Lucid to receive $1bn from PIF affiliate via new stock
Updated 25 March 2024
Arab News
RIYADH: Electric carmaker Lucid announced an additional $1 billion investment from Saudi Arabia’s Public Investment Fund in a move which saw its shares rise 18 percent.
The money is coming via the company’s majority stockholder, Ayar Third Investment Co., an affiliate of the Kingdom’s sovereign wealth body.
It will reach California-based Lucid through a newly created series of convertible preferred stock, which can be converted into about 280 million shares, according to a filing with the US securities regulator.
The Saudi government has a 60 percent stake in the company, and has invested billions as part of a strategy to diversify the Kingdom’s economy beyond oil.
“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world's leading EV technology company,” said Peter Rawlinson, CEO and chief technology officer of Lucid Group.
He added: “We continue to invest for the long term in both our technology and our vertically integrated manufacturing capabilities, with PIF’s support a key differentiator. With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”
The investment announcement comes as the global electric vehicle market grapples with a slowdown in demand growth and a price war sparked by Tesla.
Lucid expects to make 9,000 units in 2024, compared with the 8,428 vehicles it made last year.
Lucid’s Air luxury sedans compete with Tesla’s Model S and EVs from Mercedes-Benz, BMW, Audi and Porsche, among other brands.
Lucid used its fourth-quarter 2023 financial presentation in February to reassure investors it had sufficient liquidity “at least until 2025” and forecast $1.5 billion in capital spending in 2024 as it pushes to launch its Gravity SUV line later this year.
The company had $4.8 billion in available funds at the end of 2023, including $4.3 billion in cash.
In September, Lucid opened its first plant outside the US in Saudi Arabia with an initial capacity to produce 5,000 EVs a year.
This came as Kingdom’s government pledged to buy up to 100,000 vehicles from it over 10 years.
“The car is fully built in Arizona ... then it gets de-assembled ... then the car gets shipped here as a kit, and that kit is then put back together,” Faisal Sultan, who is also Lucid’s global vice-president, told Reuters in December.
Workers in the factory in Jeddah re-attach the battery, put the trim and tires back on and re-test the vehicle, he added.
Lucid is not the only EV player in the Saudi market, as in November 2022 Crown Prince Mohammed bin Salman announced the launch of CEER, a government-owned enterprise that will design, manufacture and sell battery-powered vehicles in Saudi Arabia.
Saudi Arabia and Syria explore investment cooperation in bid to boost economic integration
Updated 6 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia and Syria are set to advance economic cooperation following a virtual meeting between the Kingdom’s Minister of Investment Khalid Al-Falih and the Middle Eastern country’s Minister of Economy and Industry Mohammad Al-Shaar.
The two sides reviewed prospects for investment partnerships and discussed opportunities to expand collaboration in both public and private sectors, according to a report by the Saudi Press Agency.
The discussions focused on promoting high-quality investments across productive and service industries, with the goal of supporting Syria’s economic development and enhancing regional financial integration.
The meeting also examined ways to build a favorable environment for cross-border investments that can contribute to long-term stability.
Syria is undertaking significant efforts to revive its economy following years of conflict. The transitional government, led by President Ahmed Al-Sharaa, has initiated reforms, including the privatization of state enterprises, the lifting of import restrictions, and the encouragement of foreign investment.
Notable developments encompass a $7 billion energy infrastructure agreement with a Qatari-led consortium, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project involving Gulf telecom firms.
“Al-Falih emphasized the importance of creating an enabling environment for expanding regional investment partnerships,” SPA said.
He added that Saudi Arabia is keen to assist in stabilizing and developing the Syrian economy, which he described as essential for serving mutual interests and promoting regional economic prosperity.
Additionally, the Kingdom and Qatar have pledged financial support for Syrian public sector salaries in May.
These initiatives, alongside the easing of Western sanctions, aim to stabilize the economy and attract international investment.
The talks are part of broader Saudi efforts to expand its global investment footprint and strengthen economic ties across regions.
In May, Saudi Foreign Minister Prince Faisal bin Farhan visited Damascus, where he met Al-Sharaa and pledged Saudi-Qatari support for Syria’s public sector, with a particular focus on energy and infrastructure investments.
The Kingdom has also ramped up high-level international engagements this year. Minister of Finance Mohammed Al-Jadaan participated in the Saudi-US Investment Forum in Riyadh in May to discuss cross-border investment opportunities.
