EV maker Lucid becomes first global automotive manufacturing company to join ‘Made in Saudi’ program

1 / 4
Lucid Motors joins ‘Made in Saudi’ program to boost the Saudi Arabia’s leadership in electric vehicle manufacturing. X/@BAlkhorayef
Short Url
Updated 03 April 2025
Follow

EV maker Lucid becomes first global automotive manufacturing company to join ‘Made in Saudi’ program

  • Aims to increase industrial sector’s contribution to GDP to at least 20% by 2025
  • Move seeks to attract additional investments, enhance non-oil exports, and create sustainable job opportunities

RIYADH: Electric vehicle manufacturer Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program as the country continues strengthening its industrial capabilities. 

The milestone grants Lucid the right to use the “Saudi Made” label on its products, symbolizing the nation’s focus on quality and innovation. 

The strategy aims to increase the industrial sector’s contribution to the gross domestic product to at least 20 percent by 2025, tripling the current industrial base. 

It also seeks to attract additional investments, enhance non-oil exports, and create sustainable job opportunities, aligning with Vision 2030’s economic diversification goal.

“This is a step that represents a strong push to enhance the image of the national industry and attract investments and global companies, which consolidates the Kingdom’s position as a global center for innovative manufacturing,” Minister of Industry and Mineral Resources Bandar Alkhorayef said in a post on his X account. 

In a separate statement, the minister said that Lucid Motors’ inclusion in the program underscores Saudi Arabia’s strategic transformation toward creating a fully integrated electric vehicle manufacturing ecosystem. 

The minister added that this initiative aligns with the objectives of the National Industrial Strategy, which focuses on empowering promising sectors and attracting high-value investments in advanced industries.

Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023. 

Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and represents a key milestone in its efforts to build a domestic automotive industry. 

The facility can currently assemble 5,000 Lucid vehicles annually during its first phase. Once fully operational, the complete manufacturing plant, including the assembly line, is expected to produce up to 155,000 electric cars per year. 

Saudi Arabia is aggressively promoting the adoption of electric vehicles as part of its Vision 2030 strategy, which aims to achieve net-zero carbon emissions by 2060. 

A critical target of the initiative is for 30 percent of all vehicles in Riyadh to be electric by 2030, contributing to a broader goal of reducing emissions in the capital by 50 percent. 

To support the transition, the Public Investment Fund — a major backer of Lucid Motors — has been instrumental in establishing a domestic EV manufacturing sector. 

In addition to its stake in Lucid Motors, PIF has launched Ceer, the Kingdom’s first locally branded electric vehicle manufacturer, as part of its efforts to bolster the industry. 

Infrastructure development is also a core focus, with the Kingdom planning to deploy 5,000 fast chargers across Saudi Arabia by 2030 to facilitate the adoption of EVs. 

Consumer interest in EVs is steadily growing, with over 40 percent of Saudi consumers considering purchasing an electric vehicle within the next three years, according to a 2024 report by London-based professional services network PwC. 

Faisal Sultan, vice president and managing director for the Middle East at Lucid Motors, expressed the company’s pride in joining the program, saying: “We are delighted to join the ‘Made in Saudi’ program and have the honor of using the ‘Saudi Made’ label, which represents quality and excellence.”

He added: “We are committed to embodying the values of this national identity, such as sustainability, innovation, and excellence. With the increasing focus on electric vehicles in the Kingdom, we aim to deliver an advanced and unique experience to our customers.”

The minister said that Saudi Arabia has emerged as a central hub for electric vehicle production, supported by modern infrastructure, incentivizing policies, and a highly skilled workforce. 

He also said that major players like Lucid Motors strengthen the Kingdom’s position as a global center for future-focused industries while contributing to increased local content, non-oil exports, industrial localization, and knowledge transfer. 

Launched in March 2021, Saudi Arabia’s Made in Saudi program promotes domestic products and services, encouraging local consumption and boosting non-oil exports. 

The move aligns with Saudi Arabia’s broader industrial strategy, which aims to increase the sector’s gross domestic product contribution to 20 percent by 2025 and drive investments in advanced industries. 

It also supports Vision 2030’s goal of reducing the nation’s reliance on oil by fostering high-value sectors like electric vehicle manufacturing.


Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

Updated 23 sec ago
Follow

Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

RIYADH: Saudi Arabia’s minister of industry and mineral resources has urged Kuwaiti investors to seize untapped opportunities in the Kingdom’s mining sector.

The encouragement was given during Bandar Alkhorayef’s meeting on April 30 with a group of Kuwaiti businessmen at a gathering organized by the Saudi Embassy as part of the minister’s official visit to the Gulf country. 

The trip was designed to strengthen economic ties, enhance cooperation in the industrial and mining sectors, and attract high-quality investments to the Kingdom, according to a statement.

During his meeting with the investors, the minister highlighted the crucial contribution of the industrial and mining sectors to the Kingdom’s economic diversification, aligning with Saudi Vision 2030’s aim to establish the country as a global industrial leader and a key hub for mineral production and processing.

This aligns with developments across the Saudi mining sector in order to maximize its impact on the national economy and exploit mineral resources, estimated at more than SR9.3 trillion ($2.47 trillion), Alkhorayef noted.

“He pointed out that the National Industrial Strategy focuses on developing and localizing 12 vital industrial sectors, most notably food, pharmaceuticals, automotive, and aviation, as these sectors provide promising investment opportunities for local and international investors,” the newly released ministry statement said.

“His Excellency pointed out the Kingdom’s endeavor to enable industrial transformation by adopting the latest manufacturing technologies, including applications of the Fourth Industrial Revolution, developing digital infrastructure in the industrial sector, and developing human capabilities and qualifying them to deal with advanced technologies,” it added.

During the meeting, Alkhorayef highlighted the Kingdom’s launch of the Factories of the Future program, which aims to automate industrial facilities and transform them into smart factories.

The minister also indicated that the General Geological Survey Program for Mining Exploration currently covers 60 percent of the Arabian Shield region and that the sector offers promising investment opportunities in all stages of mining.

He highlighted Saudi Arabia’s strategic advantages that position it as a prime global investment hub, such as its location connecting three continents, advanced infrastructure, and abundant natural resources, as well as varied energy options and streamlined government processes and licensing.

Toward the end of the meeting, Alkhorayef encouraged Kuwaiti companies and investors to explore the distinctive opportunities in the Kingdom’s industrial and mining sectors, emphasizing the nation’s supportive capabilities and incentives designed to facilitate and enhance the investor experience.

Saudi Arabia, Kuwait to bolster collaboration in oil, commerce, industry

Bandar Alkhorayef meeting with Minister of Oil Tariq Sulaiman Al-Roumi. X/@BAlkhorayef

During his official visit to Kuwait, Alkhorayef also held bilateral meetings with the Minister of Commerce and Industry Khalifa Abdullah Al-Ajeel and the Minister of Oil Tariq Sulaiman Al-Roumi.

During the meeting with Al-Ajeel, the Saudi minister praised the longstanding and robust ties between the Kingdom and Kuwait, emphasizing that these historical relations serve as a solid foundation for strategic economic partnerships, particularly in the industrial sector.

The discussion also emphasized the need to bolster industrial integration between the two sides in order to advance sustainable industrial development and promote economic diversification in both nations.

The meeting with Sulaiman saw the crucial role of the crude oil sector highlighted as a key driver of development in both countries. It also explored strategic opportunities to expand collaboration in the petrochemical industry and discussed ways to increase trade exchange and direct joint investments toward emerging, high-potential sectors.

In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event in January, Alkhorayef said that Saudi Arabia is taking a flexible approach to distributing its SR10 billion standardized incentive program — which provides financial support to industrial projects — to maximize its impact across industries. 

At the time, the minister said the program is designed to align with investor demand and deliver optimal returns.


GCC share of emerging-market dollar debt jumps to 35% in Q1 

Updated 28 min 56 sec ago
Follow

GCC share of emerging-market dollar debt jumps to 35% in Q1 

RIYADH: Gulf Cooperation Council countries accounted for over 35 percent of all emerging-market US dollar debt issued in the first quarter of the year— excluding China— marking a sharp increase from around 25 percent in 2024, a new report revealed. 

In its latest analysis, Fitch Ratings forecast that the share is expected to continue rising through 2025 and 2026 as regional governments and corporations increasingly turn to debt capital markets for funding diversification, project finance, and budget support amid fiscal pressures and global economic uncertainty. 

