Saudi Arabia is shifting gears and racing into the EV future

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

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.”


Global Markets — stocks rise, yields fall as Powell opens door to September rate cut

Global Markets — stocks rise, yields fall as Powell opens door to September rate cut
Updated 22 August 2025
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Global Markets — stocks rise, yields fall as Powell opens door to September rate cut

Global Markets — stocks rise, yields fall as Powell opens door to September rate cut

LONDON: Stocks rose and US Treasury yields and the dollar fell on Friday after Federal Reserve chair Jerome Powell pointed to a possible rate cut at the central bank’s September meeting.

Powell stopped short of committing to cutting interest rates as he tried to walk a narrow line acknowledging growing risks to the job market while also saying risks of higher inflation remain.

His remarks, to the annual central banking symposium at Jackson Hole, are his final address as chair of the Fed.

Share markets rallied in response to Powell’s speech, and the S&P 500 and Nasdaq Composite rose 1.4 percent and 1.6 percent respectively. The Dow Jones Industrial Average rose 1.6 percent to a record intraday high.

Government bonds also welcomed the news with the rate-sensitive two-year Treasury yield down nearly 10 basis points at 3.69 percent. Benchmark 10-year yields fell 6 bps to 4.27 percent.

Powell’s past speeches at the event have often moved markets, and this year’s remarks are under particularly close scrutiny as his position has come under heavy criticism from US President Donald Trump, sparking concerns about potential threats to the Fed’s independence.

His comments open the door to a rate cut at the Fed’s Sept. 16-17 meeting, and while he put heavy weight on jobs and inflation reports that will be received before then, analysts said Powell appeared to be putting greater weight on the former.

“Chair Powell was able to talk about the balance of risk shifting and therefore the potential of shifting of policy would be appropriate,” said Art Hogan, chief market strategist, B. Riley Wealth.

“That’s a clear hint that Chair Powell is open to supporting rate cuts in the future.”

But he offered little guidance about how soon or how quickly rates might continue to move lower, likely stoking further pressure from Trump, who contends there is no risk of inflation and that the Fed should slash rates immediately.

European markets echoed the moves by their US peers, but in a more muted manner.

Europe’s broad STOXX 600 index was last up 0.6 percent, while Germany’s 10-year yield, the euro zone benchmark, was down 3 bps at 2.72 percent.

The comparatively larger fall in US yields weighed on the dollar, which was down 0.7 percent on the Japanese yen at 147.3 yen.

The euro rose 0.64 percent to $1.1683.

China tech

Earlier in the day, the focus was on Chinese shares and the CSI 300 Index gained 2.1 percent, after DeepSeek released an upgrade to its flagship V3 AI model and Reuters reported that Nvidia had asked Foxconn to suspend work on the H20 AI chip, lending support to Chinese rivals.

Tech stocks listed in Hong Kong rose 2.7 percent.

Also in Asia, Japanese data showed core consumer prices slowed for a second straight month in July but stayed above the central bank’s 2 percent target, keeping alive expectations for a rate hike in the coming months.


Gold edges down on stronger dollar, Powell’s remarks in focus

Gold edges down on stronger dollar, Powell’s remarks in focus
Updated 22 August 2025
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Gold edges down on stronger dollar, Powell’s remarks in focus

Gold edges down on stronger dollar, Powell’s remarks in focus

BENGALURU: Gold prices edged lower on Friday on a stronger dollar while investors awaited US Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole symposium that could offer fresh clues on the monetary policy path.

Spot gold fell 0.3 percent to $3,329.19 per ounce by 9:07 a.m. Saudi time. US gold futures for December delivery lost 0.3 percent to $3,372.10.

The US dollar index hovered near a two-week high, making gold less attractive to overseas buyers.

Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month as investors geared up for Powell’s speech, due at 5:00 p.m. Saudi time on Friday.

“With a Russia-Ukraine peace deal still a possibility, and the USD attracting some buyers, gold is facing headwinds,” KCM Trade chief market analyst Tim Waterer said.