In April, Al-Jadaan met with Pakistan’s Finance Minister Muhammad Aurangzeb in Washington to deepen financial and economic cooperation.
Additionally, Minister of Economy and Planning Faisal Alibrahim signed a memorandum of understanding with Spain on May 22 to promote trade diversification and new investment opportunities.
Alibrahim also represented Saudi Arabia at the World Government Summit in Dubai in February to advance Vision 2030 partnerships.
Saudi Arabia’s Port of NEOM installs 1st automated cranes, targets 2026 launch
Updated 36 min 3 sec ago
MIGUEL HADCHITY
RIYADH: Saudi Arabia’s $500-billion giga-project NEOM has installed the Kingdom’s first fully automated, remote-controlled cranes at its Red Sea port as it moves ahead with plans to begin operations in 2026.
The delivery of next-generation ship-to-shore and electric rubber-tyred gantry cranes marks a key milestone in the development of Terminal 1, which will accommodate the world’s largest container ships. NEOM is aiming to position the facility as a global logistics hub connecting Asia, Europe, and Africa.
The facility supports Saudi Arabia’s Vision 2030 by contributing to economic diversification through enhanced trade, logistics, and industrial capabilities. As global supply chains shift toward resilience and efficiency, NEOM’s strategic Red Sea location positions it as a vital link between Asia, Europe, and Africa.
Sean Kelly, managing director of Port of NEOM, said: “The arrival of our first automated cranes marks a tangible milestone as we lay the foundations for an advanced, future-ready port.”
He added: “We’re not only accelerating industrial growth in northwest Saudi Arabia, but we’re also setting a new benchmark for performance, efficiency, innovation and establishing a vital trade gateway for the Kingdom and the region beyond.”
The new cranes will enable high-efficiency operations while allowing remote control from ergonomic workstations.
Infrastructure developments, including a 900-meter quay wall and an 18.5-meter-deep channel, ensure the port can handle the largest vessels transiting the Suez Canal. Terminal 1 will also feature horizontal transport automation, boosting logistics capacity and regional industrial growth.
Alongside infrastructure upgrades, the port is investing in local talent development. A specialized program is training Saudi workers, including women, for high-tech roles such as remote crane operations. Ten participants from Saudi Arabia’s Tabuk region are currently in a two-year program combining technical training and mentorship.
Trainee Hajjer Alatawi said: “This experience has shown me that port logistics is far more complex than just moving cargo; it’s about teamwork, precision and responsibility. Seeing more Saudi women entering this space gives me hope for a future where industries are defined by skills, not gender.”
The press release added that by empowering Saudi workers with high-tech skills, “Port of NEOM is supporting NEOM’s vision of being a catalyst for a sustainable, diverse and innovative ecosystem that enables regional economic resilience and advances the goals of Saudi Vision 2030.”
UAE’s power capacity set to reach 79.1GW by 2035: GlobalData
Updated 05 June 2025
Nirmal Narayanan
RIYADH: The power capacity of the UAE is expected to reach 79.1 gigawatts by 2035, registering a compound annual growth rate of 3.4 percent from 2024, according to a report.
Findings from data analytics and consulting company GlobalData stated that annual power generation in the Emirates is expected to increase at a CAGR of 3.8 percent from 2024 to 2035, reaching 281.3 terawatt-hours.
Boosting power capacity is essential for the UAE as energy demand rises alongside a rapidly growing population, which is expected to reach 11.9 million by the end of the decade, up from 11 million today.
A significant factor contributing to this increased energy consumption is the high expatriate population, which accounts for around 88 percent of the total and drives the growth in residential and commercial energy needs.
“The power sector in the UAE offers abundant opportunities for investors, with the government poised to make significant investments in the expansion and modernization of its generation and supply infrastructure,” said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData.
He added: “The anticipated increase in capacity is projected to occur predominantly in gas-based thermal power, as opposed to oil, where capacity is expected to remain stable. Manufacturers of gas turbines stand to benefit from this surge in gas-fired power capacity.”
GlobalData further said that the climate conditions in the UAE are exceptionally conducive to solar power generation, prompting the government to allocate extensive tracts of undeveloped land for solar parks, including both photovoltaic and concentrated solar power installations.
The report added that the UAE has the capability to not only meet local demand using solar energy but also cater to export needs.
The country is taking significant steps to bolster its renewable energy capacity, especially solar power, as a core strategy to address climate change.