The report stated that the total value of the GCC DCM exceeded $1 trillion across all currencies by the end of the first quarter, marking a 10 percent year-on-year increase.

Issuance reached $89 billion in the first three months of the year, up 11 percent from the previous quarter but down 3 percent compared to the same period of 2024. 

Despite a slowdown in activity since early April, Fitch noted “a healthy pipeline” is developing, supported by strong regional and Islamic investor liquidity. 

“The GCC DCM continues to be fragmented among its six member countries in its maturity, depth, and credit profile, with Saudi Arabia and the UAE the most mature,” the report stated. 

“In Kuwait, Qatar, Bahrain, and Oman, the lack of a link with international central securities depositories such as Euroclear or Clearstream partly hinders foreign-investor participation in the local-currency DCMs,” it added. 

According to the global investment banking firm State Street Global Advisors, other regions saw divergent trends. Brazil led the emerging market in local bond returns with a 13.7 percent gain, driven by currency appreciation and rate hikes. 

In contrast, Turkiye posted an 8.7 percent decline, reflecting political instability and currency depreciation. These shifts underscore varying macroeconomic dynamics across emerging markets. 

In the Kingdom, foreign investors increased their participation in local government debt, accounting for 7.7 percent of the investor base at the end of the first quarter of the year, up from 4.5 percent in 2024. 

Fitch noted that pressure from declining oil prices — forecast at $65 per barrel for 2025 and 2026 due to OPEC+ cuts and trade-related volatility — could widen fiscal deficits and lead to increased borrowing. 

Among the most vulnerable are Bahrain and Saudi Arabia, while Qatar, Kuwait and Abu Dhabi benefit from substantial sovereign wealth assets. Oman is seen as relatively well-positioned fiscally. 

Interest rate expectations are also playing a role in shaping the DCM outlook. Fitch projects the US Federal Reserve to lower rates to 4.25 percent by end of 2025, with GCC central banks expected to follow suit. 

Lower rates could support further issuance, as banks and corporates across the region continue to diversify their funding strategies. 

Sukuk remains a cornerstone of the GCC’s DCM, comprising around 40 percent of the total outstanding by the first quarter of the year. 

The region holds over 40 percent of the global sukuk market, though issuance fell 51 percent year on year in the first quarter to $18.2 billion. 

Conventional bonds rose 29 percent over the same period. Fitch reported that 83.5 percent of Fitch-rated GCC US dollar sukuk are investment-grade, with 57.8 percent in the “A” category and the majority holding stable outlooks. 

Environmental, social and governance financing is also gaining traction in the region, with GCC countries’ ESG DCM surpassing $50 billion in all currencies by the end of the quarter. 

National-level regulatory reforms are also reshaping local markets. In Kuwait, the cabinet’s approval of a long-delayed financing and liquidity law is expected to unlock new borrowing capacity. 

In the UAE, the apex bank continues to advance the Dirham Monetary Framework, with the currency’s share in the domestic DCM growing to 24.9 percent from just 0.5 percent in 2020. 

Sustainable finance is also gaining momentum, with the UAE developing a Sustainable Islamic M-Bills program and Qatar unveiling a sustainable finance framework. 

Despite global uncertainty, Fitch emphasized the resilience of the region’s credit quality, noting that no Fitch-rated GCC sukuk or bonds defaulted in 2024 or the first quarter of 2025.


Chinese carmakers to capture 34% of MEA market by 2030: AlixPartners 

Updated 30 April 2025
Follow

Chinese carmakers to capture 34% of MEA market by 2030: AlixPartners 

RIYADH: Chinese automotive brands are expected to achieve a market share of 34 percent in the Middle East and Africa region by 2030, marking a rise from 10 percent in 2024, according to an analysis. 

In its latest report, global consulting firm AlixPartners stated that the MEA region will hold the highest share of vehicles produced by the Asian country outside of China, Russia, and Belarus by the end of the decade. 

The projections align with findings published in November by media intelligence firm CARMA, which revealed that car buyers in countries such as Saudi Arabia and the UAE show trust levels above 70 percent for Chinese automotive brands — more than double the confidence seen in the US. 

