PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals

At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom. AN photo
At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom. AN photo
Short Url
Updated 17 September 2024
Follow

PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals

PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals
  • Initiative supports Kingdom’s ambition to convert 30% of Riyadh’s vehicles to electric by 2030
  • Goal is part of a larger strategy to reduce emissions in Riyadh by 50% by 2060

RIYADH: US electric carmaker Lucid Motors plans to export a significant share of its vehicles produced in Saudi Arabia to both regional and global markets, according to a senior official.

At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom.

This initiative supports Saudi Arabia’s ambition to convert 30 percent of Riyadh’s vehicles to electric by 2030. This goal is part of a larger strategy to reduce emissions in the capital by 50 percent, contributing to the country’s broader aim of achieving carbon neutrality by 2060.

“We are producing vehicles in the Kingdom, (and) a large part of those will be exported within the region and to the rest of the world as well,” Rizvi said. 

At the same panel, Mohammed Abuazzah, chief public relations officer at Saudi EV brand Ceer, discussed the company’s strategy. “We have a portfolio — a Saudi-inspired portfolio — that is innovative, inspirational, and can answer what the people of Saudi Arabia and the Gulf Cooperation Council, and hopefully globally, expect from an EV,” Abuazzah said. 

He emphasized the importance of engaging with customers and expanding the company’s sales network in Saudi Arabia and the GCC. 

Ulf Schulte, chief operating officer at Electric Vehicle Infrastructure Co., announced plans to expand the company’s charging network. “So, there are a lot of building blocks we are working on, and eventually now ramping up the number of sites. Our first site in Jeddah is going live today or tomorrow,” Schulte said.  

“Our focus this year is on Riyadh, Jeddah, and Dammam, but we’re working to build a Kingdom-wide network to enable a long-distance EV ecosystem,” he added. 

Andreas Flourou, group head of mobility at Red Sea Global, outlined the company’s commitment to sustainability. “We’re opening new hotels every quarter at the moment, and mobility is one of the foundations of our ethos based around sustainability and protecting the environment,” Flourou said. 

“We’re opening a new hotel, Amaala, by the end of next year. This will mean hundreds of additional vehicles, guest vehicles, staff transportation, buses, sea planes, and marine vessels. We need an increase in chargers within our destinations,” he added.  

Gary Flom, CEO of National Transport Solutions Co., emphasized the role of EVs in transforming Saudi Arabia’s infrastructure. 

“Today, we are witnessing a revolution, a revolution that is driving toward a future where electric vehicles are not merely an option but a cornerstone of our nation’s transportation infrastructure,” Flom said. 

“The rise of Saudi Arabia’s electric vehicle sector reflects a broader shift toward sustainability, innovation, and resilience. This transformation, catalyzed by the visionary leadership of His Royal Highness, Crown Prince Mohammed bin Salman, is positioning the Kingdom at the forefront of the global transition to clean energy,” the CEO added. 

He added that National Transportation Solutions Co. is proud to be a key player in the ongoing transformation, which began three years ago. “NTSC was born with a clear and ambitious mission to provide Saudi fleet operators with the same or better tools, data, and operational efficiencies long enjoyed by their colleagues in the US and Europe.” 

Also present in a separate session at the event, Omaimah Bamasag, deputy of transport enablement at the Transportation General Authority, highlighted that the event showcases the collaboration between the public and private sectors in advancing new technology skills, aligning with the goals of Vision 2030 and the National Strategy. 

Hosted at the Riyadh International Convention and Exhibition Center from Sept. 17 to 19, this three-day event highlights Saudi Arabia’s commitment to EVs and sustainable technology, in line with Vision 2030. 

The exhibition is a key event for the Kingdom’s growing EV ecosystem, gathering automotive manufacturers, charging solution providers, policymakers, and consumers to discuss the future of mobility in the region. 

Attendees will explore various EVs, charging solutions, and green technologies. The event will feature interactive seminars and panel discussions, offering opportunities to engage with industry experts and innovators. 


OPEC chief tells COP29 oil is a gift from God

OPEC chief tells COP29 oil is a gift from God
Updated 8 sec ago
Follow

OPEC chief tells COP29 oil is a gift from God

OPEC chief tells COP29 oil is a gift from God

BAKU: OPEC Secretary-General Haitham Al-Ghais on Wednesday told the COP29 climate summit in Baku that crude oil and natural gas were a gift from God, and that global warming talks should focus on cutting emissions not picking energy sources.

