RIYADH: Saudi Arabia is preparing for a substantial rise in electric vehicle sales as battery prices fall and infrastructure improves, according to an industry leader. 

In an interview with Arab News at the EV Auto Show in Riyadh, Kalyana Sivagnanam, CEO of Petromin Group—a Saudi-based provider of automotive, lubricant, and EV charging solutions—indicated that EV sales could soon approach parity with internal combustion engine vehicles within the next 12 to 18 months. 

“By 2026/2027, you’re going to see a massive surge in the sales of electric vehicles,” Sivagnanam stated, linking this growth to rapidly changing market conditions and declining battery costs. 

In certain markets like China, the price of EVs is already nearly equivalent to that of traditional vehicles, a trend expected to gain momentum in Saudi Arabia, he added. 

Sivagnanam pointed out that Saudi Arabia’s Vision 2030 has played a crucial role in nurturing the EV sector, attracting major global players such as Lucid Motors, which has commenced local manufacturing, as well as new entrants like Ceer and Hyundai. 

“The EV industry definitely in Saudi Arabia is looking very, very promising,” he remarked, noting that some forecasts predict EVs could make up 35 to 40 percent of the market by 2030. 

He also discussed the “chicken and egg” challenge of EV adoption, where limited charging infrastructure deters consumers from buying electric vehicles. 

The top executive stressed the significance of initiatives like the Public Investment Fund’s EVIQ program, designed to enhance the country’s EV charging infrastructure. “In the months and years to come, we can see how this will pave the way for more adoption of electric vehicles.” 

Electromin, a subsidiary of Petromin Corp., is closely monitoring the pace of EV sales to inform its expansion of charging stations. “Our ability to install chargers will depend on how fast the vehicles sell,” Sivagnanam explained. 

The CEO highlighted Electromin’s comprehensive services for fleet customers, providing decarbonization strategies as well as EV charger installation and maintenance. 

“For example, if you are a fleet company, you don’t want to go to somebody for chargers, somebody for maintenance, and someone else for your vehicles,” he said, emphasizing the need to streamline the transition to electric vehicles. 

Electromin has already made notable progress, establishing the first national AC charging network in Saudi Arabia, with chargers accessible in 52 cities. “Today, any customer in the Kingdom, doesn’t matter where he drives, he will find an AC charger,” Sivagnanam remarked. 

Although these are not fast chargers, they ensure that drivers can access charging facilities wherever they are, he added. 

The company has also provided Saudi Arabia’s first electric van to Pepsi, the inaugural electric bus to Red Sea, and a passenger bus to Riyadh Air. 

With growing government support and robust corporate initiatives, Saudi Arabia’s EV market is set for considerable expansion in the coming years. 

“What is very exciting about this journey is the way this country is focusing on sustainability and EV adoption,” the executive concluded.

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 159.53 points, or 1.34 percent, to close at 12,080.47.

The total trading turnover of the benchmark index was SR9.47 billion ($2.52 billion), as 152 of the stocks advanced and 73 retreated. 

The Kingdom’s parallel market Nomu slipped 25,337.96 points, or 1.01 percent, to close at 25,337.96. 

This came as 30 of the listed stocks advanced, while 41 retreated. 

The MSCI Tadawul Index gained 21.02 points, or 1.41 percent, to close at 1,507.65.  

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 7.95 percent to SR95.

Other top performers were Red Sea International Co. as well as Saudi Automotive Services Co.

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 5.88 percent to SR0.16. 

Other fallers were Saudi Enaya Cooperative Insurance Co. and Saudi Industrial Development Co.

On the announcements front, the United Cooperative Assurance Co. announced that it had received a confirmation statement that the firm’s activities are consistent with the specifications of Shariah, as stipulated by the relevant supervisory committee. 

Those include separation of accounts and investments for both shareholder and policyholder pools, and insurance policies.

Retal Urban Development Co. announced the selling of its 33.33 percent share of land in Al-Khobar City for SR21 million to Remal Park Fund, an affiliate company, to issue new units in the fund in addition to the existing units owned by the company.

A bourse filing revealed that the purpose of the transaction is to increase the leasable area of the project by merging the entire land of this transaction to the rest of the project’s holdings, which will reflect positively on both the company’s and the fund’s investment.

The transaction is expected to have a positive impact on Retal’s results for 2024 until 2028. This comes as the increase in the company’s investment returns will be a result from both maximizing the fund’s returns and the increase in the development management fees for the firm.