Saudi Arabia has announced plans to produce 500,000 electric cars per year by 2030, as per the kingdom’s Investment Minister Khaled Al Faleh, reported by Gulf News.
Minister Faleh announced a new partnership between Saudi Arabia and a foreign electric automaker in the first half of 2023 through the Asharq Al Awsat newspaper.
“There will be a big hub for electrical industries in Saudi Arabia.
This is a big figure. Part of this output will be exported. This means this industry should be based on competitiveness and cost-effectiveness.”
Investment Minister Khaled Al Faleh
He further stated that the kingdom collaborates with major companies, including Foxconn, guaranteeing supply chains allow for competitiveness.
“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.”
Investment Minister Khaled Al Faleh
Saudi Arabia’s EV adoption effort
Saudi Arabia debuted its first EV brand Ceer with the full support of Crown Prince Mohammad bin Salman in November. Ceer would develop and build a wide range of EVs for Saudi Arabian customers and the Mena region.
The launch of Ceer aligns with the Saudi Public Investment Fund’s (PIF) strategy. The Crown Prince-led strategy aims to develop prospective domestic sectors to support economic diversification in the country.
Moreover, it also supports Saudi Arabia’s initiatives to reduce carbon emissions and promote sustainability.
In addition, the kingdom is developing a new sector and an ecosystem that will result in the following improvements, as per the Crown Prince:
- Draw both domestic and foreign investment.
- Generate employment opportunities for local talent
- Empower the private sector
- Help boost Saudi Arabia’s GDP over the following ten years
Indeed, Saudi Arabia is stepping up its electrification initiatives. The transportation industry is an excellent starting point for promoting sustainable technologies to achieve net-zero emission targets.