His words echoed those of Azerbaijan President Ilham Aliyev, who used his opening address to the summit to hit back at Western critics of his country’s oil and gas industry, and also described those resources as a gift from God.

“They are indeed a gift of God,” Al-Ghais said in a speech at the conference.

“They impact how we produce and package and transport food and how we undertake medical research, manufacture, distribute, medical supplies. I could go on forever.”

He said that world governments, which agreed to limit planetary warming to 1.5 degrees Celsius above pre-industrial levels at the 2015 summit in Paris, could achieve their climate targets without shunning petroleum.

“The focus of the Paris Agreement is reducing emissions, not choosing energy sources,” he said.

OPEC has said that technologies like carbon capture can tackle the climate impact of burning fossil fuels.

Mohamed Hamel, secretary-general of the Gas Exporting Countries Forum, a grouping of gas exporter nations, also spoke to the conference on Wednesday in support of fossil fuels.

“As the world’s population grows, the economy expands, and human living conditions improve, the world will need more natural gas, not less,” he said.

He added that he hoped that a COP29 deal on international climate finance would allow support for natural gas projects to help countries transition away from dirtier fuels like coal.

“The outcome of COP 29 should facilitate financing for natural gas projects and scaling up cleaner technologies such as carbon capture, utilization and storage,” he said.

“This is crucial for ensuring just inclusive and orderly energy transitions that leave no one behind.”

Climate scientists say the world is now likely to cross the 1.5 degrees Celsius threshold — beyond which catastrophic climate impacts could occur — in the early 2030s, if not before.

The world is currently on track for as much as 3.1 Celsius of warming by the end of this century, according to the 2024 UN Emissions Gap report.


ACWA Power, ITOCHU Corp. sign MoU at COP29 to accelerate global clean energy transition

ACWA Power,  ITOCHU Corp. sign MoU at COP29 to accelerate global clean energy transition
Updated 19 min 45 sec ago
Follow

ACWA Power, ITOCHU Corp. sign MoU at COP29 to accelerate global clean energy transition

ACWA Power,  ITOCHU Corp. sign MoU at COP29 to accelerate global clean energy transition

RIYADH: Saudi Arabia’s ACWA Power has entered into an agreement with Japan’s ITOCHU Corp. during COP29 to strengthen investments in environmental infrastructure and renewable energy across the Middle East, Central Asia, and Africa.

As outlined in a press release, the memorandum of understanding aligns with ACWA Power’s broader mission to address the “energy quadrilemma” — ensuring energy and water are provided affordably, reliably, sustainably, and rapidly.

Both companies share a vision for accelerating the global energy transition, leveraging their unique strengths to create transformative solutions in renewables and water desalination.

Marco Arcelli, CEO of ACWA Power, expressed his enthusiasm: “We are thrilled to strengthen our strategic collaboration with ITOCHU Corp. through this new memorandum of understanding, signed at COP29 in Azerbaijan.”

He further added: “This partnership — which spans across various geographies and technologies — will benefit from our expertise in renewable energy sources, water desalination, and green hydrogen.”

Arcelli highlighted the company’s commitment to achieving net-zero emissions by 2050, a full decade ahead of Saudi Arabia’s national target, noting that it “aligns perfectly with the global sustainability agenda.”

The MoU, in collaboration with ITOCHU’s extensive network and resources, will facilitate mutual growth ambitions and open up new opportunities for Japanese investors in the clean energy sector, according to the CEO. “Together, we are poised to make significant strides in accelerating the energy transition and addressing climate change challenges,” he concluded.

Headquartered in Riyadh, ACWA Power is the world’s largest private water desalination company and a leader in renewable energy and green hydrogen. Its portfolio spans 90 projects in 13 countries, with a total investment value of $94.7 billion.

ITOCHU Corp., founded in 1858, is one of Japan’s leading multinational trading and investment companies. With operations in 61 countries and approximately 90 bases worldwide, ITOCHU boasts a diversified portfolio that includes renewable energy projects and water infrastructure.

Through this partnership with ACWA Power, “ITOCHU aims not only to contribute to regions expecting economic growth and population increases but also to achieve a balance between responding to societal needs and business expansion.”

The collaboration is expected to advance progress in renewable energy projects, including high-efficiency combined cycle power plants and green hydrogen production, with both companies dedicated to addressing climate change and advancing global sustainability initiatives.

