EV Auto Show 2024: Riyadh set for key exhibition, spotlighting Saudi green goals

The show will serves as a platform for knowledge exchange, focusing on advancements in battery technology, charging infrastructure, and regulatory developments. File
Short Url
Updated 16 September 2024
Follow

EV Auto Show 2024: Riyadh set for key exhibition, spotlighting Saudi green goals

  • Exhibition is a central event for the Kingdom’s expanding EV ecosystem
  • Attendees will have the chance to explore a variety of EVs, charging solutions, and green technologies

RIYADH: The rapidly evolving transport sector in Saudi Arabia is set for a significant boost with the return of the EV Auto Show to Riyadh, taking place from Sept. 17 to 19. 

Hosted at the Riyadh International Convention and Exhibition Center, this three-day event aligns with Saudi Arabia’s Vision 2030, emphasizing its commitment to electric vehicles and sustainable technology.

The exhibition is a central event for the Kingdom’s expanding EV ecosystem. It brings together key stakeholders, including automotive manufacturers, charging solution providers, policymakers, and consumers, to discuss the future of mobility in the region.

Attendees will have the chance to explore a variety of EVs, charging solutions, and green technologies. The show will feature interactive seminars and panel discussions, allowing participants to engage with industry experts and innovators.

As Saudi Arabia aims to manufacture and export over 150,000 electric cars by 2026, such events are vital for advancing the shift toward clean technology and sustainable energy sources. 

The show also serves as a platform for knowledge exchange, focusing on advancements in battery technology, charging infrastructure, and regulatory developments. 

This exchange is crucial for overcoming current challenges and accelerating the Kingdom’s transition to electric mobility.

Shift in perception

Saudi Arabia’s EV market is growing, fueled by government initiatives, public-private partnerships, and increasing consumer interest.

Ravi Ravichandran, president of Ford Middle East, told Arab News: “The electric vehicles market in Saudi Arabia is undergoing rapid expansion, largely driven by the Kingdom’s Vision 2030, which seeks to diversify the economy beyond its traditional reliance on hydrocarbons.”

He noted a rise in consumer interest in EVs, citing a recent survey that shows 40 percent of Saudi consumers are considering purchasing one within the next 12 months. This reflects a growing shift away from traditional internal combustion engine vehicles.

Among those surveyed, hybrid vehicles were the most popular choice, followed by plug-in hybrids and pure battery EVs. 




Ravi Ravichandran, president of Ford Middle East. Supplied

Ravichandran added that nearly one third of Saudis are already exploring the EV market. He also highlighted that 81 percent of respondents reported an improved view of electric vehicles over the past year, with many now perceiving them as sleek, enjoyable to drive, and technologically advanced. This indicates a positive shift in public perception.

Infrastructure development

A significant challenge in promoting EV adoption is the development of a comprehensive charging infrastructure. 

The Ford executive highlighted that “range anxiety” remains a significant issue for consumers who worry about the availability of charging stations for long trips or daily commutes. 

To address this, he added: “The Saudi government, along with regional stakeholders, is actively working to build a robust charging network.”

Electromin is a key player in expanding the charging infrastructure across the Kingdom.

Mark Notkin, chief innovation officer at Electromin, told Arab News: “The widespread implementation of fast charging services across Riyadh hinges on several key factors including governmental incentives, EV adoption rates, regulatory approvals, and partnerships with the private sector.” 

These factors will influence the timeline for making fast charging facilities widely available.

Electromin has already installed over 100 chargers across Saudi Arabia, all operated by the company and accessible via its app. The company is focusing on increasing the availability of fast charging services in high-traffic areas, including major malls in Riyadh and Jeddah.




Mark Notkin, chief innovation officer at Electromin. Supplied

Localization and talent development

An essential component of developing a sustainable EV ecosystem is the localization of talent in the infrastructure sector. 

Vision 2030 is driving companies to invest in training and hiring local professionals. 

Notkin said: “The localization rate of Saudi employees in the EV infrastructure sector is rising, driven by Vision 2030. Companies are increasingly training and hiring local talent in roles such as project management, marketing, and operations.”

This growing localization is expected to continue as the sector expands, contributing to job creation and fostering technological expertise in the Kingdom.

Ravichandran also highlighted the job creation potential, and said: “The expansion of EV manufacturing, charging infrastructure, and related services will generate significant new job opportunities, playing a crucial role in Saudi Arabia’s economic diversification. 

“As more local talent is employed in the EV sector, this will in turn foster the transfer of advanced technologies, particularly in battery production, charging solutions, and software development.”