It is targeting a clean energy capacity of 14.2GW by the end of this decade and is planning to invest between $40.84 billion and $54.45 billion to triple renewable energy contribution by 2030.
“Over the past decade, the UAE has experienced a marked increase in electricity demand, necessitating the importation of natural gas from Qatar,” said Saibasan.
He added: “In response to this growing demand and to diversify its energy portfolio, the UAE has strategically shifted away from exclusive dependence on natural gas, expanding into renewable and nuclear energy sectors.”
GlobalData further stated that the development of mega urban projects, such as Masdar City and Expo City Dubai, also highlights the need for sustainable energy solutions.
“These smart cities are at the forefront of innovation, yet they also contribute to higher electricity consumption. Consequently, this trend necessitates the expansion of the electrical grid and investment in smart infrastructure to meet the evolving demands,” Saibasan concluded.
Global energy investment to hit record $3.3tn in 2025: IEA
Updated 05 June 2025
Nirmal Narayanan
RIYADH: Energy investment globally is projected to hit a record $3.3 trillion in 2025, driven by a surge in clean power spending amid economic uncertainty and geopolitical tensions, according to an analysis.
In its latest report, the International Energy Agency said that technologies in the sector, including renewables, nuclear, and storage, are set to attract $2.2 trillion in investment.
Investments in oil, natural gas and coal are set to reach $1.1 trillion this year.
The uptick in clean energy spending aligns with the wider trend observed globally as most nations, including oil-rich countries in the Middle East, have set net-zero targets to reduce emissions and combat climate change.
Saudi Arabia plans to achieve net-zero emissions by 2060, while the UAE aims to reach the goal in 2050.
Fatih Birol, executive director of the IEA, said: “Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks.”
He added: “The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects.”
Electricity takes the lead
IEA said that investment trends in the sector are being shaped by the onset of the “Age of Electricity” and the rapid rise in demand for industry, cooling, electric mobility, data centers and artificial intelligence.
A decade ago, investments in fossil fuels were 30 percent higher than those in electricity generation, grids and storage.
In 2025, electricity investments are set to be some 50 percent higher than the total amount being spent bringing oil, natural gas and coal to market, reaching $1.5 trillion.
In April, another report by the IEA also highlighted the growing demand for electricity globally driven by the rapid rollout of AI and data centers.
At that time, the think tank said electricity consumption by data centers powered by AI is expected to double by 2030 to reach 945 terawatt-hours, creating new challenges for energy security and carbon dioxide emission goals.
IEA added that electricity consumption by data centers has increased by 12 percent annually since 2019 to reach 1.5 percent of the global amount in 2024.
Data centers are a growing user of electricity. Shutterstock
Clean energy surge
According to the report, spending on low-emission power generation has almost doubled over the past five years, led by solar PV.
The energy agency projected that investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the largest single item in the world’s energy investment inventory.
“Fierce competition among suppliers and ultra-low costs are seeing imported solar panels, often paired with batteries, become an important driver of energy investment in many emerging and developing economies,” said the IEA.
Battery storage investments are also climbing rapidly, surging above $65 billion this year.
Saudi Arabia has also set ambitious goals to generate clean energy, primarily using solar power.
The Kingdom plans to generate 58.7 gigawatts of renewable energy by 2030, with 40 GW from solar PV. It also plans to generate 16 GW from wind energy and 2.7 GW from concentrated solar power.
This commitment is part of the broader National Renewable Energy Program strategy, aimed at diversifying its energy portfolio and reducing reliance on fossil fuels.
IEA added that capital flows to nuclear power have grown by 50 percent over the past five years and are on course to reach around $75 billion in 2025.
The US and the Middle East accounted for nearly half of a resurgent level of final investment decisions for natural gas power.
Saudi Arabia is also planning to include nuclear energy as a key part of the Kingdom’s energy mix.
In January, the Kingdom’s Energy Minister Prince Abdulaziz bin Salman said the nation is planning to begin enriching and selling uranium.
Launched in 2017, Saudi Arabia’s National Atomic Energy Project is a cornerstone of the Kingdom’s strategy to diversify its energy sources.
If investments in carbon capture, utilization and storage move ahead as planned, spending in this sector will rise more than tenfold by 2027 from current levels, the IEA added.