Earlier this year, ACWA Power signed multiple agreements with Japanese companies on May 21, during the Saudi-Japan Vision 2030 Business Forum, to further the sustainable energy transition and attract foreign investment.

The forum, held in Tokyo, brought together over 300 industry officials and leaders to discuss ways to enhance trade, investment, and cultural ties.


Saudi Arabia leading clean-energy revolution with $180bn for green economy, climate tech: Agility

Saudi Arabia leading clean-energy revolution with $180bn for green economy, climate tech: Agility
Updated 20 November 2024
Follow

Saudi Arabia leading clean-energy revolution with $180bn for green economy, climate tech: Agility

Saudi Arabia leading clean-energy revolution with $180bn for green economy, climate tech: Agility

RIYADH: Saudi Arabia is accelerating its leadership in sustainability, committing over $180 billion to a green economy while driving innovation in climate technologies, according to a new report.

According to an analysis by Agility, the Kingdom has become a dominant force in environmental solutions, accounting for 75 percent of climate technology investments in the Middle East.

The nation’s efforts include advancements in renewable energy, circular economy initiatives, and climate adaptation, solidifying its regional and global leadership.

The analysis commends the Kingdom’s policymakers for their ambitious targets under the Saudi Green Initiative and Vision 2030. NEOM, the mega-city development, is set to run entirely on renewable energy, illustrating this commitment, the report stated.

This comes as Saudi Arabia addresses significant environmental challenges, with 95 percent of its territory classified as desert and much of its habitable land at risk of degradation.

“Saudi Arabia has moved to the forefront of the clean-energy revolution and the drive to innovate and find answers to the global climate challenge. Very few countries can match its determination or its record of investment and leadership in sustainability,” Tarek Sultan, vice chairman of Agility, said.

Projections warn of more frequent droughts, prolonged heat waves, and economic strain if emissions are not curtailed. These factors underscore the importance of the Kingdom’s climate adaptation and mitigation efforts.

The report identifies further priorities, including accelerating renewable energy projects, enhancing corporate resource efficiency, expanding public transport, and improving air quality.

Key undertakings include connecting 2.8 gigawatts of renewable energy to the national grid and achieving renewable power generation goals for over 520,000 homes.

Saudi Arabia also aims to lead the global hydrogen market, targeting 4 million tonnes of green hydrogen production annually by 2035, with NEOM hosting the world’s largest hydrogen plant.

While businesses trail policymakers in adapting sustainability measures, the report reveals promising signs.

More than half of surveyed Saudi executives plan to adopt green technologies, and 54 percent of companies have allocated at least 5 percent of capital expenditure toward sustainability.

The report positions the Kingdom as a regional powerhouse and a potential global benchmark for sustainable practices.


Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s
Updated 20 November 2024
Follow

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

Saudi economic growth to accelerate to 4.7% in 2025: Moody’s

RIYADH: Saudi Arabia’s economy is set to grow by 1.7 percent this year, before accelerating to 4.7 percent in 2025 and 2026, driven by government-backed projects aimed at diversifying the Kingdom’s economy, according to Moody’s. 

The credit rating agency’s forecast exceeds previous estimates, including the Saudi government’s own 2024 gross domestic projection of just 0.8 percent. Moody’s outlook surpasses the Kingdom’s pre-budget statement, which had estimated a 4.6 percent growth in 2025. 

The 2025 forecast aligns with Saudi Arabia’s planned expenditure for the year, set at $343 billion, underscoring the government’s commitment to economic expansion through Vision 2030. These efforts focus on diversifying the economy beyond oil, with major investments in sectors like technology, tourism, renewable energy, and infrastructure. 

“In the Middle East, hydrocarbon-exporting countries are seeking to diversify their economies away from oil. Government-backed projects tied to this aim will drive strong growth in Saudi Arabia next year,” said Moody’s in its latest report. 

The Kingdom’s strategy centers on large-scale “giga-projects” funded by its Public Investment Fund, including the development of the futuristic city NEOM. These initiatives are expected to play a crucial role in sustaining economic growth over the coming years. 

Moody’s positive projections align with last month’s forecasts from the International Monetary Fund, which predicted 1.5 percent growth for Saudi Arabia’s economy in 2024 and 4.6 percent in 2025, while the World Bank forecasted 1.6 percent growth this year and 4.9 percent in 2025. 