Creating awareness 

Increasing consumer awareness about the benefits of EVs is essential for widespread adoption. 

However, misconceptions continue to pose barriers. Ravichandran said: “Nearly one-third of Saudis mistakenly believe EV batteries cannot be recycled, half think EVs require routine oil changes, and one-quarter incorrectly assume that EVs still need fuel to operate.” 

These misconceptions highlight the need for “targeted education to inform the public about the realities of owning and maintaining an electric vehicle.”

Efforts are underway to enhance consumer understanding of the long-term cost savings associated with EVs.  “Consumers need to understand the long-term cost savings, such as reduced fuel consumption and lower maintenance expenses,” said Ravichandran, adding: “Unlike traditional internal combustion engine vehicles, EVs have fewer components to maintain, making them a more cost-effective and reliable option over time.”

Future outlook

Looking ahead, the Saudi EV market is expected to undergo significant evolution over the next five to 10 years, driven by key developments and innovations.

Ravichandran believes that a “pivotal focus will be on accelerating the rollout of advanced charging infrastructure, with particular emphasis on integrating cutting-edge technologies to enhance convenience and efficiency for customers.”

He also highlighted advancements in local manufacturing capabilities, predicting that innovations in EV production processes and materials will likely drive down costs and increase competitiveness.


IMF hails Oman’s economic policies amid 6.2% budget surplus 

Updated 4 sec ago
Follow

IMF hails Oman’s economic policies amid 6.2% budget surplus 

RIYADH: Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. 

In its 2024 Article IV consultation, the International Monetary Fund attributed these figures to effective economic management.

Despite higher social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, highlighting the government’s commitment to financial discipline.    

Government debt as a percentage of GDP also declined further, reaching 35 percent in 2024, marking continued improvement in Oman’s economic fundamentals.   

The findings align with the broader resilience observed in the Gulf Cooperation Council region, with an IMF report released in December showing GCC economies have successfully weathered recent shocks, supported by strong nonhydrocarbon growth and ongoing reforms.  

The latest analysis from the financial agency show that Oman’s economic resilience has been recognized internationally, with its sovereign credit rating recently upgraded to investment grade.

Additionally, the banking sector remains sound, with profitability recovering to pre-pandemic levels, ample capital and liquidity buffers, and strong asset quality.    

While overall economic growth was tempered by OPEC+ oil production cuts, the IMF noted that Oman’s economy grew by 1.2 percent in 2023 and accelerated to 1.9 percent year on year in the first half of 2024.     

This expansion was primarily supported by a 3.8 percent increase in nonhydrocarbon sectors such as construction, manufacturing, and services during the same period, it added.    

Nonhydrocarbon activity is expected to remain a key driver of medium-term growth, supported by significant private sector investments.   

The nation predicts a modest 2.7 percent growth in GDP this year, while the IMF projections point to a higher 3.1 percent expansion.   

The country’s Inflation has continued to ease, declining to 0.6 percent during the first 10 months of 2024, down from 1.0 percent in 2023. This decrease reflects a contraction in transport prices and a moderation in food inflation.   

The IMF noted that Oman’s economic outlook is balanced but faces external and domestic risks. On the downside, global geopolitical tensions and a potential economic slowdown, particularly in China, could impact trade, tourism, and foreign direct investment.    

Lower-than-expected oil prices amid a potentially oversupplied energy market in 2025 also pose risks to the fiscal and external positions. It added.    

Domestically, delays in reform implementation and uncertainty around the global energy transition could hinder Oman’s diversification efforts.   

On the upside, Oman could benefit from higher oil prices, faster-than-expected global economic growth, and accelerated reforms and investments under Oman Vision 2040.   

The reform agenda includes initiatives to drive nonhydrocarbon growth, improve fiscal sustainability, and attract foreign investments.   

Oman’s reform efforts under Vision 2040 aim to reduce the economy’s reliance on hydrocarbons and foster private sector-led growth.    

The government has been executing sizable private sector investments and advancing structural reforms to expand the role of nonhydrocarbon sectors in the economy.    

Over the medium term, nonhydrocarbon activity is expected to drive growth, supported by policy measures and a steady inflow of private capital.   

The IMF’s report from December claimed regional conflicts had limited spillover effects, meaning the GCC maintained a favorable outlook — with the easing of oil production cuts and expansion in natural gas expected to further bolster the hydrocarbon sector.  

It was also noted that inflation across the region remains stable at low levels, and external buffers are sufficient despite narrower current account balances.  


