Saudi Arabia eyes 500,000 electric cars per year
New auto partnership in first half of the year, says investment minister
Cairo: Saudi Arabia plans to produce 500,000 electric cars annually by 2030, the kingdom’s Investment Minister Khaled Al Faleh has said.
He told Asharq Al Awsat newspaper that a new partnership between the kingdom and an international manufacturer of electric cars would be announced during the first half of this year.
Last November, Saudi Arabia’s Crown Prince Mohammad bin Salman announced the launch of Ceer, the first Saudi electric vehicle brand.
The launch came in line with the strategy of the Saudi Public Investment Fund ( PIF), headed by the crown prince, to focus on locally unlocking potential of promising sectors that can help drive diversification of the kingdom’s economy.
The company is also envisaged to contribute to Saudi Arabia’s efforts towards carbon emissions reduction and driving sustainability to tackle climate change.
Ceer is the first Saudi car brand to produce electric vehicles in the kingdom, planning to design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA region, including sedans and sports utility vehicles.
“There will be a big hub for electrical industries in Saudi Arabia,” Al Faleh said, expecting around 500,000 electric cars to be manufactured annually in the kingdom by 2030.
“This is a big figure,” he said. “Part of this output will be exported. This means this industry should be based on competitiveness and cost-effective.”
The official said the Saudi government is working with these companies to ensure competitiveness through supply chains. “An economic zone is being established and is in an advanced stage, to emerge as the main centre for major car manufacturers and their supportive supply chains.”
On launching Ceer, Crown Prince Mohammed said: “Saudi Arabia is not just building a new automotive brand. We are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talents, enables the private sector, and contributes to increasing Saudi Arabia’s GDP over the next decade.”
Ceer is envisaged to draw over $150 million of foreign direct investment, and create up to 30,000 direct and indirect jobs. It is also projected to directly contribute $8 billion to Saudi Arabia’s GDP by 2034, officials said.