Industry leaders forecast a bright future for electric vehicles in Saudi Arabia

The three-day gathering is being held in Riyadh. AN Photo
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Updated 17 September 2024
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Industry leaders forecast a bright future for electric vehicles in Saudi Arabia

  • Event expected to reshape Kingdom’s mobility landscape as it aligns with Vision 2030
  • It has drawn key stakeholders to share insights on transformation of regional EV market

RIYADH: The EV Auto Show, held at the Riyadh International Convention and Exhibition Center, has gathered industry experts to discuss the future of electric vehicles in Saudi Arabia and the broader Middle East. 

This year’s event, running from Sept. 17 to 19, is expected to reshape the Kingdom’s mobility landscape as it aligns with Saudi Vision 2030, a plan aimed at diversifying the economy and promoting sustainability.

The three-day gathering has drawn key stakeholders, including automakers, charging solution providers, and policymakers, all keen to share insights on the transformation of the regional EV market. 

Battery electric vehicles gaining traction in the Kingdom

Heiko Seitz, partner and global e-mobility leader at PwC, was one of several panelists at the event who highlighted the favorable conditions for EV adoption. 

“In Saudi Arabia, the Middle East, we have more favorable temperatures for battery electricity than we do up there in the Nordics in Europe,” said Seitz. 

He underscored that these climate advantages and technological advancements are key factors driving the region’s shift to electric mobility.

Seitz elaborated on the market dynamics, saying: “We have more or less approached cost parity, which basically means, in simple terms, it is now almost equally affordable to drive an EV with the comparable car models compared to an internal combustion car in Saudi. In the UAE, the car prices are slightly lower, so they have already passed the tipping point.”

Seitz expected prices to drop further as more models and brands enter the market, leading to greater EV adoption across the Middle East.

He predicted a dramatic shift in the composition of the global car market over the next decade, saying: “Seven years from now, the mix in the world available will be that 30 percent of all vehicles will be battery electric. So lots of change there, and that will change the cost profile in the Kingdom and the Middle East in general.”

A greener future powered by renewables

Renewable energy is also playing a critical role in the Kingdom’s EV strategy. “There is more and more renewable energy, especially solar energy, coming into the mix here in Saudi Arabia,” said Seitz. 

He expressed optimism that the country’s efforts to integrate solar power would advance the greening of its mobility sector. “This is one of the countries in the Middle East where it’s safe to say mobility will not only be electrified, it will also be green in the future,” he added.




An industry expert speaks at the event in Riyadh on Tuesday. AN Photo

Seitz also shared impressive forecasts for EV sales in Saudi Arabia, predicting that by 2030, 64 percent of all new cars sold in the Kingdom will be fully battery electric, driven by local and international brands eager to compete in the region’s rapidly growing market.

Challenges and opportunities in EV manufacturing

The panel discussion also highlighted EV production progress within Saudi Arabia. Oswaldo Dorantes, manager of automotive at the National Industrial Development Center, emphasized the growing presence of manufacturers in the Kingdom. 

“We already have some manufacturers in Saudi making multiple manufacturing schemes like CKD (completely knocked down) and SKD (semi-knocked down) commercial vehicles and commercial trucks for medium and heavy-duty purposes,” Dorantes said. 

He highlighted various government and private sector initiatives to develop local talent and support the broader EV ecosystem, underlining that programs like the National Automotive and Vehicle Academy or Nava are playing a key role in this strategy.

However, scale remains a critical challenge in attracting suppliers. “When we look at the development of the ecosystem, the first priority is going to be scale. How can we justify bringing in one supplier if we don’t have enough scale?” Dorantes asked. 

He emphasized the importance of government support in overcoming this barrier, adding: “It doesn’t matter if you can bring the most reliable technology if you’re not competitive enough. 

“This is something we look at from multiple perspectives, and that’s why the government needs to support it in the beginning.”

Advancements in battery technology

On the technical side, Julia Palle, vice president of sustainability at Formula E, spoke about the durability and efficiency of EV powertrains. 




A panel discussion on the unique advantages of EV technology. AN Photo

“The technology of the batteries and the powertrain in an electric vehicle is basically one of the most durable systems that you have,” Palle said, adding that EVs transform 85 percent of their energy into movement, compared to traditional cars, which only convert up to 25 percent.

Palle’s insights aligned with those of Klaus Wawra, managing director at Hofer Powertrain, who discussed the technology crossover between EVs and hybrids. 