“Low-emissions fuel projects are particularly prone to policy uncertainty. Some hydrogen projects have been canceled or delayed in the past 12 months, but there remains a pipeline of approved projects that require around $8 billion of investment in 2025, almost double the level seen in 2024,” said the report.
In November, NEOM Green Hydrogen Co.’s CEO Wesam Al-Ghamdi told Arab News that Saudi Arabia is on track to begin production in the world’s largest green hydrogen project by 2026.
The plant, located in the Kingdom’s $500-billion giga-project, will rely entirely on solar and wind energy to power a 2.2-GW electrolyzer designed to produce hydrogen continuously.
Grid investment gap
Spending patterns in the energy sector remain very uneven globally, according to the IEA. Shutterstock
According to the IEA, investment in grids — now at $400 billion per year — is failing to keep pace with spending on generation and electrification.
“Maintaining electricity security would require investment in grids to rise toward parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables,” said the energy agency.
The report further said that lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the COVID-19 slump in 2020.
The expected 6 percent drop is driven mainly by a sharp decline in spending on US tight oil.
However, investment in new liquefied natural gas facilities is on a strong upward trajectory as new projects in the US, Qatar, Canada and elsewhere prepare to come online.
The report added that the global LNG market is set to experience its largest-ever capacity growth between 2026 and 2028.
Geographical shifts
According to the IEA, spending patterns in the energy sector remain very uneven globally — with many developing economies, especially in Africa, struggling to mobilize capital for energy infrastructure.
The report added that Africa accounts for just 2 percent of global clean energy investment, despite being home to 20 percent of the world’s population.
“To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital,” said the IEA.
China is the largest global energy investor by a wide margin, and its share of global clean energy investment has risen from a quarter 10 years ago to almost one-third now.
Even though well behind China, the IEA added that energy investment trends in India and Brazil stand out among emerging and developing economies.
“Mobilising international finance for clean energy investment in emerging and developing economies will need to be combined with the development of domestic capital markets,” added the energy agency.
Remittances from Egyptians abroad surge over 80%, reaching $26.4bn
Updated 05 June 2025
Nour El-Shaeri
RIYADH: Remittances from Egyptians working overseas recorded a significant jump during the first nine months of the 2024/2025 fiscal year, reaching an unprecedented $26.4 billion.
This marks an 82.7 percent annual increase compared to the $14.4 billion recorded in the same period of the previous financial year, according to data from the country’s central bank.
The surge was especially pronounced in the third quarter, from January to March, when remittances saw an annual climb of 86.6 percent to about $9.4 billion, up from $5 billion in the previous year.
On a monthly basis, March saw inflows of approximately $3.4 billion, reflecting a 63.7 percent increase compared to the $2.1 billion registered in the same month of 2024.
The rise in remittances reflects broader improvements in the country’s external financial position, indicating growing trust from Egyptians abroad and helping to ease pressure on foreign currency reserves.
It also highlights the impact of recent government and central bank measures aimed at stabilizing the exchange rate and encouraging the flow of foreign currency through formal channels.
Net international reserves rose to $48.5 billion at the end of May, up from $47.8 billion in March, indicating stronger foreign currency inflows and improved liquidity.
Egypt’s foreign currency position has been further supported by ongoing economic reforms implemented under an International Monetary Fund-backed stabilization program.
Prime Minister Mostafa Madbouly reported in May that Egypt achieved real gross domestic product growth of 3.9 percent during the first half of the fiscal year, while private sector investment rose by 80 percent and foreign direct investment increased by approximately 17 percent.
Non-oil exports also grew by around 33 percent in the first nine months of the fiscal year, reflecting stronger activity in the industrial, tourism, and technology sectors.
Moody’s affirmed Egypt’s Caa1 long-term foreign and local currency ratings with a positive outlook in February, citing improved debt service prospects, higher foreign reserves, and falling borrowing costs.
The government reported a drop in the general budget deficit to 6.5 percent over the past 10 months and aims to reduce debt to 85 percent of GDP by the end of June, down from 96 percent the previous year.
However, inflationary pressures have re-emerged. Monthly urban headline consumer price index inflation rose to 1.9 percent in May, up from 1.3 percent in April and compared to a contraction of 0.7 percent in May 2024.
On an annual basis, urban inflation reached 16.8 percent in May, up from 13.9 percent in April. Core inflation followed a similar trajectory, rising to 13.1 percent year-on-year in May from 10.4 percent the previous month.
