Lucid in Saudi Arabia: From Assembly to Manufacturing

Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
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Lucid in Saudi Arabia: From Assembly to Manufacturing

Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)

Lucid Motors is entering a new phase focused on improving liquidity and operational discipline, while launching new products and expanding manufacturing in Saudi Arabia as it seeks to address financial pressures and strengthen its capacity for growth.

The shift comes as the company continues to expand its business. Second-quarter revenue rose 56 percent year on year to $405 million, while vehicle deliveries increased 19 percent to 3,953.

At the same time, Lucid deliberately reduced production to better align supply with demand, cut inventory and preserve cash. Total liquidity stood at about $3 billion at the end of the quarter.

In an exclusive interview with Asharq Al-Awsat, Lucid CEO and board member Silvio Napoli outlined four priorities for the next phase: improving cash flow and costs, with the aim of generating $1.4 billion in savings in 2026; advancing its autonomous robotaxi program with Uber and Nuro; completing the transition of its AMP-2 plant in Saudi Arabia to fully integrated manufacturing; and advancing its midsize vehicle program toward launch readiness.

Napoli noted that Lucid possesses leading technology and distinctive products but is addressing financial challenges through stronger execution, centered on three pillars: liquidity and costs; customers and quality; and corporate culture and the workforce.

His comments came on the sidelines of the fifth LEAP 2026 conference in Riyadh, held under the theme “Into New Worlds,” where Lucid is showcasing its latest electric-vehicle technologies.

He added that the company is now focused on building a disciplined operating model that can translate Lucid’s strengths into sustainable and consistent performance.

Lucid's new factory in western Saudi Arabia. (Lucid Motors)

PIF investment

Napoli described Lucid’s relationship with Saudi Arabia’s Public Investment Fund as extending beyond a traditional investor-company relationship, calling PIF an important strategic partner whose support reflects shared confidence in the company’s capabilities and long-term growth prospects.

He explained that the company and PIF share a vision of helping shape the future of mobility and supporting Saudi Vision 2030.

Lucid’s presence in Saudi Arabia gives it access to engineering talent, research capabilities and advanced computing resources, while the expansion of AMP-2 in King Abdullah Economic City represents a pivotal step, he remarked.

The company’s ambitions extend beyond producing electric vehicles to helping build an integrated ecosystem for the automotive sector, technology and advanced industries in the Kingdom, he went on to say.

PIF has been Lucid’s principal investor through key stages of its development and continues to play an important role as a strategic partner as the company moves into its next phase of growth, implements its transformation plan and expands internationally.

Localizing vehicle manufacturing

Asked about Lucid’s gradual transition in Saudi Arabia from semi-knockdown, or SKD, assembly to integrated manufacturing, including vehicle bodies, paint and component production, Napoli confirmed that the company is moving toward full vehicle manufacturing in the Kingdom.

The AMP-2 expansion marks a new chapter in Lucid’s industrial presence in Saudi Arabia, he explained. Across the 1.36 million-square-meter site, operations will include stamping and forming body panels, body construction, painting and final assembly, as well as powertrain manufacturing and battery-pack assembly.

Lucid is currently installing and commissioning the manufacturing systems required to integrate those processes and will scale production gradually as the factory, products and supplier network become ready.

The long-term objective is to establish sustainable, integrated industrial capabilities in the Kingdom that support the growth of its electric-vehicle and advanced-manufacturing ecosystem, he revealed.

A Lucid vehicle in Saudi Arabia. (SPA)

Jobs and Saudi talent

Napoli expects significant workforce growth in manufacturing, engineering, quality assurance, logistics and supply chains as AMP-2 gradually expands toward its targeted annual production capacity of 150,000 vehicles.

The company’s ambitions go beyond creating jobs and include developing specialized expertise in Saudi Arabia. Lucid is investing in Saudi talent and practical training programs directly linked to advanced vehicle manufacturing, he noted.

