Saudi Arabia is making big moves in the electric vehicle (EV) world. The Public Investment Fund (PIF) and the Saudi Electricity Company (SEC) have teamed up to create a new company focused on building EV infrastructure. Their plan is to install 5,000 fast chargers across Saudi Arabia by 2030.
The new company aims to be present in over 1,000 locations in the country, following regulations and standards. The PIF will own 75% of the company, while the SEC will have the remaining 25%. This collaboration is part of an effort to boost the local automotive industry by working with EV companies.
The goal is to encourage private sector involvement, support local research and development, and advance the manufacturing of high-tech materials. The company aims to lead the transition to EVs, contributing to economic growth and diversification aligned with Saudi Arabia’s Vision 2030.
Globally, the EV industry is on the rise as people shift towards sustainable transportation. The market is expected to grow significantly, reaching about $1.6 trillion by 2030. Saudi Arabia, as the largest economy in the Arab world, is keen on developing its domestic EV market to support its economic diversification away from oil.
In November of the previous year, PIF launched the kingdom’s first EV brand, Ceer, with plans to attract foreign investment and create jobs. The brand is set to release vehicles by 2025 and is projected to contribute $8 billion to Saudi Arabia’s economy by 2034.
Luxury EV maker Lucid Group, backed by PIF, also recently opened its first international manufacturing plant in Saudi Arabia. The plant is expected to produce 155,000 electric vehicles annually.
The creation of the new EV infrastructure company aligns with PIF’s strategy to enhance Saudi Arabia’s automotive capabilities and position the country as a global leader. PIF, at the core of Saudi Arabia’s diversification plan, has established 89 companies since 2017 and focuses on 13 strategic sectors, aiming to inject $40 billion to $50 billion annually to create jobs and expand the non-oil economic foundation.