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.”


TASI closes in green at 11,681, gaining 0.82%

Updated 5 sec ago
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TASI closes in green at 11,681, gaining 0.82%

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Wednesday’s trading session at 11,681.11 points, marking an increase of 94.71 points or 0.82 percent.

The total trading turnover of the benchmark index was SR6.066 billion ($1.617 billion), as 189 of the listed stocks advanced, while 54 retreated.

The MSCI Tadawul Index also surged by 14.14 points, or 0.96 percent, to close at 1,488.74

The Kingdom’s parallel market Nomu reported an increase as well, gaining 181.35 points, or 0.64 percent, to close at 28,463.11 points. This comes as 48 of the listed stocks advanced while as many as 34 retreated.

The index’s top performer, Musharaka REIT Fund, saw a 10 percent increase in its share price, closing at SR4.84.  

Other top performers included Al-Baha Investment and Development Co., which saw a 9.97 percent increase to SR3.31, while Mulkia Gulf Real Estate REIT’s share price rose 9.96 percent to SR5.52. 

Alistithmar AREIC Diversified REIT Fund also recorded a positive trajectory, with share prices rising 9.92 percent to reach SR6.90.

Allied Cooperative Insurance Group was TASI’s worst performer, with the company’s share price falling by 3.35 percent to SR15. 

Etihad Etisalat Co. followed with a 3.17 percent drop to SR61. This decline comes after the firm’s consolidated interim financial results for the first quarter.

The company reported a 20.21 percent increase in its net profit, reaching SR 767 million, compared to the same period in 2024.

Saudi Printing and Packaging Co. also saw a notable decline of 3.03 percent to settle at SR 12.80. 

On the parallel market, National Building and Marketing Co. was the top gainer, with its share price surging by 9.88 percent to SR198.

Other top gainers in the parallel market were Arabian Plastic Industrial Co. and Ghida Alsultan for Fast Food Co., with their share prices surging by 8.51 percent and 5.65 percent, to reach SR51 and SR44.9, respectively.

Al Mohafaza Co. for Education was the major faller on Nomu, as the company’s share price slipped by 9.59 percent to SR23.10.

Yamama Cement Co. also announced its financial results for the first quarter of 2025, reporting a 23.51 percent increase to SR142 million compared to the same period of last year.

The company said in a statement on Tadawul that the increase in profit was mainly due to an annual rise in the average selling price and an increase in sales volume for the current quarter.

The firm’s share price closed on Wednesday’s session at SR36.7, increasing by 2.92 percent.


Saudia Group orders 20 Airbus A330neo jets to fuel fleet expansion

Updated 23 min 22 sec ago
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Saudia Group orders 20 Airbus A330neo jets to fuel fleet expansion

RIYADH: Saudia Group has signed a new agreement with Airbus to acquire 20 wide-body A330neo aircraft, including 10 confirmed orders for its low-cost carrier flyadeal, as part of its fleet expansion strategy. 

The deal, finalized at Airbus’s facility in Toulouse, France, reinforces the group’s ambitions to enhance operational efficiency and expand destination coverage, aligning with Saudi Arabia’s Vision 2030. 

With deliveries scheduled between 2027 and 2029, the acquisition marks a continuation of Saudia Group’s broader modernization plan, which includes a 2023 order for 105 Airbus aircraft. 

A330neo’s long-range capability and fuel efficiency are expected to play a central role in supporting the Kingdom’s goals of connecting to 250 destinations and transporting 330 million passengers annually.  

The agreement aligns with the Kingdom’s broader trend of making multiple Airbus aircraft purchases. 

In October, Riyadh Air signed a deal to purchase 60 Airbus A321neo aircraft. In July, the Royal Saudi Air Force signed a contract with Airbus for four additional A330 Multi Role Tanker Transport aircraft. 

The deal was signed by Saleh Eid, vice president Fleet Management and Agreements at Saudia Airlines, and Benoit de Saint-Exupery, executive vice president of Commercial Aircraft Sales at Airbus, in the presence of Ibrahim Al-Omar, director general of Saudia Group and Christian Scherer, CEO of the Commercial Aircraft business of Airbus. 

Al-Omar emphasized the significance of the deal as a continuation of the group’s ambitious strategy to expand and modernize its fleet. 

He noted that this agreement follows a previous order of 105 Airbus aircraft in 2023 and supports national strategies under Vision 2030 aimed at reaching 250 destinations, transporting 330 million passengers, and attracting 150 million tourists annually. 

