Saudi Arabia is shifting gears and racing into the EV future

Saudi Arabia is focused on creating a comprehensive EV ecosystem, and the government is aiming for 30 percent of vehicles in Riyadh to be electrified by 2030. (AFP)
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Updated 16 March 2025
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Saudi Arabia is shifting gears and racing into the EV future

  • Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030

RIYADH: Long known for its oil industry, Saudi Arabia is now racing toward an electrified future, not just for sustainability reasons, but also to get ahead in this trillion-dollar market.

With billions of dollars being poured into infrastructure, cutting-edge technology and supply chain localization, the Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030 road map.

Saudi Arabia is focused on creating a comprehensive EV ecosystem, and the government is aiming for 30 percent of vehicles in Riyadh to be electrified by 2030.

This strategy has seen the Kingdom invest in US-based EV manufacturer Lucid through its Public Investment Fund, as well as creating its homegrown electric vehicle brand, Ceer — set to launch its first models in 2026.

Big bets and bold moves: Saudi Arabia’s investment in EVs

Saudi Arabia’s commitment to economic diversification is evident in its substantial investments in EV production and battery supply chains.

Heiko Seitz, PwC Global and Middle East eMobility leader, told Arab News that the Kingdom is prioritizing the development of a self-sufficient automotive supply chain as a key strategy to solidify its position in the global EV industry.

He added: “Through significant investments, such as $3.4 billion in Lucid Motors to produce 155,000 EVs annually and a $5.6 billion agreement with Human Horizons, the Kingdom is attracting global automakers and building a competitive manufacturing base.”

Seitz highlighted the $9 billion allocated to EV-related materials, including $900 million from EV Metals and $126 million from Ivanhoe Electric, as evidence that the Kingdom is leveraging its $2.5 trillion in untapped mineral reserves to ensure it has access to the critical resources needed for production.

Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors, told Arab News that Saudi Arabia is taking a comprehensive approach to boosting EV adoption by developing a widespread charging network through public and private partnerships with leading technology providers.

“These investments in charging infrastructure are complemented by large-scale renewable energy projects, including solar and wind farms, which will provide clean energy for EV charging,” said Jameel.

He added: “Additionally, the government is introducing regulatory frameworks, financial incentives and policy support to accelerate EV adoption among consumers. These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.”

The Kingdom is already working on integrating artificial intelligence and automation into the automotive sector, ensuring a more efficient production process.

As part of these efforts, Saudi Arabia is fostering partnerships with global tech firms to enhance the digital infrastructure required for smart mobility solutions.

The integration of AI-driven analytics in EV production will help in optimizing supply chain management and improving vehicle efficiency, positioning Saudi Arabia at the forefront of next-generation mobility innovation.

EVs, fast chargers and a high-tech future

Saudi Arabia is not solely relying on the government to propel the EV industry forward. It is keen to work with the private sector to ensure the sector has solid foundations to blossom.

Ahmad Al-Tawbah, CEO of Motory, told Arab News that private sector expertise in technology and operations is being complemented by public investment in infrastructure, policies and incentives. 

Through significant investments, the Kingdom is attracting global automakers and building a competitive manufacturing base.

Heiko Seitz, PwC Global and Middle East eMobility leader

“In Saudi Arabia, initiatives like the establishment of advanced manufacturing zones, such as NEOM and KAEC, showcase how PPPs can create a thriving ecosystem for automotive assembly, EV production and battery manufacturing,” he said.

Al-Tawbah added that PPPs are crucial in reshaping the supply chain ecosystem.

“They encourage local suppliers to integrate into the global automotive value chain, fostering the growth of local industries, such as component manufacturing and logistics,” he added.

By focusing on localized production, these partnerships help decrease reliance on imports while strengthening Saudi Arabia’s role in regional supply chains. This approach not only satisfies domestic demand, but also enhances the Kingdom’s position as a key export hub for the Middle East and beyond.

Powering jobs and turbocharging the economy

Saudi Arabia’s booming EV sector is not just about seeing cars on the road; it also has the potential to deliver tens of thousands of jobs in engineering, manufacturing, logistics and software development — directly supporting Vision 2030’s objective of increasing employment.

Abdul Latif Jameel Motors’ Jameel said: “Additionally, the automotive ecosystem will provide opportunities for local entrepreneurs and small businesses to participate in the supply chain at all levels of manufacturing, distribution and related logistics, contributing to economic growth and innovation within the sector.”

Ceer Motors, the first Saudi automotive brand, is projected to create 30,000 jobs by 2034, contributing about $8 billion to gross domestic product.

“The Kingdom is investing heavily in workforce upskilling, with over 600,000 Saudis set to benefit from education and training programs,” Seitz said.

Additionally, Saudi Arabia is collaborating with leading universities and research institutions to develop specialized programs in EV technology, battery science and smart mobility solutions.

