Electric Vehicles in Saudi Arabia

Saudi Arabia began investing in electric vehicles (EVs) in 1440 AH / 2018 CE, when the Public Investment Fund (PIF) acquired a stake in Lucid Motors, a company specializing in the manufacturing of electric cars. Lucid later opened an advanced manufacturing plant in Saudi Arabia.

How Electric Vehicles Work

The electric vehicle industry is relatively new and relies on electric power to operate its motors instead of traditional internal combustion engines. These vehicles are powered by rechargeable batteries. The rise in EV production is driven by the global shift toward clean energy. Saudi Arabia, through its Public Investment Fund, is investing in renewable energy, developing recycling companies, and promoting energy efficiency services.

The Importance of the EV Industry in Saudi Arabia

Saudi Arabia’s interest in the EV sector aligns with Vision 2030, aiming to enhance quality of life and promote a green economy by reducing environmental pollution and committing to carbon neutrality by 2060. The country seeks to diversify its economic returns by investing in promising sectors. By developing the EV manufacturing industry and offering incentives to attract foreign investment, Saudi Arabia is strengthening its position as a leading investment destination.

EV Investments in Saudi Arabia

Saudi Arabia entered the EV investment field through the PIF in 1440 AH / 2018 CE, signing an agreement with Lucid Motors to acquire about 67% of the company’s shares for approximately $1 billion and establishing a local EV manufacturing facility in King Abdullah Economic City, north of Jeddah.

In 1443 AH / 2022 CE, the Ministry of Investment announced that Lucid had begun constructing an advanced manufacturing plant in Saudi Arabia with a production capacity of 155,000 vehicles annually and investments exceeding SAR 12.3 billion. The factory, located in the Industrial Valley of King Abdullah Economic City, plans to produce four types of EVs and is expected to reach full capacity by 2028. Two exclusive models will be produced at the Saudi plant, with 95% of production slated for export—supporting the Saudi economy and bolstering supply chains and investment opportunities.

On 12 Rabi' al-Awwal 1445 AH / 27 September 2023, Lucid inaugurated the "AMP-2" facility for EV production in King Abdullah Economic City. In its first phase, the plant will assemble 5,000 Lucid vehicles annually. "AMP-2" is Lucid’s second manufacturing site. Initially, it will reassemble Lucid Air components pre-manufactured at the company’s "AMP-1" facility in Casa Grande, Arizona, USA.

Supporting these efforts, Saudi Arabia launched its first national EV brand, Ceer, which focuses on designing, manufacturing, and selling advanced electric vehicles equipped with technologies such as autonomous driving. Ceer will offer sedans and SUVs in Saudi Arabia and GCC countries, with vehicles expected to be available by 2025.

The launch of Ceer aims to empower the automotive sector, offering new developmental opportunities and diversifying Saudi Arabia’s income sources. Ceer is projected to attract up to SAR 562 million in direct foreign investment, create around 30,000 direct and indirect jobs, and contribute SAR 30 billion to the country’s GDP by 2034.

EV Infrastructure in Saudi Arabia

In January 2018, the Saudi Standards, Metrology and Quality Organization approved the technical regulations for EVs. The first phase allowed individuals to import EVs after meeting requirements. In 1441 AH / 2020 CE, the authority held a virtual workshop titled "EV Infrastructure in the Kingdom," in collaboration with the Ministry of Energy, Ministry of Municipal and Rural Affairs and Housing, the Electricity and Cogeneration Regulatory Authority, and the Saudi Electricity Company. It was announced that commercial import of EVs and their chargers would be permitted, enabling dealerships to begin sales under regulated procedures.

To develop EV charging infrastructure, a special committee named the “Electric Vehicle Charging Infrastructure Committee” was formed, led by the Ministry of Energy and including public and private entities and research centers. In 1442 AH / 2020 CE, the Ministry of Municipal and Rural Affairs and Housing issued technical regulations for EV charging stations in preparation for expanded EV use in the Kingdom.

EV Infrastructure Company

On 23 Rabi' al-Awwal 1445 AH / 8 October 2023, the PIF and the Saudi Electricity Company announced the launch of the Electric Vehicle Infrastructure Company. The PIF holds a 75% stake, while the remaining 25% is owned by the Saudi Electricity Company. The company aims to build infrastructure for fast-charging EV services in over 1,000 locations across the Kingdom, with plans to install more than 5,000 fast chargers by 2030.

On 28 Rabi' al-Thani 1445 AH / 12 November 2023, the company announced EVIQ as its official brand name. On 3 Rajab 1445 AH / 15 January 2024, it launched its first fast-charging station in Riyadh, equipped with two high-power chargers (over 100 kW) capable of charging four vehicles simultaneously.

Autonomous Electric Vehicles

Electric vehicles have reached a new level through AI technology, enabling autonomous driving. The Saudi Data and Artificial Intelligence Authority (SDAIA), in cooperation with the Ministry of Transport and Logistics Services, is working to improve the infrastructure for autonomous vehicles, enhance their safety, and increase transport efficiency. If the technology and regulations develop as expected, autonomous vehicles are projected to become safe and reliable by 2025, commercially available by 2030, and account for half of all new car sales after 2045, becoming fully accessible by 2050.

Several global companies have expressed interest in making substantial investments in Saudi Arabia’s EV sector, including setting up charging stations and service centers. During a recent EV exhibition in Riyadh, executives from five global and local companies revealed plans to invest in this promising field. It’s estimated that the number of battery-powered vehicles in Saudi Arabia could reach 400,000 by 2030.

However, a major challenge facing the EV sector in Saudi Arabia is the limited number of charging stations and service centers. While the authorities aim to increase EV adoption like other advanced nations, the General Authority for Statistics reported that only 779 EVs were imported in 2023. As of now, Riyadh has only eight charging stations, and the entire Kingdom has just 20.