Saudi Arabia’s capital markets surge with $274bn raised in 5 years, fueled by Vision 2030 growth: S&P Global

Updated 15 min 58 sec ago
Follow

Saudi Arabia’s capital markets surge with $274bn raised in 5 years, fueled by Vision 2030 growth: S&P Global

  • Saudi issuers have raised more than $130 billion through US dollar-denominated issuances
  • Market conditions remain favorable, with falling interest rates providing supportive dynamics, S&P said

RIYADH: Saudi Arabia’s capital markets are experiencing significant growth, with issuers raising over $130 billion in the past five years as the Kingdom accelerates financing for its Vision 2030 plan.

The Capital Market Authority’s 2024-2026 strategy aims to promote investment, attract global interest, and support economic diversification, advancing the nation’s financial sector. 

According to a report from S&P Global, Saudi issuers, including the government and private sector, have raised more than $130 billion over the past five years through US dollar-denominated issuances.

“This comes on top of the $144 billion that they raised locally in Saudi riyal during the same period, with the implementation of Saudi Vision 2030 explaining part of this flurry,” the US-based credit rating agency said.

While the government makes up about 60 percent of these issuances, Vision 2030 has also opened significant opportunities in the non-oil economy and banking system.

Despite the rise in external leverage, market conditions remain favorable, with falling interest rates providing supportive dynamics, S&P said.

“We still expect leverage to remain manageable in our base-case scenario, with private-sector debt to GDP (gross domestic product) staying below the 100 percent mark in the next 12-24 months,” the agency added.

The current market environment is favorable for issuers, with declining interest rates and supportive financial conditions providing a conducive backdrop for sustained capital raising. This trend will continue as the Kingdom pushes ahead with large-scale projects and economic diversification efforts.

Residential mortgage-backed securities market on the horizon

One of the key factors to watch over the next one-to-two years is the potential establishment of a residential mortgage-backed securities market in Saudi Arabia. 

The credit rating agency said that at the end of September, “banks were sitting on more than $175 billion of mortgages that are predominantly at fixed rates and have short-term funding sources, primarily in the form of domestic deposits.”

If interest rates continue to decline, these mortgages could become more attractive for secondary market transactions. The ability to securitize and sell them would allow banks to move assets off their balance sheets, freeing up capital for further lending and investment in Vision 2030 initiatives. 

“This assumes that the legal hurdles relating to the issuance of RMBS are resolved, or at least the risks are floored at a level that would attract local and international investors’ interest,” S&P said.

The Saudi Real Estate Refinance Co., which has an A-/Positive rating, is expected to play a key role in facilitating RMBS market development. 

Direct market issuances could emerge as another avenue for mortgage-backed securities, potentially unlocking significant financial capacity for banks.


PIF launches $4bn 2-part bond

Updated 59 min 24 sec ago
Follow

PIF launches $4bn 2-part bond

RIYADH: Saudi Arabia’s Public Investment Fund has launched a $4 billion two-part bond, Arab News has been told.

The sovereign wealth fund confirmed that it had sold $2.4 billion of five-year debt instruments at 95 basis points over US Treasuries and $1.6 billion of nine-year securities at 110 basis points over the same benchmark.

The move comes just weeks after PIF closed its first Murabaha credit facility, securing $7 billion in funding, in what was a key step in the fund’s plan to raise capital over the next several years. 

PIF, widely recognised to be Saudi Arabia’s vibrant economic engine, is currently spearheading the nation’s economic diversification efforts, aligned with the goals outlined in Vision 2030. 

PIF manages $925 billion in assets, and is set to increase that to $2 trillion by 2030, a report from monitoring organization Global SWF forecast earlier in January.

Moody’s upgraded the rating of PIF in November, raising it from A1 to Aa3 with a stable outlook, reaffirming the fund’s strong financial position.

The US-based agency gives Aa3 for entities with high quality, low credit risk, and the best ability to repay short-term debts. 

According to Moody’s, the upgrade of PIF’s long-term issuer rating from A1 reflects strong credit linkage between the sovereign wealth fund and the Kingdom’s government. 

The Murabaha credit facility is supported by a syndicate of 20 international and regional financial institutions. 

In a statement at the time of its annoucement, PIF added that the closing of the Murabaha credit facility financing complements the fund’s successful sukuk issuances over the past two years, underscoring the body’s strong financial position and its best-practice approach to debt financing.

In August, PIF obtained a $15 billion revolving credit facility for general corporate purposes from a diverse global syndicate of 23 financial institutions from the US, Europe, and the Middle East as well as Asia. 