These initiatives are designed to equip the local workforce with the expertise needed to drive innovation in the automotive sector and position Saudi talent at the heart of future developments.

Luring big players and powering up local brands

As part of its focus on the industry, Saudi Arabia is rolling out the red carpet for global automakers while giving homegrown brands a serious boost.

With enticing financial perks and smart policies, the Kingdom is making it hard for car giants to say no. “Programs like the $2.6 billion Standard Incentives Program provide funding of up to 35 percent of project investments — capped at SR50 million ($13.33 million) per project. Additionally, Lucid Motors received $3.4 billion in financing over 15 years to establish a plant targeting 155,000 EVs annually,” Seitz said. 

These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.

Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors

He added: “The PIF has also invested $1 billion in Lucid and is backing Ceer Motors. These financial incentives, coupled with regulatory frameworks such as industrial licensing and quality standards certification, create a supportive ecosystem for both international and local manufacturers.”

The Kingdom’s automotive strategy extends beyond production to include research and development in next-generation mobility solutions.

“We’ve teamed up with KAUST and Toyota to push hydrogen fuel research forward, launching Saudi Arabia’s first hydrogen-powered taxi pilot with the Toyota Mirai — big steps toward a cleaner, high-tech transport future,” Jameel said.

Competing on the global stage and challenges

Saudi Arabia is not just joining the global electric vehicle race; it is aiming for pole position. With massive investments, a prime geographic location and a strategy that blends innovation with economic muscle, the Kingdom is shifting gears fast.

“Coupled with the Kingdom’s geographic advantage as a gateway to Asia, Europe and Africa, these efforts are positioning Saudi Arabia as a key export hub for the automotive sector,” Seitz said.

Scaling up Saudi Arabia’s automotive sector also has its own hurdles, but the Kingdom has a game plan.

“To address the lack of a local supply chain, incentives are attracting global suppliers and fostering component manufacturing. Workforce development is a priority, with programs like NAVA training over 600,000 citizens in advanced automotive technologies,” said Seitz.

Another crucial piece of the puzzle, infrastructure expansion, is being “rapidly developed,” Seitz said, highlighting plans to install 5,000 EV fast chargers by 2030 through the Electric Vehicle Infrastructure Co. — a joint-venture company between the PIF and Saudi Electricity Co.

Regulatory frameworks are also being aligned with international standards, while purchase incentives and awareness campaigns are encouraging more drivers to go electric.

Seitz said that investment in Lucid alongside partnerships with global players like Foxconn and Hyundai show that Saudi Arabia is overcoming challenges to solidify its position as a “global automotive powerhouse under Vision 2030.”


Radisson doubles down on Saudi Arabia with aggressive hotel expansion

Updated 13 May 2025
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Radisson doubles down on Saudi Arabia with aggressive hotel expansion

RIYADH: Saudi Arabia now accounts for half of Radisson Hotel Group’s Middle East portfolio, as the Kingdom cements its role as a global priority for the hospitality giant. 

The company currently has 100 hotels either open or under development across the region, with 50 of them located in Saudi Arabia, revealed Radisson’s top executive in an interview with Arab News on the sidelines of the Future Hospitality Summit in Riyadh. 

The expansion aligns with Saudi Arabia’s fast-growing hotel sector, as the Kingdom plans to add more than 362,000 new hotel rooms by 2030, backed by a $110 billion investment. 

Elie Younes, executive vice president and global chief development officer at Radisson, said: “Saudi Arabia sits in one of the top five countries for us globally.”  

He said that of the 50 hotels in Saudi Arabia, 30 are open and 20 are under construction. 

Providing details and a timeframe for their planned 20 hotels in Saudi Arabia, Younes said the projects will be rolled out over the next three to four years, with an additional 30 hotels expected to open in the following three to four years. 

The new wave of properties will translate into approximately 4,000 to 5,000 rooms. “If you multiply 20 by 200 to 250, you will get 4,000 to 5,000 rooms currently planned under construction in Saudi Arabia, which will eventually also make an economic impact because that will create job opportunities for approximately 5,000 people,” said Younes. 

Radisson is also ramping up its presence in the capital. The company recently opened Radisson Blu Minhal in Riyadh and plans to launch its third Radisson Collection hotel in the city soon.  

The Mansard Hotel, part of its urban portfolio, was noted as the brand’s first resort in Riyadh. Service apartments under the Radisson Collection brand are expected to open in the next four months. 

The group sees strong potential across multiple segments. “There is room for another 10 to 15 Radisson Blu hotels. As for Radisson Collection, which is our entry-level luxury brand, there will be fewer opportunities to grow it because of its luxury nature — maybe four or five more hotels. We already have three in Riyadh alone,” he said. 