Stable inflation 

Moody’s analysis noted that Saudi Arabia’s inflation rate is expected to remain stable at 1.6 percent in 2024 and 1.9 percent in 2025, before rising slightly to 2 percent in 2026. 

Earlier this month, Saudi Arabia’s General Authority for Statistics reported that inflation reached 1.9 percent in October compared to the same month in 2023. 

The Kingdom’s inflation rate remains among the lowest in the Middle East, reflecting effective measures to stabilize the economy and counter global price pressures. 

In September, S&P Global forecasted Saudi Arabia’s economy to grow by 1.4 percent in 2024 and 5.3 percent in 2025, driven by the Kingdom’s diversification strategy. 

Regional outlook

The report projects that the UAE, Saudi Arabia’s Arab neighbor, will see its economy grow by 3.8 percent in 2024 and 4.8 percent in 2025. 

Moody’s forecasts that inflation in the UAE will remain higher than in Saudi Arabia, at 2.3 percent in 2024 and 2 percent in 2025. 

The analysis also predicts Egypt’s economy will expand by 2.4 percent this year, accelerating to 4 percent in 2025. However, Egypt is expected to face a high inflation rate of 27.5 percent in 2024, dropping to 16 percent in 2025. 

Emerging markets 

The broader outlook for emerging markets is positive, with Moody’s noting that economic growth is stable and inflationary pressures are easing. 

The credit agency expects conditions to improve in 2025, driven by steady growth, declining inflation, and monetary easing in both developed and emerging economies. However, credit risks remain a concern, with tighter credit spreads and rising bond issuance reflecting investor appetite for emerging market assets. 

“In 2025, credit conditions within emerging markets are expected to further stabilize, driven by steady economic growth, slowing inflation, and monetary easing in developed and emerging markets,” said Vittoria Zoli, analyst at Moody’s Ratings. 

She added that these conditions are expected to facilitate refinancing and cash flow growth, while reducing asset risk. “However, credit risks persist,” said the analyst. 

Emerging markets such as India are projected to continue growing strongly, with the Indian economy forecast to expand by 7.2 percent in 2024 before moderating to 6.6 percent in 2025. In contrast, China’s growth is expected to slow to 4.2 percent in 2025, following a 4.7 percent growth in 2024. 

At the regional level, economic growth is expected to remain highest in the Asia-Pacific region. The report states that India and Southeast Asian countries will continue to benefit from the global reconfiguration of supply chains, as nations and companies diversify trade and investment away from China. 

Moody’s noted that the situation in Latin America is mixed, though growth will remain strong compared to the past decade. Economic growth in countries like Mexico, Argentina, and Brazil is projected to slow in 2025, while smaller economies like Chile, Colombia, and Peru will see steady expansion. 

“We expect aggregate gross domestic product growth for 23 of the largest emerging market economies will slow to 3.8 percent in 2025 from 4.1 percent in 2024, with continued wide variation by region and country,” said the credit rating agency. 

Moody’s attributed this slight slowdown to dampened growth in China, although it noted that domestic demand will drive growth in smaller emerging markets. 

In October, the IMF projected that emerging market economies would see a GDP growth rate of 4.2 percent in both 2024 and 2025. 

Moody’s report emphasized that governments in emerging markets are benefiting from stabilizing GDP growth and easing financial conditions, though debt levels remain high. 

“Emerging markets governments’ average ratio of debt to GDP will decrease slightly next year as lower interest rates and stronger revenues help to narrow budget deficits. But mandatory spending – including on debt obligations – limits fiscal improvements,” said Moody’s. 

It added: “One key risk to the EM outlook is the potential for US policy changes. In particular, an expansion of tariffs or renegotiation of existing trade agreements would likely disrupt global trade, hinder global economic growth, increase commodity-price volatility and subsequently weaken emerging markets currencies.” 

Banking outlook 

According to the report, banks in the Gulf Cooperation Council region have strong growth prospects, driven by government efforts to expand the non-energy sector. 

Earlier this month, Moody’s stated in another report that Saudi Arabia’s Vision 2030 program, aimed at diversifying the Kingdom’s economy, will accelerate the growth of the banking sector in the coming years. 

The analysis also highlighted that the development of major projects in the Kingdom, along with the infrastructure required to host events such as the 2027 Asia Cup, 2029 Asian Winter Games, Expo 2030, and the 2034 FIFA World Cup, are expected to create significant business and lending opportunities for banks. 