“But if Powell’s message is interpreted as being a dovish shift, the USD could be undone, and gold may be on the move higher again.”

Futures markets indicate a 75 percent chance of a quarter-point rate reduction next month, according to CME’s FedWatch tool.

Recent labor data showed US jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.

The challenge for Fed policymakers is that even though there are signs of labor market weakening, inflation remains above the central bank’s 2 percent target and could go higher due to the Trump administration’s aggressive tariff hikes.

Russian President Vladimir Putin is demanding that Ukraine give up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, three sources familiar with top-level Kremlin thinking told Reuters.

Elsewhere, spot silver was down 0.4 percent to $38.01 per ounce, platinum fell 0.6 percent to $1,345.06, and palladium rose 0.2 percent to $1,113.19. 


Saudi Fund for Development continues lending helping hand to emerging economies

Saudi Fund for Development continues lending helping hand to emerging economies
Updated 22 August 2025
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Saudi Fund for Development continues lending helping hand to emerging economies

Saudi Fund for Development continues lending helping hand to emerging economies

RIYADH: At a time when the world is getting fragmented due to geopolitical tensions and ongoing wars, Saudi Arabia’s development fund is becoming a beacon of hope, as it continues to provide soft loans and grants for emerging economies.

Established in 1974 and commenced operations in 1975, the Saudi Fund for Development has financed more than 800 development projects in over 100 countries, with a cumulative value exceeding $21 billion.

SFD’s financing spans across multiple sectors, including health, education, and transport, as well as water and energy, with the aim of improving living conditions, enhancing capacity building, and creating job opportunities for millions of people in emerging nations.

As the fund now celebrates its 50th year of operations, SFD’s offerings for developing nations show no signs of slowing down.

Here are the highlights of its activities so far this year:

Water security project in Somalia

The signing of the MoU between SFD and Somalia. SFD

In January, Sultan Abdulrahman Al-Marshad, CEO of SFD, signed a memorandum of understanding with Bihi Egeh, Somalia’s minister of finance, to provide a $2 million grant from the Kingdom through the fund.

The grant was part of the fifth phase of the Saudi Well Drilling and Rural Development Program in Africa.

The deal aims to enhance access to clean water in Somalia’s rural areas by drilling wells and establishing solar-powered water supply networks.

“This initiative seeks to enhance water and food security, provide safe drinking water, combat water scarcity, and reduce reliance on contaminated water sources in Somalia,” said SFD in a statement at the time.

The program, valued at $330 million, has provided clean drinking water to over 5 million people since its initiation.

Launched in 1982, the Saudi Well Drilling and Rural Development Program has addressed the needs of African nations by funding the construction of more than 10,000 potable water facilities in 20 countries across the continent.

Power expansion project in Suriname

SFD CEO Sultan Abdulrahman Al-Marshad signed an agreement with Kermechend Raghoebarsing, minister of finance and planning of Suriname. SFD

In February, SFD signed an agreement to provide its first concessional development loan, worth $20 million, to Suriname to expand the country’s power generation, transmission, and distribution systems.

SFD said the project aims to expand the electricity transmission and distribution network in Paramaribo, the capital, and the city of Nickerie, boosting power supply for beneficiaries and improving the efficiency of the South American nation’s electrical grid.

“This agreement represents the beginning of development cooperation between SFD and the Republic of Suriname, underscoring SFD’s 50-year commitment to supporting developing nations in overcoming economic, social, and developmental challenges,” said SFD.

Transport and housing solutions in Maldives

In April, the fund signed a second development loan agreement valued at $17 million to support the expansion and development of the Velana International Airport Project in the Maldives, bringing SFD’s total financing for the facility to $217 million.

The fund said that the financing will be used to construct terminal buildings for international and domestic flights, as well as a seaplane terminal.

“The project is designed to increase the airport’s capacity to accommodate up to 7 million passengers annually, enhance operational efficiency, and meet the growing demand for travel and tourism,” said SFD.

The project is also expected to prepare the facility for future expansion to handle up to 15 million passengers per year, contributing to the economic growth and global connectivity of the South Asian nation.