“With a hybrid vehicle, you will still need an electric motor, you need an inverter, an onboard charger, and a direct current fast charging converter. So, more or less, all the technologies you have to cover inside the EV, you can then scale dedicatedly to this hybrid application,” Wawra explained.

Consumer demand on the rise

The need for electric and hybrid vehicles is steadily increasing in Saudi Arabia. Hasan Nergiz, managing director at Al-Futtaim Electric Mobility Co., shared data indicating the growing popularity of hybrids in the market.

“Right now, if I look at our last month’s order take, around 75 percent of Saudi customers are opting into hybrids,” Nergiz said. This statistic reflects the broader trend toward sustainable mobility solutions in the Kingdom.


Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Updated 16 March 2025
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Closing Bell: Saudi stock markets rise; TASI climbs over 1%

RIYADH: Saudi Arabia’s Tadawul All Share Index saw a positive close on Sunday, gaining 127.90 points, or 1.09 percent, to settle at 11,853.78.

The benchmark index recorded a trading turnover of SR4.67 billion ($1.24 billion), with 207 stocks advancing and 35 declining.

Similarly, the Kingdom’s parallel market, Nomu, also posted gains, rising by 139.42 points, or 0.45 percent, to close at 31,275.27. In this market, 50 stocks rose while 30 saw declines. The MSCI Tadawul Index followed suit, gaining 15.52 points, or 1.05 percent, to close at 1,494.79.

Arriyadh Development Co. was the top performer of the day, with its share price soaring by 9.91 percent to SR36.05.

Other notable gainers included Saudi Research and Media Group, whose shares climbed 7.97 percent to SR189.60, and Banan Real Estate Co., which saw a 6.27 percent rise, closing at SR6.95.

On the downside, Saudi Paper Manufacturing Co. experienced the largest drop, falling 3.62 percent to SR58.50. Al-Baha Investment and Development Co. also saw a decline of 2.56 percent, with its shares ending at SR0.38.

Meanwhile, Tihama Advertising and Public Relations Co. saw a 1.84 percent decrease, closing at SR16.

Saudi Reinsurance Co. announced its annual financial results for the year ending Dec. 31.

The company reported a net profit of SR440 million for 2024, a remarkable 628 percent increase compared to 2023. This surge was primarily driven by capital gains from the sale of its stake in Probitas Holding, which amounted to SR365.9 million.

Additionally, the company’s board of directors recommended a 46.6 percent increase in capital by distributing 51.48 million bonus shares to shareholders, translating to four shares for every nine held.

The increase also includes 2.5 million shares allocated for a long-term incentive plan for employees, boosting the company’s capital by an additional 2.16 percent. Despite these strong results, Saudi Reinsurance Co. saw its share price dip by 0.53 percent, closing at SR48.10.

Najran Cement Co. also released its annual financial results for the year ending Dec. 31. The company reported a net profit of SR68.4 million for 2024, reflecting a 24.05 percent increase from 2023. This growth was driven by higher sales and improved gross margins, despite rising general and administrative expenses and finance costs. Najran Cement Co.’s stock rose by 3.34 percent, closing at SR8.75.


Saudi Arabia launches $266m program to promote eco-friendly projects

Updated 16 March 2025
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Saudi Arabia launches $266m program to promote eco-friendly projects

RIYADH: Saudi Arabia has unveiled a new environmental financing initiative worth SR1 billion ($266.6 million), supported by Riyad Bank, to encourage private sector participation in sustainable and eco-friendly projects.

Abdulrahman Al-Fadhli, Saudi Arabia’s minister of environment, water, and agriculture and chairman of the Environmental Fund’s board of directors, officially introduced the program on Sunday.

The launch coincided with the unveiling of a new digital platform for the Incentives and Grants Program, designed to foster innovation and boost environmental investments.

This initiative aligns with Saudi Arabia’s Vision 2030 objectives, which focus on promoting environmental sustainability and enhancing the quality of life.

Munir bin Fahd Al-Sahli, CEO of the Environmental Fund, emphasized that the financing program is aimed at attracting private sector investments to strengthen environmental infrastructure and meteorological services. He also noted that the program will encourage businesses across various sectors to adopt sustainable practices through innovative financial solutions.

Al-Sahli described this partnership as a major step forward in funding environmental projects, highlighting that the new platform would offer incentives and support for outstanding environmental initiatives. These efforts are part of a broader national strategy to protect the environment and foster sustainable development.

