The Kingdom of Saudi Arabia seeks to achieve several goals by entering the electric car industry, including diversifying the economy as well as compatibility with the global plan to confront climate change, especially since the announcement of the launch of the first company coincides with the holding of the UN Climate Summit COP27 in Sharm El Sheikh, Egypt, according to Sky News Arabia.
On Thursday, Saudi Arabia launched its first electric car brand, “Ceer”, as part of a broader initiative to diversify the oil state’s economy.
‘Ceer’ will contribute to achieving the Kingdom’s goals of reducing carbon emissions and preserving the environment to promote sustainable development, according to “SPA”.
“Ceer” is a joint venture between the Saudi Public Investment Fund and Foxconn, which will develop an electric system for cars.
“Ceer” will design, manufacture and sell electric cars equipped with advanced technology systems, such as self-driving, in the Kingdom and the Middle East, including sedans and SUVs.
Associate Professor of Economics at the College of Economics and Administration at Qassim University, Saudi Arabia, Dr. Dirar Al-Mahi Al-Obaid, said that economic diversification plays an influential role in economic diversification, as it is a mechanism to reduce dependence on the oil sector in countries that depend on one source in its national economy.
He added that economic diversification also protects the national economy from becoming hostage to fluctuations in oil prices on global markets.
“The Kingdom of Saudi Arabia aspires to advance Saudi economic transformation with effective, diversified, globally influential investment and industrial activities, through several vital sectors, including the automotive sector, including electric cars, through cooperation with several international companies”. He added
He stressed that the follower of this sector finds that the global electric car market achieved growth during 2021 at a rate of 16.5 percent on an annual basis to reach $287 billion, which constitutes 10 percent of the total car market size, and the market is expected to reach $1.3 trillion within five years and 26 % of new car sales will be electric by 2030.
Saudi Arabia’s electric car industry fits in with the Public Investment Fund’s strategy of launching and enabling promising industries to diversify the Saudi economy in line with Vision 2030. It also aligns with the Kingdom’s goal of reducing carbon emissions.
Regarding the future of this industry in Saudi Arabia, Al-Mahi said that it is expected that the “Ceer” company’s initiative will attract foreign direct investments worth 562 million riyals ($150 million) to support the national economy.
It is worth noting that Saudi Crown Prince Mohammed bin Salman said that “the launch of the Ceer company does not only aim to build a car brand in the Kingdom, but also supports the empowerment of multiple strategic sectors that support the development of the national industrial system, and contribute to attracting local and international investments.