In a press statement, the wealth fund said that this credit facility is offered for an initial period of three years and is extendable for up to two additional years. 

A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period.


Qatar drafting new laws aimed at boosting foreign investment

Updated 23 January 2025
Follow

Qatar drafting new laws aimed at boosting foreign investment

  • Qatar plans new bankruptcy, PPP, and commercial registration laws
  • Qatar aims for $100 billion FDI by 2030

DOHA: Qatar plans to introduce three new laws as part of a sweeping review of legislation designed to make the Gulf Arab state more attractive to foreign investors, the new minister of commerce and economy told Reuters.
Sheikh Faisal bin Thani said in an interview that Qatar plans to introduce new legislation including a bankruptcy law, a public private partnership law and a new commercial registration law.
“We’re looking at 27 laws and regulations across 17 government ministries that affect 500-plus activities,” he said, describing the legislative review.
Sheikh Faisal said he expects the new bankruptcy and public private partnership laws to be drafted before the end of March.
Qatar, one of the world’s top exporters of liquefied natural gas, has set a cumulative target of attracting $100 billion in foreign direct investment (FDI) by 2030, according to the latest version of its national development strategy published last year.
But it has a long way to go to meet that target, and FDI inflows have significantly lagged behind neighboring Saudi Arabia and the U.A.E.
Saudi Arabia, which also has a target to attract $100 billion in FDI by 2030 as part of its national investment strategy, saw FDI inflows of $26 billion in 2023, after a change to how it calculates FDI, while the Emirates, the Gulf region’s commercial and tourism hub, attracted just over $30 billion according to the UN’s trade and development agency.
In contrast, Qatar’s FDI inflows in 2023 were negative $474 million, down from $76.1 million in 2022. Negative FDI inflows indicate that disinvestment was more than new investment.
While Qatar does offer similar incentives to foreign investors as its neighbors, such as a favorable tax environment, free zone facilities and some long term residency schemes, the U.A.E. and Saudi Arabia are considered far ahead in terms of regulatory reforms and business friendly laws.
Qatar’s new laws also come as part of the Gulf Arab state’s efforts to activate its private sector and transition away from government-funded growth.
Sheikh Faisal joined the government in November after serving at Qatar’s $510 billion sovereign wealth fund, the Qatar Investment Authority, most recently as chief investment officer for Asia and Africa.


Saudi Arabia’s non-oil exports surge 19.7%: GASTAT 

Updated 23 January 2025
Follow

Saudi Arabia’s non-oil exports surge 19.7%: GASTAT 

RIYADH: Saudi Arabia’s non-oil exports surged 19.7 percent year on year in November to reach SR26.92 billion ($7.18 billion), bolstering the Kingdom’s efforts to diversify its economy. 

According to the General Authority for Statistics, chemical products led the growth, accounting for 24 percent of total non-oil exports, followed by plastic and rubber products, which made up 21.7 percent of shipments. 

Building a robust non-oil sector is a key goal of Saudi Arabia’s Vision 2030 program, which seeks to transform the Kingdom’s economy and reduce its reliance on oil revenues, with  Minister of Economy and Planning Faisal Al-Ibrahim revealing in November that these activities now constitute 52 percent of the  gross domestic product. 

In its latest report, GASTAT said: “The ratio of non-oil exports (including re-exports) to imports increased to 36.6 percent in November 2024 from 34.8 percent in November 2023. This was due to a 19.7 percent increase in non-oil exports and a 13.9 percent increase in imports over that period.” 

The Kingdom’s total merchandise exports fell 4.7 percent year on year in November, weighed down by a 12 percent drop in oil exports. This decline reduced the share of oil exports in total shipments to 70.3 percent, down from 76.3 percent a year earlier, signaling progress in Saudi Arabia’s economic diversification. 

GASTAT reported that China remained Saudi Arabia’s largest trading partner in November, with exports to the Asian nation totaling SR13.53 billion. 

Other key destinations for exports included Japan with SR8.93 billion, the UAE with SR8.75 billion, and India with SR8.74 billion. 

Saudi Arabia’s imports rose 13.9 percent year on year in November, reaching SR73.65 billion. However, the merchandise trade surplus declined by 44.3 percent during the same period, falling to SR16.89 billion. 

China remained the dominant supplier of goods to the Kingdom, accounting for SR20.11 billion of imports, followed by the US at SR7.52 billion and the UAE at SR3.90 billion. 

King Abdulaziz Sea Port in Dammam emerged as the top entry point for imports, handling goods valued at SR18.19 billion, representing 24.7 percent of total inbound shipments.