Saudi Arabia’s new EV company: Everything you should know

The Kingdom of Saudi Arabia (KSA) has launched a new electric vehicle (EV) infrastructure company, which has the capability to set up 5,000 fast chargers across the country by 2030.
The Public Investment Fund – the sovereign wealth fund of Saudi Arabia – and Saudi Electricity Company – electric power distribution company – launched the new electric vehicle infrastructure company in partnership.

Saudi Arabia’s new EV company

Saudi Arabia’s Public Investment Fund (PIL) and Saudi Electricity Company have planned to established the presence of the new EV company in more than 1,000 locations across Saudi Arabia.

Saudi Arabia’s Public Investment Fund owns a 75 per cent stake in the new electric vehicle infrastructure company. Saudi Electricity Company (SEC) owns a 25 per cent stake in the company.

The company has been established in line with applicable regulations and standards. Saudi Arabia aims to boost the local automotive ecosystem through collaboration between Saudi Arabia’s Public Investment Fund (PIL) and Saudi Electricity Company (SEC). Saudi Arabia also aims to promote private sector participation in the automotive industry.

Saudi Arabia’s Public Investment Fund (PIL) said in a statement on Monday that the new EV company would “spearhead the EV transition.”

What did experts say?

Omar Al-Madhi, the co-head of MENA (Middle East & North Africa) direct investments at Saudi Arabia’s PIF, said, “Through our partnership with SEC, we will be able to accelerate the creation of synergies across the EV supply chain in line with Saudi Vision 2030.”

According to Global Market Researcher Fortune Business Insights, the EV market is projected to increase to about $1.6 trillion by 2030 from an estimated $500 billion in 2023.

Saudi Arabia’s first electric vehicle brand

Last year, the Crown Prince of the Kingdom of Saudi Arabia, Mohammed bin Salman Al Saud, launched Ceer, the country’s first electric vehicle brand. The EV from the brand would be available by 2025. It is set to attract over $150 million of foreign direct investment (FDI). It is also projected to contribute $8 billion to Saudi Arabia’s economy by 2034.

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Saudi Arabia’s Crown Prince said, “The Kingdom is not just building a new automotive brand, we are creating an ecosystem that attracts international and local investments and creates job opportunities for people.”