Benoit de Saint-Exupery welcomed the order as a strategic advancement for both parties. 

“Saudia Group’s order for A330neo aircraft for flyadeal is a crucial step toward enabling the Kingdom’s long-haul expansion and attracting a broader range of passengers,” he said. 

“The aircraft’s proven efficiency, versatility, and passenger experience make it the right fit for Saudia Group’s strategic growth,” he added. 

Saudia Group currently operates a fleet of 194 aircraft across its commercial, low-cost, cargo, and logistics divisions. 

With an additional 191 aircraft expected to be delivered in the coming years, the group is advancing its position as a key enabler of Saudi Arabia’s aviation sector and broader national development initiatives.


Saudi Arabia, Ethiopia target key sectors in push to deepen economic ties

Updated 44 min 39 sec ago
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Saudi Arabia, Ethiopia target key sectors in push to deepen economic ties

JEDDAH: Saudi Arabia and Ethiopia plan to boost economic cooperation in key sectors — including agriculture, manufacturing, and tourism — as officials from both nations met at a forum in Riyadh. 

The event, organized by the Federation of Saudi Chambers, brought together more than 150 representatives from the public and private sectors of both countries, the Saudi Press Agency reported, and marked the first major gathering since the establishment of the Saudi-Ethiopian Business Council last year. 

The initiative aligns with Saudi Arabia’s strategy to strengthen economic ties with African nations and explore new investment opportunities and markets, recognizing Ethiopia’s potential as a favorable investment environment, a key trade gateway to the continent. 

Ethiopia’s State Minister for Trade and Regional Integration Abdulhakim Mulu invited Saudi investors to explore opportunities in key sectors including agriculture, food industries, and tourism, as well as hospitality and manufacturing.  

He emphasized Ethiopia’s rapid economic growth and the government’s commitment to improving infrastructure and fostering a favorable investment climate. 

Federation of Saudi Chambers Chairman Hassan Al-Huwaizi stated that Saudi Arabia is actively working to strengthen its relations with African countries, particularly Ethiopia, which serves as a strategic gateway for Saudi exports to the continent. 

“He noted Ethiopia’s natural resources and potential in agriculture, food industries, and mining, adding that the limited trade volume, which is merely SR1.3 billion ($347.1 million), indicates untapped investment opportunities,” SPA reported. 

The Saudi-Ethiopian Business Council was formally approved by the Saudi General Authority for Foreign Trade last year to enhance bilateral trade and investment. Its formation followed agreements reached during a prior forum held on June 5 in Addis Ababa. 

As both nations seek to deepen their economic engagement, the council is expected to play a pivotal role in unlocking new opportunities, boosting bilateral trade, and fostering a more integrated economic partnership between Saudi Arabia and Ethiopia. 

According to a 2024 World Bank report, Ethiopia — home to 126.5 million people as of 2023 — is the second most populous nation in Africa and one of the continent’s fastest-growing economies, recording a 7.2 percent growth rate in the 2022/2023 fiscal year. 

Despite this progress, Ethiopia remains one of the world’s poorest countries, with a gross national income per capita of $1,020. The country aims to achieve lower-middle-income status by 2025, building on years of infrastructure-driven growth that have helped reduce poverty and improve access to essential services. 


Saudi Arabia ranks 1st in region, 6th in G20 for geospatial infrastructure

Updated 23 April 2025
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Saudi Arabia ranks 1st in region, 6th in G20 for geospatial infrastructure

RIYADH: Saudi Arabia has climbed to ninth place in the 2025 Geospatial Knowledge Infrastructure Readiness Index, up from 32nd in 2022, reflecting steady progress in its spatial sciences sector.

Represented by the General Authority for Survey and Geospatial Information, the Kingdom ranked first in the Middle East and the Arab world, and sixth among G20 nations, in the index, according to a statement. 

Created by the Geospatial World and backed by the UN Statistics Division, the GKI Readiness Index serves as a strategic tool to assess how prepared countries are to adopt geospatial knowledge, highlighting its role in driving economic growth, sustainable development, and digital transformation. The index is based on several axes.

The newly released rankings align with Saudi Arabia’s ongoing progress in global indices, including a 17.5 percent score increase in the 2025 Global Intellectual Property Index. This places the Kingdom among the fastest-improving economies out of the 55 countries evaluated.

They also align well with Saudi Arabia’s strategic objectives for expanding its commercial space operations and advancing innovative satellite solutions locally and globally. 

