fourth edition of the Forum has become a hub for collaboration, connecting PIF companies, government agencies, investors, and private sector firms. It aims to facilitate new partnerships and drive projects that empower the private sector. 

 

The Forum “provides an effective platform to explore promising opportunities that support business growth and help shape the future of the Saudi economy, in line with the goals of Saudi Vision 2030.”