Younes highlighted the scalability of the core four-star Radisson brand, particularly in smaller Saudi cities.  

“We recently opened three of them here in Riyadh alone, and I think we could open at least or sign another 20 or 30 of them in the Kingdom across the next four to five years, focusing on places like Riyadh, Jeddah, Makkah, and Madinah… to some extent, and specifically, after that, in some of the secondary regional cities, where we also see opportunities for business development,” he explained. 

Commenting on global tariffs, Younes said it is difficult to assess the impact of what he described as a “semi-political, semi-non-political” decision. 

 “We don’t see that to have a direct impact in Saudi Arabia because — you have to remember that — over 50 percent of the travel industry in Saudi Arabia is domesticated in terms of traveling, and over 90 percent of investments in Saudi Arabia comes from Saudi Arabia,” he added. 

Younes also spoke about broader trends in the hospitality industry, including growing traveler volumes and a heightened focus on sustainability. “I think we are very lucky and should be grateful to work in this industry because it is one of those ever-growing industries,” he said. 

He noted shifts in travel behavior as business and leisure increasingly merge: “People going for a long business trip but integrating into that trip a little bit of fun, bringing the wife, bringing the kids, spending the extra day. Wanting to have fun.” 

The executive noted that operational challenges are mounting, driven by rising costs and technological disruption. “The cost of labor going up. Inflation going up. The influence of artificial intelligence. All of these elements will push us and will result in us becoming more efficient,” he said. 

While artificial intelligence will likely shape back-end operations, Younes emphasized the enduring value of human service: “The human touch will never go away. We all know that.” 

Looking ahead, he sees the convergence of hospitality and residential real estate as a key evolution in the sector.

“I see more integration and fusion between the conventional hospitality and residential real estate as we move forward to try and achieve all of these efficiencies and economies,” he concluded. 


Closing Bell: Saudi main index closes in green at 11,532 

Updated 13 May 2025
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Closing Bell: Saudi main index closes in green at 11,532 

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for the second consecutive day, gaining 43.62 points, or 0.38 percent, to close at 11,532.27.

The total trading turnover of the benchmark index reached SR5.37 billion ($1.43 billion), with 120 listed stocks advancing and 121 declining.

The Kingdom’s parallel market Nomu also closed higher, rising 585.86 points to end at 27,928.99.

Meanwhile, the MSCI Tadawul Index edged up 0.41 percent to close at 1,474.55.

The best-performing stock on the main market was Saudi Arabia Refineries Co., whose share price jumped 9.85 percent to SR65.80.

Zamil Industrial Investment Co. also saw gains, with its stock rising 7.73 percent to SR47.40.

ARTEX Industrial Investment Co. recorded a 4.35 percent increase, closing at SR13.44.

On the other hand, Gulf General Cooperative Insurance Co. saw its share price decline by 6.45 percent to SR7.11, making it one of the worst performers of the day.

On the announcements front, Al-Babtain Power and Telecommunication Co. reported a net profit of SR88.2 million for the first quarter of 2025, a 6.77 percent increase compared to the same period last year.

The company attributed the rise to improved productivity, cost reductions, and stronger profit margins. Its share price rose 1.45 percent to SR49.

Tabuk Cement Co. posted a 28.35 percent year-on-year decline in net profit for the first quarter, reaching SR13.04 million.

In a statement to Tadawul, the company cited a decrease in sales and other income as the primary reasons for the drop. Its stock fell 0.50 percent to SR11.90.

Riyadh Cement Co. reported a net profit of SR75.68 million for the first quarter, up 7.95 percent from the same period a year earlier, driven by increased sales volume and higher average selling prices. Its share price rose 0.45 percent to SR33.35.

Arabian Drilling saw its net profit plunge 48.63 percent year on year to SR75 million in the first quarter. Its stock declined 1.78 percent to SR82.90.

Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, reported a net profit of SR1.8 million for the first quarter, reversing a net loss of SR151.7 million in the same period last year.

The company credited favorable seasonal dynamics and a continued focus on operational efficiency for the turnaround. Cenomi Retail’s share price rose 2.71 percent to SR15.94.

Al-Jouf Agricultural Development Co. reported a net profit of SR34.65 million in the first quarter, up 5.26 percent year on year. Its share price increased 1.76 percent to SR49.15.


Aramco to sign MoUs with NextDecade, Sempra for 6.2m tonnes of LNG

Updated 13 May 2025
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Aramco to sign MoUs with NextDecade, Sempra for 6.2m tonnes of LNG

RIYADH: Saudi Aramco will sign on Tuesday memoranda of understanding with US liquefied natural gas producer NextDecade and utility firm Sempra , Aramco’s chief executive said, as the oil giant expands in the LNG market.