In the newly released statement, GEOSA said: “The Kingdom ranked sixth globally in the Policy Axis, thanks to its pioneering experience in governing the national geospatial data system and developing its policies, standards, and specifications in accordance with international best practices.” 

“It ranked seventh globally in the Infrastructure Axis, due to its pivotal role in unifying national efforts related to geospatial information, including the development of the National Geospatial Platform, which represents a window into the national geospatial infrastructure available to the public and private sectors, as well as the academic and non-profit sectors and individuals. It ranked eighth globally in the Geospatial Industry Axis, demonstrating its constructive role in establishing strategic partnerships with various sectors,” it added. 

The statement further indicated that the Kingdom’s advancement in the index highlights the continuous support provided by its leadership and the minister of defense, who also chairs the GEOSA Board of Directors for the survey and geospatial information sector. 

This support has propelled Saudi Arabia to a prominent position both regionally and internationally, placing it at the forefront of developed nations in the geospatial sector, the statement explained. 

This advancement also resulted in Riyadh being selected as the home of the UN Global Geospatial Ecosystem Center of Excellence, thereby reinforcing the Kingdom’s status as a global frontrunner in cutting-edge geospatial information management. 

In March, Neo Space Group, a satellite and space firm under Saudi Arabia’s sovereign wealth fund, partnered with Beijing-based SuperMap Software to enhance technological capabilities and support the Kingdom’s Vision 2030 goals.


Saudi Arabia ranks 15th globally in AI research output

Updated 23 April 2025
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Saudi Arabia ranks 15th globally in AI research output

RIYADH: Saudi Arabia has ranked 15th globally in artificial intelligence research output for 2025, driven by the volume of academic publications, according to a new report.    

The Kingdom produced 29,639 AI-related publications, placing it among the top contributors to global AI research and highlighting its emerging role as a regional technology leader.  

This performance places Saudi Arabia ahead of several long-established research hubs, including the Netherlands, Singapore, and Russia, as well as Switzerland and Sweden, according to the newly released Global AI Competitiveness Index.      

Dmitry Kaminskiy, general partner at Deep Knowledge Group, said: “Saudi Arabia’s ranking aligns with the Kingdom’s Vision 2030 objectives, reinforcing the country’s commitment to developing a sustainable, diversified knowledge-based economy.”   

He added: “With AI being a central pillar in the nation’s development plans, the findings of our report pave the way for continued excellence and leadership in the field.”  

The Global AI Competitiveness Index, jointly developed by the International Finance Forum and Deep Knowledge Group, evaluated more than 2 million AI-related scientific papers and invention patents worldwide.    

The report measures countries based on both the quantity and impact of their AI research contributions.  

The Kingdom’s output translates to over 823 AI publications per million people, which reflects its ongoing efforts to strengthen its scientific and technological landscape.  

“Saudi Arabia’s AI research output is a testament to the country’s commitment to becoming a leader in technology and innovation. The Kingdom’s strategic investments in AI infrastructure and talent development are already yielding impressive results, setting the stage for further advancements,” Kaminskiy added.  

The research milestone comes amid broader gains in global AI competitiveness. In the 2024 Global AI Index by Tortoise Media released in September, Saudi Arabia climbed 17 positions to rank 14th overall, overtaking the UAE as the leading Arab nation in AI.    

The index, which evaluates countries on factors such as research, talent, infrastructure, and government policy, also reaffirmed the Kingdom’s top global ranking in the government strategy category.  

Global trends  

The Global AI Competitiveness Index report also underscores broader international trends, with Mainland China leading in total volume of AI papers — reporting a 696 percent increase over the past decade to reach 769,000 publications.    

Japan and South Korea’s entry into the global top 10 further reflects the growing dominance of East Asia in the international AI research landscape, the report noted.   

Saudi Arabia has also been ranked 24th globally in AI patent output. With a total of 1,189 AI-related patents filed, the Kingdom is continuing to build its innovation capacity in parallel with its growing research footprint.    

While its absolute patent count remains modest compared to leading nations, the ranking reflects the country’s early but expanding efforts in technological commercialization and intellectual property development within AI.   

In terms of AI patents per million people, Saudi Arabia reported a rate of 35, placing it ahead of larger economies such as Russia with 6.4, and India with 3.1, but still trailing far behind global leaders like South Korea, 2,317.9, Japan, 1,751.2, and the US, 1,365.2.