The company is also working closely with authorities in King Abdullah Economic City to attract suppliers tied to its manufacturing requirements. The shared ambition is to turn the city into an integrated supplier hub, with Lucid serving as one of the strategy’s main anchors and attracting leading global Tier 1 and Tier 2 suppliers.

Napoli also highlighted the success of the supplier center at the King Salman Automotive Cluster in attracting international companies specializing in automotive components, including seats, vehicle structures, stamped parts, interior systems and exterior components.

Attracting qualified suppliers to establish operations near the plant, investing in Saudi skills and increasing local content would help create a manufacturing ecosystem capable of competing globally while meeting required standards for quality and cost efficiency, he underlined.

Supply chains

Lucid’s ambitions in Saudi Arabia extend beyond vehicle manufacturing to building an integrated base for engineering, supply-chain development, scientific research and Saudi talent development.

The company is working with suppliers localizing operations in the Kingdom, King Abdullah University of Science and Technology and other research institutions in technology and innovation, as well as the Human Resources Development Fund and the National Automotive and Vehicles Academy.

Through cooperation with these entities and the Saudi government, Lucid is contributing to the training and qualification of more than 450 Saudi talents to work in the electric-vehicle sector and at AMP-2, Napoli said, adding that Lucid expects more Saudis to benefit from these programs and opportunities in the next phase.



Gold Gains with Fed Rate Decision in Spotlight

A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
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Gold Gains with Fed Rate Decision in Spotlight

A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)

Gold prices ticked up on Wednesday as oil prices eased, while market participants looked ahead to the US Federal Reserve's policy decision, with a rate hike largely priced in.

Spot gold was up 0.8% at $4,328.39 per ounce, as of 0310 GMT, after scaling a more than one-month low on Monday. US gold futures for December delivery were down ‌0.9% at $4,369.50.

"A ‌hawkish Fed could pull gold down, ‌while ⁠any soft messaging may ⁠ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East," said Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding ⁠non-yielding bullion.

Oil prices fell after an unexpected ‌build in US crude inventories, ‌while investors assessed supply risks after Saudi Arabia suspended oil loading ‌at its Yanbu port.

Traders are pricing in a ‌92.4% chance of at least a 25-basis-point US rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin ‌Warsh.

On the geopolitical front, Saudi Arabia air defenses destroyed a Houthi drone south of ⁠Makkah before ⁠it entered prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said.

Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in US political risks.

Among other metals, spot silver rose 1.5% to $64.60 per ounce, platinum edged 0.7% higher to $1,788.25, while palladium gained 1.6% to $1,309.80.


Saudi Cement Companies Balance Investment Gains, Demand Prospects

Saudi Cement Company’s factory. (Saudi Cement Company)
Saudi Cement Company’s factory. (Saudi Cement Company)
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Saudi Cement Companies Balance Investment Gains, Demand Prospects

Saudi Cement Company’s factory. (Saudi Cement Company)
Saudi Cement Company’s factory. (Saudi Cement Company)

Saudi Arabia’s listed cement companies maintained high profitability in the first half of 2026 despite wide disparities in performance and differing sources of growth. Combined net profit stood at about SAR 1.1 billion ($293.9 million), down a modest 2.4% from a year earlier, while the sector recorded profit growth in the second quarter.

The results show that cement and clinker sales were not the only drivers. Investment income, gains from the revaluation and disposal of some underused assets, and tighter control of expenses and financing costs supported several companies. Those farther from major demand centers faced greater pressure from transportation and logistics costs, financing burdens and excess production capacity.

While major producers, led by Yamama Cement Co., Saudi Cement Company and Eastern Province Cement, continued to lead sector profits, the results raise a more important question for the period ahead: To what extent do these profits reflect a sustainable improvement in operating activity, and how much have they benefited from investment and non-recurring items?

Thirteen companies posted first-half profits. Yamama Cement led with net profit of SAR 265.39 million, up 0.88% from SAR 263.08 million a year earlier. Saudi Cement followed with SAR 202.2 million, down 0.88% from SAR 204 million, while Eastern Province Cement ranked third, with profit rising 12.8% to SAR 141 million from SAR 125 million.

