How Bright is the future of Electric Vehicles in Saudi Arabia?

 

Time elapsed when Arab countries were known for their oil and gas exports. Despite being home to the world’s second-largest oil reserves, Saudi Arabia strives to expand its economic horizon away from the traditional way. The kingdom has ambitious plans for economic diversification, citing the dependency on non-renewable energy resources. And with Vision 2030, the government is determined to set the stage for local manufacturers and businesses to showcase their potential while making them competent for the global industry. In fact, Markntel Advisors projects an impressive CAGR for Saudi Arabia's Electric Vehicle Market through 2028. Moving further, let us unfold the possible favorable factors promoting EVs alongside the obstacles slowing their expansion in Saudi Arabia.

Saudi’s first electric vehicle brand, Ceer is here!

Yes, you heard it right. Moving ahead with the vision to expand the automotive sector, His Royal Highness Crown Prince announced the first Saudi electric vehicle brand, Ceer, substantiating the Kingdom’s obligatory effort towards achieving green mobility.

As a result of the joint venture between Foxconn and the Public Investment Fund(PIF), the brand intends to take over the arena of autonomous driving technologies and infotainment with expanded product portfolios. In addition, BMW is to license component technology involved in manufacturing.

With this launch, the government is affirmed to spark a new ecosystem likely to cater not only to domestic needs but also result in large influx of foreign investment within the Kingdom. Over US$150 million of FDI is expected with Ceer, apart from creating up to 30,000 direct and indirect jobs and contributing to Saudi Arabia’s GDP with US$8 billion by 2034. Being a pioneer in EVs, the brand seeks to design, manufacture and sell a range of vehicles, including SUVs and sedans, to be available by 2025 across the entire MENA region.

Oil Rich Dominion Switching to Green Mobility. But Why?

Apparently, a significant portion of the greenhouse gas emissions is brought on by the transportation sector. So, leaders assembled for COP27 in Egypt put a particular emphasis on the urgent need for greener ways to move people and products around. Citing this, more electric automobiles are expected, followed closely by electric trains, hydrogen-powered aircraft, and more environment-friendly shipping. It should come as no surprise that by 2035, the mainstream automobile would turn entirely electric, given EVs are often up to four times more energy-efficient than cars with internal combustion engines. On top of it, the EVs' buzz will likely pick up, with Saudi Arabia announcing aspirations to become net zero by 2060. Thus, turning to non-renewable sources is no longer a choice but a necessity for the kingdom.

One Step Closer with Auto EV Shows

With Electromin, the first e-mobility service provider serving as the event's title sponsor, the inaugural EV Auto Show in Saudi Arabia began in November. The three-day event in Riyadh was open to everyone. The auto show offered a common platform for the general public to interact with several business leaders and organizations that came together to exhibit the newest electric cars, technologies, and services, all aiming to electrify the kingdom.

The conference will be centered on charging technology, and infrastructure and will be dedicated to EV industry experts, EV charging equipment manufacturers, and developers of charging infrastructure. It will also provide a forum for discussion of the industry's development challenges and opportunities, as well as high-level networking for those involved in EVs.

For instance, together with Abunayyan Trading Corporation, one of the most reputable names in the energy and water sectors in Saudi Arabia and the wider Gulf, Schneider Electric introduced EVlink Smart Charger in Saudi Arabia for the first time at the EV Auto Show to highlight the nation’s electric mobility and sustainability goals.

All Set, So What’s Stopping

Range anxiety has been one of the most often cited deterrents for potential EV buyers. It is because extreme temperatures, which are pretty common in Saudi Arabia, significantly reduce the range of EV batteries. In addition, the requirement for more air cooling in the car and battery degradation brought on by changes to electrode films, phase shifts to LCO electrodes, an increase in Warburg components, and cell obstructions all contribute to this being amplified. However, the good news is many automakers are working on ways to increase EV range in sweltering weather. High sun irradiation also offers a chance to install solar canopies next to EV charging stations, providing both on-site power generation for the chargers and shade for the cars.

In a Nutshell

With numerous firsts in 2022, Saudi Arabia has already plunged into the world of electrification, paving the way for FDIs while garnering the attention of local investors as well. Other than creating numerous jobs, the joint effort of e-mobility solutions providers and the government, coupled with international events including auto EV shows and global expos, focusing on sustainable driving would definitely open up new avenues for Electric vehicles. Saudi Vision 2030 is aiding the extension of EVs while ensuring the advancement of the promising sectors, particularly automotive, in the Kingdom, at least for the next decade.