Saudi Arabia’s Public Investment Fund (PIF) is making big moves to kickstart the Kingdom’s own car industry.
It launched Saudi Arabia’s first electric car brand, “CEER,” in November 2022 and is backing the National Automotive and Mobility Academy (NAFAM) while investing heavily in the car and mobility sector.
In one of its reports, PIF emphasized how this sector can create jobs, boost the economy beyond oil, and fill skill gaps regionally. The fund also aims to create opportunities for private businesses and push forward research and development.
Following Saudi Arabia’s national transformation plan, Vision 2030, the Kingdom’s investments are driving economic growth and diversification.
PIF’s investment in the US electric vehicle company, Lucid, is a prime example. Lucid opened its first electric car factory in Saudi Arabia in September 2023, coinciding with CEER’s launch.
CEER recently announced a major deal worth about $1.3 billion for a new industrial complex.
According to CEER CEO Jim DeLuca the complex will set new industry standards both locally and globally. It will feature top-notch technologies, equipment, and staff, backed by partnerships with leading industry players like Durr, Schuler, and Siemens.
Mohammed Al-Shiha, who heads the Automotive and Mobility Sector at the Middle East and North Africa division of the fund, underscores their focus on future-ready tech. For cars, this means prioritizing electric and hydrogen vehicles for a greener future.
He noted that Saudi Arabia has laid a strong foundation for its car industry and is now shifting towards building its own suppliers. Examples include partnering with global giant Pirelli for top-notch tires and teaming up with Hyundai Motor to set up an advanced car plant.
Alongside global brands, the fund is launching a joint venture with the Saudi Electricity Company to establish “Electric Vehicle Infrastructure Company.” Their aim is to provide fast charging services across the Kingdom by 2030.