Al-Marshad participated in the groundbreaking ceremony for the Affordable Housing Project in the Maldives.

The project is being financed through a $25 million concessional development loan from SFD.

It aims to provide more than 400 fully integrated housing units, benefitting over 2,700 individuals, and includes the development of essential infrastructure and services to ensure suitable and sustainable living conditions.

It also seeks to enhance resilience against natural disasters such as cyclones and flooding, while promoting economic and social development within local communities.

Since 1978, SFD has provided 17 development loans to the Maldives, financing 14 key projects and programs with a total value exceeding $488 million.

These projects span critical sectors such as transportation, water and sanitation, health, and infrastructure.

Renewable energy loan to Solomon Islands

SFD CEO Sultan Abdulrahman Al-Marshad signed a development loan agreement with the Solomon Islands’ Minister of Finance and Treasury Manasseh Sogavare. SFD

In April, SFD signed its first-ever development loan agreement with the Solomon Islands, valued at $10 million, to finance a renewable energy project.

The fund will help the construction of solar power plants with a total capacity of 35.5 megawatts, integrated with hourly energy storage systems to bolster the Pacific nation’s energy infrastructure.

“This initiative is designed to reduce reliance on conventional energy sources, support environmental sustainability, and advance the UN Sustainable Development Goals, while contributing to economic and social progress across the region,” said SFD.

This first-ever loan agreement also marked the beginning of development cooperation between SFD and the Solomon Islands, underscoring the fund’s growing role in supporting small island developing states to combat developmental, economic, and environmental challenges.

Multiple development projects in Tunisia

In March, SFD successfully handed over 330 residential units under its social housing development project in the Ben Arous governorate in Tunisia.

The initial phase of the project, supported by concessional financing from the SFD, valued at $150 million, aims to deliver 4,715 social housing units, spanning several governorates in the North African country.

In June, SFD also signed a new development loan agreement worth $38 million to finance the establishment of an Oasis Hub Project in southern Tunisia.

The project aims to support sustainable rural development through the reclamation of more than 1,000 hectares of agricultural land across various regions of the country.

It also includes the drilling and equipping of 22 wells, the expansion of rural villages and their infrastructure, and the construction of over 285 housing units for local beneficiaries.

“The project will enhance the region’s infrastructure by building roads, pipelines, and networks for potable and irrigation water, while also supporting the development of educational institutions, agricultural facilities, and cultural, social, and commercial centers,” said SFD.

“These efforts collectively aim to improve the quality of life and stimulate economic and social growth in Tunisia’s southern governorates,” it added.

Since the inception of its operations in Tunisia in 1975, SFD has financed 32 development projects and programs, through concessional loans totaling more than $1.2 billion.

Tunisia has also received grants from Saudi Arabia through SFD, amounting to over $102 million.


Oil Updates — crude prices set to end losing streak as Ukraine peace process stalls

Oil Updates —  crude prices set to end losing streak as Ukraine peace process stalls
Updated 22 August 2025
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Oil Updates — crude prices set to end losing streak as Ukraine peace process stalls

Oil Updates —  crude prices set to end losing streak as Ukraine peace process stalls

LONDON: Oil prices were stable on Friday as hopes for an imminent peace deal between Russia and Ukraine dimmed, putting prices on track for their first weekly gain in three weeks.

Brent crude futures were up 8 cents, or 0.1 percent, at $67.75 a barrel by 11:15 a.m. Saudi time. West Texas Intermediate crude futures rose 12 cents, or 0.2 percent, to $63.64.

Both contracts gained more than 1 percent in the previous session. Brent has risen 2.8 percent so far this week while WTI is up 1.4 percent.

“Everyone is waiting for President Trump’s next step,” said UBS commodity analyst Giovanni Staunovo. “Over the coming days, it seems nothing will happen.”

The three-and-a-half-year war continued unabated this week as Russia launched an air attack near Ukraine’s border with the EU on Thursday and Ukraine said it hit a Russian oil refinery and the Unecha oil pumping station, a critical part of Russia’s Europe-bound Druzhba oil pipeline.

