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Industry Minister: Saudi Arabia Aims to Become Global Player in EV Industry

SPA
SPA
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Industry Minister: Saudi Arabia Aims to Become Global Player in EV Industry

SPA
SPA

Saudi Arabia aims to become a global player in manufacturing electric vehicles (EVs) and related products, including electric batteries, said Minister of Industry and Mineral Resources Bandar Al-Khorayef.

The minister's remarks came during the inauguration of Lucid Motor's first EV manufacturing plant in Saudi Arabia, located in King Abdullah Economic City (KAEC) in Rabigh governorate.

The inauguration of Lucid Motor’s plant confirms the sound implementation of the National Industrial Strategy (NIS) and its seriousness in establishing a flexible, competitive, and sustainable industrial economy led by the private sector, SPA quoted Al-Khorayef saying.

The EV industry is one of 12 strategic industrial sectors covered by the NIS to boost the growth of industry across the Kingdom, the minister added.

"The mission today is not just about building another vehicle manufacturing facility, but rather betting on the future through technology and innovation and striving for the Kingdom to become a global player in the industry of EV and related products."

He also stressed that the inauguration of Lucid Motor's EV manufacturing plant "confirms the Kingdom’s commitment to the investment in clean energy and the green economy.

The Saudi Minister said that the Kingdom will witness a vibrant ecosystem for investment in various sectors.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.