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PIF Establishes ‘Tasaru Mobility Investments’ in Saudi Arabia

Logo of Tasaru Mobility Investments (PIF)
Logo of Tasaru Mobility Investments (PIF)
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PIF Establishes ‘Tasaru Mobility Investments’ in Saudi Arabia

Logo of Tasaru Mobility Investments (PIF)
Logo of Tasaru Mobility Investments (PIF)

Saudi Public Investment Fund (PIF) has launched the National Automotive and Mobility Investment Company (Tasaru Mobility Investments), an investment company focused on developing local supply chain capabilities for the automotive and mobility industry.

Tasaru Mobility Investments will lead strategic investments and partnerships with local and international private sector companies in Saudi Arabia.

It aims to support the sector's growth and achieve long-term returns by localizing manufacturing expertise and advanced technologies that will empower the electric car and autonomous mobility ecosystem in the Kingdom.

The new company will support the Kingdom's efforts to become a global leader in this vital sector by boosting local capabilities.

The establishment of Tasaru Mobility Investments is in line with the Fund's strategy to stimulate the capabilities of the automotive sector in the Kingdom, thus enhancing the Kingdom's global competitiveness and ultimately positioning it as a global leader in the industry.

The Fund's portfolio includes many specialized investments in the future mobility sector, including investment in Ceer company, the first Saudi national brand for manufacturing electric cars, in partnership with Foxconn.

On September 27, US-based Lucid Motors opened its first global factory to produce electric cars in King Abdullah Economic City (KAEC), with plans to reach its capacity of 155,000 vehicles annually.

Michael Mueller was appointed CEO of Tasaru Mobility Investment. He brings over 25 years of experience in the automotive industry, having previously held many senior management positions in several major companies, such as the Porsche AG and the Volkswagen Group in the Kingdom and Europe.

Tasaru Mobility Investment will launch its first investment through a joint project with Zamil Group Real Estate Company, Abdullah Ibrahim al-Khorayef Sons, and Dar al-Himma Projects Limited.

The project aims to develop a logistics center in King Abdullah Economic City (KAEC), serving the aftermarket parts industry.

Tasaru Mobility Investments will be a majority shareholder in the new venture, leveraging special economic zone advantages and playing a pivotal role in attracting global suppliers and enhancing trade.

The investment complements KAEC's ambition to become an automotive manufacturing and logistics hub.

Co-head of MENA Direct Investments at PIF and Chairman of Tasaru Mobility Investments Omar al-Madhi announced that Tasaru Mobility Investments aims to enhance the local supply chain and manufacturing capabilities.

Omar noted it would strengthen the end-to-end ecosystem for Saudi Arabia's electric vehicle and autonomous mobility industries.

"The company's establishment demonstrates PIF's commitments to diversify the economy, improve sustainability, and localize technology and sector-specific knowledge."

Tasaru will support research and development, increase the adoption of advanced technologies, and pursue sustainable opportunities in the sector.

By accelerating the transition to electric vehicles and future mobility solutions, the company will make an essential contribution towards Saudi Arabia's environmental objectives, including its net zero 2060 target and PIF's net zero 2050 target.

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Dollar Recovers as Trump Proposes Canada, Mexico Tariffs

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Recovers as Trump Proposes Canada, Mexico Tariffs

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The US dollar rose on Tuesday, recovering from its biggest daily percentage drop in 14 months after President Donald Trump suggested the US could impose tariffs on Canada and Mexico by Feb. 1, countering expectations he might take a gradual approach.

Trump told reporters he was thinking about implementing tariffs of around 25% on imports from Canada and Mexico at the start of February over illegal immigrants and fentanyl crossing into the country. He also raised the possibility of a universal tariff but said the US was "not ready" for that yet.

The dollar fell sharply on Monday after Trump's first day in office passed with no specific plans on tariffs and officials said any new taxes would be imposed in a measured way, a major relief for trade-exposed currencies, Reuters reported.

"What you're seeing here, too, is just how crowded long dollar positioning is, so all you need is some ambiguity on the tariff front, and you get these kind of moves," said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto.

"The bigger outside moves are going to come now if we see some deals happening, some stuff being negotiated and some of this fear getting priced out. The dollar positioning is long enough that you're going to see some smart people trying to bet on a turn."

The dollar index, which measures the dollar against a basket of currencies, rose 0.32% to 108.33 after dropping 1.24% on Monday. It was up as much as 0.68% earlier in the session.

The euro was down 0.22% at $1.0391. The EU is also seen as a likely target for Trump's tariff policies. Sterling weakened 0.26% to $1.2291.

Talking to reporters on Monday, Trump said he would remedy the trade imbalance either through tariffs or by Europe buying more US oil and gas.

A subsequent trade memo directed agencies to investigate and remedy persistent trade deficits. Analysts at Jefferies said the memo should be seen as a "blueprint for what to expect next on tariffs," and April 1 will be an important date as the agency reports are due by that date.

The Canadian dollar weakened 0.8% versus the greenback to C$1.44 per dollar while the Mexican peso was down 0.86% versus the dollar at 20.698.

The inauguration speech focused on emergencies in immigration and energy and a more expansionist foreign policy, including a pledge to take back the Panama Canal.

In his first term in office, Trump had a history of announcing imminent plans for policy proposals, including on healthcare and infrastructure, only for nothing to take shape.

Against the Japanese yen, the dollar weakened 0.11% to 155.42.

The yen has strengthened against the dollar in three of the last four sessions, supported by growing expectations the Bank of Japan will raise interest rates on Friday.

Japan's top currency diplomat Atsushi Mimura said on Tuesday at a Reuters NEXT Newsmaker event that a weak yen would increase inflation by boosting import costs. Mimura said the government and the central bank were communicating closely every day through various channels.

Markets are pricing an 86.2% chance of a quarter-point increase.

The dollar strengthened 0.23% against the offshore Chinese yuan to 7.278. Trump has threatened China with tariffs of up to 60% but did not detail any plans on Monday.

Beijing later set a stronger fix for the yuan, suggesting it was still inclined to take steps to prop up the currency.