Moody’s noted that the operating environment for banks in emerging economies will remain largely stable, supported by steady GDP growth and policy-rate cuts, which will boost credit growth and asset quality. 

However, the credit rating agency warned that profitability may decline for banks in several countries due to imbalances in interest rate adjustments between loans and deposits. 

The report also cautioned that geopolitical tensions and potential shifts in US policy could affect the credit risks of banks in emerging economies. 

“Profitability will deteriorate for many banks because they typically reduce interest rates on loans faster than on deposits as they seek to attract and retain customers. This squeezes net interest margins,” said Moody’s. 

It added: “Geopolitical conflicts and resulting restrictions on cross-border and investment flows are a significant credit risk for EM banks. And the potential for postelection changes to key US policies, including financial and technology regulation, could alter the operating environment.” 


Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says
Updated 20 November 2024
Follow

Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

Saudi industrial, mining sectors offering lucrative opportunities for entrepreneurs, minister says

JEDDAH: Saudi Arabia’s industrial and mining sectors are harboring promising opportunities for youth and entrepreneurs, the Kingdom’s industry minister has insisted.

Speaking during the Misk Global Forum 2024 in Riyadh, Bandar bin Ibrahim Alkhorayef said that these opportunities go beyond direct investment to include the development of innovative ideas to improve production efficiency, manufacturing quality, and energy conservation in industrial facilities.

He explained that institutions working in industrial and mineral resources have introduced a range of enablers and initiatives to support the growth of entrepreneurial ventures and facilitate investment for young innovators in both sectors, according to the Saudi Press Agency.

The Kingdom ranked third in the Global Entrepreneurship Monitor report for 2023-2024 – a study which assesses the ecosystems of countries worldwide.

Saudi Arabia showed significant progress, with its National Entrepreneurship Context Index score increasing from 5 in 2019 to 6.3 in 2022 and 2023.

The analysis highlighted that this reflects the country’s successful efforts to diversify its economy and foster a supportive climate for business owners. The report also underlined female entrepreneurship, with eight women starting new companies for every 10 men in 2023.

Alkhorayef added that the introduced programs include financial solutions, including the 1K Miles program, designed to help entrepreneurs turn ideas into projects, and the Industrial Hackathon, which allows young innovators to present creative solutions to challenges faced by industrial facilities.

The minister further highlighted that the Kingdom has become a global hub for entrepreneurs, offering them the opportunity to pitch innovative ideas and test their success. He emphasized that the government’s unwavering support for youth creates vast opportunities for the success of their projects.

He emphasized that Saudi Arabia has recently focused on leveraging its strategic assets to develop its industrial sector and boost competitiveness. This includes utilizing its natural resources and technological advancements to compete globally in emerging industries and establish itself as a key player in international supply chains.

During the previous day’s event, the Co-Chair of the Bill and Melinda Gates Foundation, Bill Gates, highlighted the crucial role of innovation in addressing global development challenges and improving the quality of life for vulnerable populations.

Gates emphasized the importance of investing in technology and education as the foundation for a sustainable future, underlining that such investments empower future generations to positively impact their communities.

He praised Saudi Arabia’s leadership in empowering youth, highlighting initiatives like MGF 2024, which focuses on developing young people’s skills and promoting innovation and entrepreneurship. He called the forum a global model worthy of emulation.

Gates also called for strengthened international cooperation to develop joint solutions addressing current challenges.

The co-chair underscored the importance of fostering creativity, teamwork, and collective thinking to build a more sustainable future, highlighting that global collaboration could drive transformative advancements that improve the lives of millions.

The MGF 2024 announced the launch of the “Misk Grand Challenges” initiative in partnership with the Gates Foundation, aiming to inspire young people to propose innovative solutions to global education and citizenship issues, fostering creativity and engaging brilliant minds to address pressing development challenges.

During a panel discussion at the forum, Abdullah Al-Saleem, CEO and co-founder of Mushtari, offered valuable insights on when and how entrepreneurs should seek guidance for their ventures.

“Every time is the right time to seek help,” Al-Saleem said, emphasizing the importance of continuous learning and consultation in business development.

He advocated for a two-pronged approach to seeking advice, distinguishing between general business consultants and industry-specific experts.

“There are two people you have to seek help from: People that know generally about the industry, and people that know specifically about the industry,” he added.