https://arab.news/zr2q5
RIYADH: A new investment company tasked with developing local supply chain capabilities for the automotive and mobility industry in Saudi Arabia has been announced by the Kingdom’s Public Investment Fund.
Tasaru Mobility Investments will drive investments and partnerships with local and global private sector companies, according to a statement from PIF.
It aims to support sector growth and deliver long-term returns by localizing manufacturing expertise and technologies to accelerate the development of Saudi Arabia’s electric vehicle and autonomous mobility ecosystem.
By boosting local capabilities, the company will support the Kingdom’s wider efforts to become a global leader in this industry.
The fund revealed that the company’s first investment is a joint venture with Zamil Group Real Estate Co., Abdullah Ibrahim Alkhorayef Sons Co. and Dar Al-Himmah Projects Co. Ltd. that will develop an automotive logistics hub in King Abdullah Economic City.
Michael Muller, who has more than 25 years of experience in the automotive industry, has been appointed as the CEO of TMI.
He has previously held several senior management positions in companies like Porsche AG and Volkswagen Group.
“Through a combination of strategic investments and private sector partnerships, Tasaru Mobility Investments aims to enhance the local supply chain and manufacturing capabilities to strengthen the end-to-end ecosystem for Saudi Arabia’s electric vehicle and autonomous mobility industries,” said Omar Al-Madhi, co-head of direct investments in the Middle East and North Africa for PIF and chairman of TMI.
He added: “The establishment of the company demonstrates PIF’s commitments to diversify the economy, improve sustainability and localize technology and sector-specific knowledge.”
TMI is also expected to accelerate Saudi Arabia’s energy transition journey, as the Kingdom aims to achieve net-zero emissions by 2060.
The fund has already made significant investments in the mobility sector, including establishing Saudi Arabia’s first national EV brand, Ceer, in partnership with Foxconn and investing in US-based Lucid Motors.
In September, Lucid announced that the company’s first international manufacturing plant in the KAEC started functioning with plans to manufacture 155,000 EVs per year eventually.
In August, Saudi Arabia’s Ministry of Industry and Mineral Resources said that Ceer is expected to contribute SR30 billion ($7.9 billion) to the Kingdom’s gross domestic product by 2034.
The ministry added that Ceer’s factory will attract over SR562 million in foreign direct investment and create up to 30,000 direct and indirect jobs.