Alessandro Massaglia, partner and managing director at AlixPartners, said: “Chinese car manufacturers are rapidly gaining traction in the Middle East, positioning the region as a critical growth engine for their global exports.”

According to Massaglia, the technical prowess of Chinese vehicles and competitive pricing are two major factors attracting buyers in the Middle East. 

“Customers appreciate the competitive pricing and high technology content of Chinese vehicles. These brands are steadily gaining ground on established players, a trend expected to accelerate with the gradual shift toward electric vehicles,” he added. 

Countries including Saudi Arabia have already set clear targets for EV adoption, with the Kingdom aiming to have 30 percent of all vehicles in Riyadh electric by the end of this decade as part of its Vision 2030 initiative.

The report noted that the Middle East region is set to play an increasingly strategic role in the global growth ambitions of Chinese vehicle brands. 

“The region’s appetite for innovation, coupled with its investments in future mobility and sustainability, positions it as a key destination for next-generation automotive solutions,” said AlixPartners. 

It added: “The growing alignment between Chinese brands’ offerings and Middle Eastern market needs is expected to drive deeper partnerships, technology adoption, and competitive intensity across the automotive landscape in the coming years.” 

Middle East growth 

According to AlixPartners, the Middle East and Russia emerged as the most important markets for Chinese exports in 2024, surpassing North America and Europe in volume for the first time. 

“This shift comes as China continues to flex its muscles in the global automotive-export market, even amid the ongoing global tariff storm gripping the industry,” said AlixPartners. 

The global automotive industry has faced major upheaval since early April, after US President Donald Trump imposed a 145 percent tariff on Chinese imports — the highest so far in the trade dispute between the two countries.

According to the report, China’s exports globally rose by 23 percent year on year to reach 6.4 million passenger vehicles in 2024. 

The analysis noted that this growth is expected to moderate to 40 percent in 2025 as tariffs ripple through the market. 

Russia and the Middle East together accounted for 35 percent of China-origin vehicle exports in 2024, surpassing the combined shipments to Europe and North America for the first time. 

“China’s car sales to Russia and Belarus have more than doubled over the past five years, insulating it in part from the volatility of tariffs,” said Andrew Bergbaum, global leader of the automotive and industrial practice at AlixPartners. 

The report also forecasted that Chinese brands will account for 30 percent of the global automotive market by 2030, up from 21 percent in 2024, primarily driven by strong gains in emerging markets. 

Impact of tariffs 

President Donald Trump holds a chart as he announces a plan for tariffs on imported goods during an event Wednesday, April 2, 2025. Getty

According to AlixPartners, tariffs issued by the US and other countries will have a muted impact on the Chinese automotive industry. 

“Although recent tariffs from the US and other countries will increase the cost of China’s vehicle and auto components exports by about 24 percent, or $46 billion, this represents only about 3.8 percent of China’s total auto-industry production value,” said the consulting firm. 

Growth in the Chinese automotive industry will also be supported by domestic demand, which is expected to grow by 4 percent in 2025, reaching 26.8 million units. 

The report highlighted that domestic growth in China is primarily driven by the rapid adoption of EVs, increasingly featuring intelligent-vehicle technologies such as autonomous-driving systems. 

AlixPartners projected that EV sales in China will account for 54 percent of the domestic market in 2025. 

Highlighting innovation in Chinese vehicles, the report noted that Advanced Driving Assistance Systems, or ADAS, Level 2 and above were included in nearly 60 percent of passenger vehicle sales in China in 2024, compared to less than 40 percent in the US. 

ADAS refers to electronic technologies used in vehicles to enhance safety and driving comfort. 

As Chinese automakers strengthen their presence in the Middle East, driven by competitive pricing, technology adoption, and evolving market demand, continued growth is expected in the years ahead.


Saudi POS spending hits $3bn, fueled by jewelry sales

Updated 30 April 2025
Follow

Saudi POS spending hits $3bn, fueled by jewelry sales

RIYADH: Jewelry spending in Saudi Arabia hit SR320.7 million ($85.4 million) between April 20 and 26, marking a weekly rise of 18.2 percent, according to the latest official figures.

The point-of-sale transactions bulletin issued by the Saudi Central Bank showed that this sector was one of the few that registered positive growth over the seven-day period.