The financing program represents a significant milestone in enhancing environmental investments in the Kingdom. It provides businesses and entrepreneurs with resources and incentives to develop projects that not only improve quality of life but also contribute to sustainable environmental growth.

The new electronic platform for the Incentives and Grants Program, which was launched alongside the financing initiative, is designed to streamline the process for beneficiaries and ensure efficient execution of environmental projects. The platform aims to promote eco-friendly practices, foster innovation, and encourage investment in the environmental sector, while also ensuring regulatory compliance across various industries.

Al-Sahli reiterated the fund’s commitment to offering both financial and technical support to ensure lasting positive impacts on the environment. He urged stakeholders in the environmental sector to explore the various opportunities available through the platform.

The Incentives and Grants Program is expected to drive investment in environmental projects and improve compliance levels among institutions. It will provide grants and incentives to a broad range of entities, including small and medium-sized enterprises, corporations, research centers, universities, and nonprofit organizations.

The Environmental Fund continues to develop and implement programs focused on protecting natural resources, reducing pollution, and raising environmental awareness. Through collaborations with government and private entities, it strives to balance economic growth with environmental conservation.


Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Updated 16 March 2025
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Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

RIYADH: Saudi Arabia’s inflation held firm at 2 percent year on year in February, driven largely by rising housing costs, official data showed.  

According to the General Authority for Statistics, the increase was fueled by an 8.5 percent surge in housing rents, contributing to a 7.1 percent overall rise in the housing, water, electricity, gas, and fuels category. 

The inflation rate remains consistent with Saudi Arabia’s efforts to balance economic growth with price stability as the Kingdom advances its Vision 2030 strategy, which aims to diversify the economy beyond oil.   

The government’s November 2024 budget forecast anticipated inflation to hold steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. Meanwhile, the World Bank projected a stable 2.3 percent rate this year, below the Gulf Cooperation Council average. 

“On a monthly basis, the consumer price index in February 2025 recorded relative stability compared to January 2025, rising by 0.2 percent due to the increase of housing, water, electricity, gas, and other fuels section by 0.4 percent, driven by a 0.4 percent increase in actual housing rent prices,” said GASTAT.  

Sector breakdown 

Food and beverage prices saw a modest rise of 1 percent, largely influenced by a 3.7 percent increase in meat and poultry costs. Personal goods and services climbed 3.9 percent, bolstered by a 26.7 percent jump in jewelry prices. 

Restaurant and hotel costs edged up 0.8 percent year on year, while furniture and home equipment prices dropped 2.5 percent. Clothing and footwear prices declined 1 percent, led by a 2.4 percent drop in ready-made clothing. 

Transportation costs also dipped 1.5 percent compared to February 2024. 

On a monthly basis, consumer prices remained stable overall, with food and beverages slipping 0.2 percent. Personal goods and services rose 0.7 percent, while health and tobacco prices held steady. 

Wholesale Price Index  

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in February, driven by a 3.4 percent rise in other transportable goods prices and a 3.9 percent increase in agriculture and fishery products. 

Food products, beverages, tobacco, and textiles fell by 0.1 percent year on year, while metal products, machinery, and equipment prices dipped 0.5 percent. Ores and minerals costs dropped 1.9 percent. 

Compared to January, the WPI declined 0.5 percent, led by a 1.4 percent fall in other transportable goods prices, excluding metal products, machinery, and equipment. Food products, beverages, tobacco, and textiles also saw a marginal 0.1 percent drop, while agriculture and fishery product costs rose 1.6 percent. 


Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

Updated 16 March 2025
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Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.

The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.

This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.

It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.

The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.

This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.

There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.

In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.

Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.

According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.


Oil exports propel Oman’s trade surplus to $19.4bn

Updated 16 March 2025
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Oil exports propel Oman’s trade surplus to $19.4bn

  • Saudi Arabia ranked second for Omani non-oil exports at 849 million rials

RIYADH: Oman’s trade surplus reached 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, largely driven by the oil and gas sector, according to a new report.

Preliminary data from the National Centre for Statistics and Information indicated that the increase was primarily due to higher export revenues, especially from oil and gas, despite a rise in imports.

The total value of merchandise exports in December amounted to 24.23 billion rials, reflecting a 6.8 percent increase compared to the same period in 2023, when exports were valued at 22.69 billion rials.

