Bandar Al-Khorayef, Saudi Arabia’s Minister of Industry and Mineral Resources confirmed that the Kingdom aims to produce more than 300,000 cars per year by 2030, noting that this is one of the most important files considered by the sector’s national strategy because it contributes to the development of supply chains for many products.
During the laying of the foundation stone for the Lucid Electric Vehicles Company factory in King Abdullah Economic City in Rabigh, Al-Khorayef stated that Saudi Arabia is focusing on the automobile industry to meet local demand and export globally, estimating that spending on it in the country will reach nearly 40 billion riyals in 2020, with market size of more than half a million vehicles.
He went on to say that the Saudi Industrial Expansion Fund granted funding for the building of a Lucid plant worth more than 5 billion riyals, which is following Saudi Arabia’s “Vision 2030” goals of diversifying the economy, particularly via the development of the industrial sector.
Lucid’s choice of Saudi Arabia as the headquarters for its first factories in the Middle East, according to Al-Khorayef, demonstrates the Kingdom’s competitiveness and ability to exploit some advantages, including its unique geographical location, ability to connect and access many regional and global markets, as well as good infrastructure and service quality.
According to the Saudi Ministry of Investment, the innovative facility, which Lucid Company began construction, has a manufacturing capacity of 155,000 cars per year and a total investment of SAR 12.3 billion.
The start of developing the electric car industry in Saudi Arabia reflects the country’s strong commitment to attracting quality investments that contribute to diversifying the economy, transferring technology, and developing skills among Saudi youth, as well as its global commitment to promoting the green economy and reducing carbon emissions, according to Saudi Arabia’s Minister of Investment, Eng. Khalid Al-Falih.
Starting in 2023, the Lucid Factory will create four distinct types of electric vehicles. It will be fully operational in 2028. The facility will have two distinct kinds and will export around 95 percent of its production, which would help Saudi Arabia’s balance of payments while also providing new investment prospects.
Saudi Arabia has stated its intention to buy 50,000 electric vehicles over the next ten years, with the prospect of buying 100,000 more.