“The US today, in terms of gas, is almost 100 billion (dollars) in sales ... and it is continuously increasing,” Aramco’s CEO Amin Nasser told the US-Saudi Investment Forum in Riyadh.

“The US is really a good place to put our investment,” he added, noting that under the MoUs Sempra and NextDecade would supply around 6.2 million tonnes of LNG to Aramco.

The US is already the world’s largest exporter of LNG and producers have plans in place that would double capacity in coming years.

NextDecade last month signed a deal with a subsidiary of Aramco, which is seeking to become a big player in the LNG market, under which the US firm will supply the superchilled gas from its Rio Grande facility for 20 years.

“We do have other investments. So we’re looking at, by 2030, almost seven and a half million tons of LNG,” Nasser noted, speaking of expansion plans.

Nasser also said that one of the investments that Aramco plans to sign on Tuesday involved an expansion of the Motiva Port Arthur’s refinery in the US, noting the oil giant would invest $3.4 billion in the refinery.


SMEs account for 30% of listed companies in Saudi Arabia: CMA chief 

Updated 13 May 2025
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SMEs account for 30% of listed companies in Saudi Arabia: CMA chief 

JEDDAH: Small and medium enterprises now constitute 30 percent of listed companies in Saudi Arabia, following significant efforts by the Capital Market Authority to streamline the listing process and enhance the parallel market, according to CMA Chairman Mohammed El-Kuwaiz.

Speaking during “Finance Week” at the SME Support Council — an event organized by the Small and Medium Enterprises General Authority, also known as Monsha’at — El-Kuwaiz underscored the regulator’s commitment to broadening financing options and encouraging more SMEs to enter the capital market.

According to the Saudi Press Agency, El-Kuwaiz highlighted the 2017 launch of the parallel market, Nomu, as a major milestone in expanding access for smaller firms. Since then, 14 companies have successfully moved from Nomu to the main market, underscoring the strength of the investment ecosystem.

The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan.

El-Kuwaiz noted that the Nomu index has grown tenfold since its inception, with market capitalization soaring 26 times to nearly SR60 billion ($16 billion) by the end of 2024. Liquidity has also surged, with trading values reaching approximately SR14 billion this year — an eightfold increase.

To further ease capital market access, the CMA has introduced a suite of new tools, including direct listings and regulatory simplifications, in collaboration with strategic partners. As a result, companies now have access to nine distinct financing options, most of which were developed in recent years.

The CMA chief also pointed to the rapid growth of the fintech sector within capital markets, with revenues more than doubling — up 105 percent compared to 2023.

He emphasized the growing importance of credit ratings and evaluations in securing financing, particularly through debt instruments, which are increasingly vital for fostering sustainable growth in the financial sector.


Jordan’s industrial index rises 2.73% in Q1 2025: official data

Updated 13 May 2025
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Jordan’s industrial index rises 2.73% in Q1 2025: official data

RIYADH: Jordan’s industrial production index climbed 2.73 percent year on year in the first quarter of 2025, reaching 87.62 points, driven by robust growth in manufacturing and electricity output, according to data released by the Department of Statistics.

Manufacturing production rose 3.2 percent during the first three months of the year, while electricity output increased 4.97 percent, the Jordan News Agency, Petra, reported. However, the extractive industries sector declined by 8.03 percent over the same period.

The rise in industrial activity comes as Jordan’s inflation rate accelerated by 2.21 percent annually during the first two months of 2025, fueled by rising prices in several key commodity groups.

The upward trend in the index was also reflected in January’s figures, which showed a 2.76 percent annual increase to 88 points.

In March alone, the industrial index grew by 1.73 percent year on year, reaching 87.62 points compared to 86.13 points in March 2024. Petra noted this growth was supported by a 3.38 percent increase in manufacturing and a 4.02 percent rise in electricity production, despite a sharp 23.89 percent decline in extractive industries.

Month on month, the index rose 0.44 percent from February to March, increasing from 87.24 to 87.62 points. During this period, the extractive sector rebounded with a 9.96 percent increase, while manufacturing inched up 0.41 percent. The electricity sector, however, contracted by 7.18 percent.

Meanwhile, Fitch Ratings earlier this month affirmed Jordan’s long-term foreign currency issuer default rating at “BB-” with a stable outlook, citing macroeconomic stability and ongoing fiscal and economic reforms.

The US-based agency highlighted Jordan’s resilient financing environment, supported by a well-capitalized banking sector, a robust public pension fund, and sustained international assistance.

Despite the stable outlook, Jordan’s credit rating remains lower than several of its regional peers. In February, Fitch reaffirmed Saudi Arabia’s rating at “A+” with a stable outlook and the UAE’s at “AA-.”

A “BB” rating indicates a higher vulnerability to default risk in the event of unfavorable economic or business conditions, although some financial flexibility remains.