Second-quarter net profit for the sector reached SAR 508.7 million ($135.7 million), up 2.27% from SAR 497.4 million ($132.6 million) a year earlier. Nine companies reported profit growth, seven posted declines, while Al-Jouf Cement Company deepened its net losses.

Mohamed Hamdy Omar, CEO of G.WORLD, told Asharq Al-Awsat that the results presented a mixed picture: While the overall figures demonstrate the resilience of financial buffers and the ability of leading companies to adapt, they also reveal wide operational and structural disparities across the sector.

Omar identified four main factors supporting first-half profits, led by non-operating items. Cement and clinker sales were not the sole drivers of profitability, with gains from the fair-value revaluation of investments and capital gains from the disposal of some underused assets also supporting results.

Riyadh Cement Company plant. (Riyadh Cement Company)

He cited Yamama Cement as a prominent example, saying it benefited from the sale of equipment from the old plant’s production lines, as well as investment income.

Spending efficiency and financing-cost management also supported major companies. Saudi Cement and Eastern Province Cement reduced selling and distribution expenses and controlled financing costs, helping limit pressure on profit margins.

Companies based in Riyadh and the Eastern Region also benefited from proximity to major demand centers and projects, Omar said. The accelerated implementation of infrastructure projects and urban expansion provided operating volumes that helped them better absorb cost fluctuations.

Performance gap

Companies farther from major demand centers faced greater operational and logistical challenges. Omar pointed to an approximately 96.4% decline in Tabuk Cement Company’s profit and deeper losses at Al-Jouf Cement, attributing this to higher transportation and logistics costs and heavier financing and debt-servicing burdens among highly leveraged companies or those with lease-based financing structures.

Omar noted that the gap underscored the importance of geography and company size in determining competitiveness, particularly in a market characterized by excess production capacity and uneven regional demand.

He cautioned that relying on asset sales or investment portfolio revaluations to support profits was temporary and could not guarantee sustainable growth.

The real test would be a recovery in domestic demand and improvement in average selling prices per ton, he added.

Lower interest rates could ease debt-servicing burdens, potentially improving net margins and providing greater liquidity for rehabilitation and expansion.

Omar noted that mergers and acquisitions could become a more pressing strategic option as the performance gap between large and small producers widens, helping companies strengthen pricing power, reduce administrative and general expenses and address excess production capacity.

The ability to sell surplus production in neighboring regional markets will remain crucial in the second half, he stressed, alongside energy costs and feedstock-use efficiency.


Oil Slips on US Stock Build, Middle East Disruptions Limit Losses

 An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
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Oil Slips on US Stock Build, Middle East Disruptions Limit Losses

 An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)

Oil prices fell on Wednesday, retreating after a two-day rally following an unexpectedly large build in US crude inventories, while supply disruptions in the Middle East lingered.

Brent crude futures fell 73 cents, or 0.67%, to $108.02 a barrel at 0450 GMT, while US West Texas Intermediate futures were down $1.1, or 1.04%, at $104.73 a barrel.

Both benchmarks settled more than $3 higher and at their highest levels since May 19 on Tuesday.

US crude oil, ‌gasoline ⁠and distillate inventories ⁠all rose last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data. That compared with analysts' expectations for a draw of about 1.6 million barrels, according to a Reuters poll.

API's data showed unexpected builds in gasoline and diesel inventories have weighed on prices, but regional stock ⁠increases do not change the underlying tightness in the global ‌crude market, Haitong Futures said in a ‌note.

Despite the inventory pressure, prices remained resilient as traders focused on disruptions to physical supplies, ‌said Priyanka Sachdeva, head of market insights at Phillip Nova, in a report ‌on Wednesday.

European diesel futures rose to a record high on Tuesday, further highlighting tightness in fuel markets as Middle East disruptions constrained ‌crude and product flows.

Visible vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday, falling well short of the 10-day average of 18.

The drop in traffic through the waterway that handled a fifth of the world's oil and liquefied natural gas supply before the US-Israeli war on Iran started comes after attacks in the region intensified.