NEOM, Qiddiya, and Diriyah among projects attracting UK investor interest
Updated 01 October 2024
ARAB NEWS
RIYADH: Saudi Arabia has garnered strong interest from British investors in its renewable energy sector and sustainable infrastructure, aligning with its Vision 2030 for green initiatives in environmental projects.
This came at the UK-Saudi Sustainable Infrastructure Summit in London on June 24, where opportunities within the Kingdom’s top five projects — NEOM, Qiddiya, the Red Sea Project, ROSHN, and Diriyah — were highlighted, the Saudi Press Agency reported.
These initiatives are part of the Kingdom’s broader commitment to ambitious climate goals, which include reducing carbon emissions by 278 million tonnes annually by 2030 and increasing renewable energy generation capacity by 50 percent.
Hosted by the Saudi British Business Council in collaboration with the Saudi Chambers of Commerce and City of London Corporation, the summit brought together over 250 leaders from the industry and financial sectors of both countries, along with key representatives from these giga-projects.
The event also placed a strong emphasis on financing and green technologies in an effort to achieve net-zero emissions.
Discussions focused on the significance of Saudi-British cooperation in sustainable infrastructure development, advancing toward net-zero emissions, bridging investment gaps, and the role of public-private partnerships.
It also focused on innovative financing models including green bonds and sustainability-linked loans, as well as smart urban planning to achieve sustainability goals and implement large-scale projects using innovative low-carbon technologies.
The Saudi British Business Council, the Saudi British Sports Investment Forum, and the real estate and finance sectors held sector-specific working group meetings after the summit to discuss ambitious plans for developing the sports sector and investment landscape in the Kingdom and the UK.
A high-level delegation from the Kingdom, led by the Federation of Saudi Chambers and the Ministry of Investment, attended the event.
During his participation, the Minister of Investment Khalid Al-Falih discussed in a panel session the strategic partnership between the two countries in sectors of mutual interest and the development of the investment environment since the launch of Saudi Vision 2030.
The summit came at a time when the two nations’ economic relations are expanding, and the UK is Saudi Arabia’s 25th largest commercial partner.
In late 2022, both nations signed an agreement to strengthen their collaboration in green finance as the Kingdom increasingly seeks support for its massively transformative projects.
Lucid’s move into Alkhobar marks a new phase in Saudi Arabia’s EV transition
Updated 38 min 17 sec ago
Waad Hussain
ALKHOBAR: Lucid opened its first showroom in Alkhobar on Dec. 5, completing its presence across Saudi Arabia’s three largest regions and underscoring the rapid progress of the Kingdom’s electric-mobility push under Vision 2030.
The new Eastern Province location targets one of the nation’s highest-spending markets and reflects the deepening US-Saudi partnership behind Lucid in manufacturing, research and development, and talent.
For the EV maker, the move reflects pure market demand, according to interim CEO Marc Winterhoff.
“We didn’t have any coverage of the eastern region. It’s the third-largest market in KSA, and therefore it’s important for us to be here as well, closer to our customers,” he said.
Saudi Arabia has become one of Lucid’s most critical markets globally, not only as a buyer, but as a manufacturing base and a long-term strategic partner.
Winterhoff said the company is “super important in all of those categories,” highlighting how the Public Investment Fund’s backing enabled Lucid to grow jobs in the US while establishing its first international facility in the Kingdom.
“It’s widely known that we are majority funded by PIF, meaning the Kingdom of Saudi Arabia, which enabled us to build actually a lot of jobs in the US. Over 90 percent of our jobs … are in the US,” he said.
Lucid interim CEO Marc Winterhoff. Khalil Alazwari
At the same time, Lucid is expanding its assembly plant in King Abdullah Economic City and preparing to hire “thousands of people” as it ramps up production by the end of next year.
Alignment with Vision 2030, particularly the shift toward sustainability and the creation of entirely new industries, is becoming a defining pillar of Lucid’s strategy in the Kingdom. “Our vision is very much aligned with Vision 2030,” Winterhoff said.
He pointed to the emergence of a Saudi automotive cluster for the first time, with Lucid among the first manufacturers and others now entering the market. “There was no automotive industry before … and yeah, that wouldn’t be possible without the support.”
Regionally, Lucid Middle East President Faisal Sultan said the Gulf is entering a new phase of EV adoption driven by consumer readiness and government action.
“The whole country is going through a transformation right now. There is a renewed focus on sustainability and diversification to non-oil GDP,” he said.
While global supply chain issues briefly slowed EV momentum, demand in Saudi Arabia is now growing faster than in several other GCC countries.
Sultan said the Alkhobar showroom will play a direct role in accelerating adoption by exposing more customers to the vehicles.
“Once the customer is inside the car and sees a beautiful car that has amazing performance attributes, then the conversion is a sure deal,” he said.
Market behavior also shaped the decision to expand east. Many Eastern Province customers had been traveling to Riyadh to buy vehicles, a barrier Lucid sought to address. “It is a little bit of an inconvenience … so we really needed to be here,” Sultan explained.
The location’s economic weight also played a role. “There’s a lot of buying power here, and Lucid vehicles are a highly technological luxury vehicle. So it is the right place for Lucid to be.”
On charging, Lucid is working on a two-track approach: building infrastructure and educating customers. The company is pushing back against common assumptions around range anxiety by highlighting its vehicles’ capabilities.
“We are the longest-range vehicle in the world — 835 (km) to 838 km on a single charge,” Sultan said. He added that many drivers can travel from Alkhobar to Riyadh and might even go back on one charge.
The Lucid Air showcased inside the new Alkhobar studio. Khalil Alazwari
Lucid now provides a free home charger and free installation with every purchase, ensuring most customers rarely run low on battery in daily use.
The company is also expanding public charging through partnerships with hotels and offices. “We have about 50 of them across the country, and anybody can use it,” he said.
The localization push, a major pillar of Vision 2030, is another area where Lucid is scaling quickly. “We are 70-plus percent Saudized. That is an amazing feat because we are a technological company,” Sultan said.
The firm is also investing in a new R&D center in Riyadh, training Saudi engineers in the US through Human Resources Development Fund’s programs, and building a talent pipeline with institutions including KAUST, King Abdullah Economic City’s training academy NAVA, and technical universities.
Sultan said this effort is essential as the plant transitions next year from assembly to a complete build-unit factory with a planned annual capacity of 150,000 vehicles.
“You’re gonna need a large workforce,” he said. “This is all in preparation to localize the workforce and having the right skills available.”
With the Eastern Province now covered, Lucid’s footprint matches the Kingdom’s three economic engines: Riyadh, Jeddah, and Alkhobar, positioning the company at the center of Saudi Arabia’s EV transition.
And as both executives made clear, the Kingdom is not just a sales market for Lucid, but a core part of its global future.