The growth was predominantly attributed to a rise in oil and gas exports, which reached 16.29 billion rials, an 18.4 percent increase from 13.76 billion rials in December 2023.

Meanwhile, Oman’s merchandise imports increased by 12.1 percent year on year, reaching 16.71 billion rials in December, up from 14.91 billion rials the previous year.

Despite the increase in imports, the trade balance remained positive, supported by the robust performance of the country’s energy exports.

Within Oman’s oil and gas exports, crude oil exports totaled 9.91 billion Omani rials by the end of December, marking a 0.8 percent increase from the same period in 2023.

Refined oil exports saw a significant surge of 185.5 percent, reaching 3.85 billion rials. However, liquefied natural gas exports declined by 1.9 percent to 2.53 billion rials.

Meanwhile, non-oil merchandise exports fell by 16.3 percent to 6.23 billion rials in December, down from 7.44 billion rials the previous year.

Among these, mineral products accounted for the highest value at 1.78 billion rials, but this figure represented a 36.8 percent year-on-year drop.

Exports of base metals and their products remained stable at 1.32 billion rials, increasing slightly by 0.1 percent, while plastic and rubber product exports grew by 13.3 percent to 996 million rials.

Chemical industry exports declined by 19.6 percent to 804 million rials, and exports of live animals and animal products fell 11 percent to 350 million rials. Other exports totaled 981 million rials, a decrease of 5 percent.

Re-exports from Oman increased by 14.9 percent to 1.71 billion rials by the end of December. Within this category, re-exports of food and beverage products saw a notable 30.6 percent rise to 184 million rials, while re-exports of mineral products climbed 21.3 percent to 120 million rials.

However, re-exports of transport equipment fell by 0.6 percent to 401 million rials, and electrical machinery and equipment declined by 5.4 percent to 376 million rials. Re-exports of live animals and related products also dropped by 10.1 percent to 97 million rials.

On the import side, mineral products accounted for the largest share, totaling 4.67 billion rials, an 11.3 percent increase from December 2023.

Imports of electrical machinery and equipment surged 28.9 percent to 2.93 billion rials, while base metals and their products rose 1 percent to 1.61 billion rials.

Imports of chemical products rose 3.1 percent to 1.52 billion rials, and transport equipment imports increased by 13.5 percent to 1.52 billion rials. Other imports totaled 4.47 billion rials.

The UAE remained Oman’s top trading partner for non-oil exports, with trade value rising 11 percent year-on-year to 1.05 billion rials.

The UAE also led in re-exports from Oman, which amounted to 569 million rials, and was the top source of imports into the country, totaling 3.94 billion rials.

Saudi Arabia ranked second for Omani non-oil exports at 849 million rials, followed by India at 659 million rials.

Iran was the second-largest destination for Omani re-exports at 359 million rials, with Kuwait in third at 117 million rials.

China was the second-largest exporter to Oman, with trade valued at 1.83 billion rials, followed by Kuwait at 1.69 billion rials.

In the oil sector, total crude oil exports until the end of January stood at approximately 25.82 million barrels, with an average price of $72.5 per barrel.

Oil exports accounted for 84.3 percent of total oil production, which reached 30.61 million barrels during the same period. However, crude oil exports declined by 1.5 percent compared to January 2024, when they totaled 26.2 million barrels.

Oil production also saw a 2 percent year-on-year drop, standing at 31.24 million barrels in January.

The country’s total crude oil production fell by 2.2 percent in January to 23.39 million barrels, while condensate production reached 7.22 million barrels. The daily average oil output for January stood at 987,500 barrels.

In the banking sector, total credit provided by conventional commercial banks in Oman grew by 4.8 percent by the end of December. Private sector credit rose by 3.6 percent, reaching 20.7 billion rials.

Investment by conventional banks in securities also saw a notable increase, rising 20.5 percent to approximately 6 billion rials.

This included a 7.3 percent rise in investments in government development bonds to 2 billion rials and a 30.3 percent surge in foreign securities investments to 2.3 billion rials.

On the liabilities side, total deposits at conventional commercial banks increased by 6.2 percent to 25.1 billion rials by the end of December.

Government deposits rose by 5.3 percent to 5.3 billion rials, while public sector institution deposits grew by 11 percent to 2.5 billion rials. Private sector deposits, which made up 65.3 percent of total deposits, climbed 4.9 percent to 16.4 billion rials.