Hungary said deliveries through the pipeline had been halted.

Trump is seeking to arrange a summit between Russian President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelensky as part of efforts to broker a peace deal for Ukraine.

But arranging such a meeting appears challenging and discussions around potential security guarantees face obstacles, ING analysts said in a client note on Friday. The less likely a ceasefire looks, the more likely the risk of tougher US sanctions on Russia, they said.

Meanwhile, US and European planners have presented military options to their national security advisers after the first in-person meeting between the US and Russian leaders since Russia invaded Ukraine.

Putin demanded that Ukraine give up all of the eastern Donbas region, renounce NATO ambitions and keep Western troops out of the country, sources told Reuters.

Trump pledged to protect Ukraine under any war-ending deal and Zelensky dismissed the idea of withdrawing from internationally recognized Ukrainian land.

Larger than expected fall in US oil stocks

Oil prices were also supported by a larger than expected drawdown from US crude stockpiles in the past week, indicating strong demand.

Stocks fell by 6 million barrels in the week ended August 15, the US Energy Information Administration said on Wednesday. Analysts had expected a draw of 1.8 million barrels.

Weak economic data from Germany on Friday partially offset the stocks draw, showing that Europe’s largest economy shrank by 0.3 percent in the second quarter, raising concerns over oil demand.

Investors were also looking to the Jackson Hole economic conference in Wyoming for signals of a Federal Reserve interest rate cut next month. The annual gathering of central bankers began on Thursday and Fed Chair Jerome Powell speaks on Friday.

Lower interest rates can stimulate economic growth and increase oil demand, potentially boosting prices. 


Closing Bell: Saudi main index slips to close at 10,866 

Closing Bell: Saudi main index slips to close at 10,866 
Updated 21 August 2025
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Closing Bell: Saudi main index slips to close at 10,866 

Closing Bell: Saudi main index slips to close at 10,866 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Thursday, slipping 11.24 points, or 0.10 percent, to end at 10,866.83. 

The benchmark’s total trading turnover stood at SR5.21 billion ($1.38 billion), with 87 stocks advancing and 159 declining. 

Similarly, the Kingdom’s parallel market Nomu fell 94.16 points, or 0.35 percent, to settle at 26,535.79, as 42 stocks gained while 51 retreated. 

Meanwhile, the MSCI Tadawul Index inched up 2.43 points, or 0.17 percent, to close at 1,409.05. 

The best-performing stock of the day was Saudi Basic Industries Corp., which jumped 7.65 percent to SR61.90. 

Other notable gainers included Sahara International Petrochemical Co., up 5.32 percent to SR20.01, and Fawaz Abdulaziz Alhokair Co., which climbed 5.17 percent to SR23.99. 

On the other hand, Halwani Bros. Co. posted the sharpest loss, falling 4.92 percent to SR43.26. 

Jahez International Co. for Information System Technology fell 3.84 percent to SR22.31, while Saudi Awwal Bank declined 3.73 percent to SR30.96.   

On the corporate announcements front, Axelerated Solutions for Information and Communication Technology Co. released its interim financial results for the period ending June 30.

According to a Tadawul statement, the company posted a net profit of SR33.8 million during the first half of the year, up 94 percent from the same period last year.  

The profit growth was mainly attributed to a 91 percent surge in gross profit to SR45.4 million, compared to SR23.8 million a year earlier, alongside an SR86.8 million increase in revenue and an SR1.8 million boost in other income.   

The company’s board also recommended distributing SR8.4 million in cash dividends to shareholders for the first half of 2025.

A Tadawul filing showed that 28 million shares are eligible, with a dividend of SR0.30 per share, equivalent to 30 percent of the share’s par value. 

Axelerated Solutions closed the session at SR28, marking a 3.70 percent gain. 

Arriyadh Development Co. announced an update on its partnership agreement with Saudi Real Estate Co. and Riyadh Holding Co. to establish a special-purpose vehicle to develop educational complexes.  

Arriyadh Development Co. ended the day at SR32.70, up 0.86 percent.