The overall point-of-sale value decreased by 0.8 percent to SR11.3 billion during the week, with the number of transactions dropping 1.1 percent to 199.7 million.

Spending on electronics and electronic devices saw the second-largest increase, at 3.5 percent, to reach SR152.7 million. The number of transactions in this area increased 0.8 percent to 1 million.

Food and beverages spending followed with a 0.6 percent uptick to SR1.65 billion, accounting for the largest share of the week’s POS value.

Expenditure on education saw the biggest decrease, dipping by 17.5 percent to SR137.2 million, followed by hotels with a 13.7 percent drop to SR254.6 million.

Spending in restaurants and cafes saw a 2.1 percent fall to SR1.64 billion, although it still claimed the second-largest share of the POS value. Outlays on miscellaneous goods and services dropped 2.7 percent to SR1.34 billion.

Spending in the leading three categories accounted for approximately 40.8 percent, or SR4.6 billion, of the week’s total value.

Recreation and culture spending dropped by 7.4 percent to SR210.4 million, and expenditure on furniture decreased by 1.3 percent to SR224.9 million.

The clothing and footwear sector saw the smallest decline at 0.1 percent to SR607 million, with the number of transactions dropping by 1.9 percent to 4.6 million.

Geographically, Riyadh dominated POS transactions, representing around 36.1 percent of the total, with expenses in the capital reaching SR4.1 billion — a 0.1 percent increase from the previous week. 

Jeddah followed with a 0.5 percent decrease to SR1.7 billion; Dammam came in third at SR602.5 million, up 1.7 percent. 

Madinah experienced the most significant decrease in spending, dropping by 7.7 percent to SR421.1 million. Makkah followed with a 5.7 percent reduction to SR420.7 million.

Among Saudi cities, only Riyadh, Dammam, and Alkhobar experienced growth in transaction numbers. Riyadh reached 65.8 million transactions, reflecting a marginal uptick, while Dammam climbed to 8.5 million and Alkhobar to 4.5 million, marking modest gains compared to other regions.


Oil Updates — crude drops, poised for biggest monthly fall in 3 years

Updated 30 April 2025
Follow

Oil Updates — crude drops, poised for biggest monthly fall in 3 years

SINGAPORE: Oil prices extended declines on Wednesday and were set for their largest monthly drop in more than three years as the global trade war eroded the outlook for fuel demand, while fears of mounting supply also weighed.

Brent crude futures fell by 83 cents, or 1.29 percent, to $63.42 per barrel by 10:30 a.m. Saudi time. US West Texas Intermediate crude futures dropped 92 cents, or 1.52 percent, to $59.50 a barrel.

Brent and WTI have lost 15 percent and 17 percent respectively so far this month, the biggest percentage drop since November 2021.

Both benchmarks slumped after US President Donald Trump’s April 2 announcement of tariffs on all US imports. They then sank further to four-year lows as China responded with its own levies against US imports, stoking a trade war between the top two oil-consuming nations.

Trump’s tariffs on imports into the US have made it probable the global economy will slip into recession this year, according to a Reuters poll.

China’s factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday.

Worries about demand amid the trade war have weighed on investor sentiment, said ANZ bank senior commodity strategist Daniel Hynes.

“There are also concerns that recent strength in US economic data was only temporary, due to stockpiling ahead of the tariffs that now appears to be abating,” he added.

US consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs, data showed on Tuesday.

Recent signs of a de-escalation in the trade wars, including a pair of orders Trump signed on Tuesday to soften the blow of his auto tariffs, eased some jitters among global investors.

That said, analysts believe the oil market will stay under pressure as the Trump administration continues to prioritize lower oil prices to manage inflation.

Oil prices were also undermined by fears of mounting supply from the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+.

Several OPEC+ members will suggest a ramp-up of output hikes for a second straight month in June, sources told Reuters last week. The group will meet on May 5 to discuss output plans.

On the supply front, US crude oil inventories rose by 3.8 million barrels last week, market sources said on Tuesday citing American Petroleum Institute data.

US government data on stockpiles is due at 5:30 p.m. Saudi time on Wednesday. Analysts polled by Reuters expect, on average, an 400,000 barrel increase in US crude oil stocks for last week.