Experts call for enhanced incentives to boost EV adoption at Saudi auto show

Experts at a panel discussion titled ‘Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution.’ AN photo
Short Url
Updated 17 September 2024
Follow

Experts call for enhanced incentives to boost EV adoption at Saudi auto show

  • EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology

RIYADH: The Saudi government holds the key to developing the necessary infrastructure for electric vehicles, a top official said on the first day of the EV Auto Show underway in Riyadh.

Speaking at a panel discussion titled “Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution,” Mansour Al-Makahlas, head of the eMobility division at Solutions Valley, a part of Saudi Electric Co., outlined the essential steps needed to advance the market.

Al-Makahlas stressed the importance of expanding charging infrastructure to encourage participation from chief product officers.

“In order to attract users to come to Saudi (Arabia) or to buy this vehicle, they need to release the incentive. They need to build more charging stations; they need to support the CPO to get into this market.”

He continued:, “There must be an incentive from the government, such as the case in Europe and the US. CPOs know that the return on investment is long-term. It’s not short-term. So an incentive must be there.”

During the same discussion, Alhareth Al-Hisan, founder and CEO of iCharge, noted that Saudi Arabia has a strong foundation for EV adoption globally. “It has the grid capacity, it has the political will, and it has the ability for the customer to spend on the expensive electric vehicle.”

Al-Hisan pointed out that planning is a primary concern in the regional EV industry and suggested that Saudi Arabia could benefit from Europe’s approach to infrastructure development. “When the infrastructure for electric vehicles started in Europe, it was heavily planned and very detailed where to place them, how to place them,” he said.

Wolfgang Ademmer, chief marketing officer at the sustainable mobility firm Alpitronic, also encouraged Saudi Arabia to follow Europe’s lead. “There’s a learning from Europe for other markets. I’m always a big fan of shortcutting learning curves, and we can do this in Saudi Arabia.”

Ademmer emphasized the need for a comprehensive plan to support industry participants and ensure their success in the EV sector. “Coming up with a clear plan, giving confidence to all market players, including those inherently starting the business right now. Encourage them to stay and invest with the right guidelines, and then also convince, subsequently, the users, the car drivers, to use and to drive EVs.”

Li Bo, vice president of Huawei Digital Power Strategy and Marketing for the Middle East and Central Asia, and director of Huawei EV Charging Business for the same region, predicted a rise in the vehicle-to-EV charging ratio.

Li noted that renewable energy development is advancing in Saudi Arabia and expects that new regulations will lead to a greater focus on renewable sources and storage solutions for EV charging stations.

Toward the end of the panel discussion, Al-Makahlas predicted significant growth in the EV market. “So, I believe that the market will double by next year. You will be shocked by next year; I can guarantee you.”

The EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology. The exhibition serves as a key event for the Kingdom’s burgeoning EV ecosystem, attracting 10,000 attendees from 50 countries, including industry leaders, automotive manufacturers, charging solution providers, and policymakers, to discuss the future of mobility in the region.


School, hotel outlays keep Saudi POS weekly spending above $3bn: SAMA

Updated 13 sec ago
Follow

School, hotel outlays keep Saudi POS weekly spending above $3bn: SAMA

RIYADH: Spending on education in Saudi Arabia increased by 4.3 percent for the week ending Jan. 10, while hotel outlays saw a 0.9 percent increase, aiding the total weekly spending to stay above $3 billion.

According to the latest data from the Saudi Central Bank, the overall point-of-sale value dropped 16.6 percent to SR14.2 billion ($3.79 billion) with transactions representing a 7.3 percent week-on-week decrease to 236.7 million.

This week saw negative changes across all the remaining sectors.

Spending in the freight transport, postal, and courier services sector saw the biggest decrease at 35.9 percent to SR47.60 million, followed by telecommunications, which posted a 26.2 percent drop to SR188.42 million.

Expenditure on apparel and clothing saw a fall of 19.3 percent to SR1.3 billion, followed by an 18.3 percent decrease in spending on books and stationery. Jewelry outlays saw a 22.3 percent decrease to reach SR422.54 million.

Spending on car rentals in Saudi Arabia fell by 14.2 percent, while airlines saw a 6.3 percent decrease to SR48.04 million.

Expenditure on food and beverages saw a 23.6 percent decrease to SR2.07 billion, claiming the largest share of the POS. Restaurants and cafes retained the second position despite a 7.3 percent dip to SR1.76 billion.

The Kingdom’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 13.6 percent dip to SR4.85 billion, down from SR5.61 billion the previous week.

The number of transactions in the capital settled at 74.78 million, down 6.1 percent week on week.

In Jeddah, transaction values decreased by 9.5 percent to SR2.02 billion, while Dammam reported a 15 percent decrease to SR707.12 million.

POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in the Kingdom. 

The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. 

The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.