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Electric Vehicles … A Saudi Step Towards Establishing Sustainable Transportation

Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
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Electric Vehicles … A Saudi Step Towards Establishing Sustainable Transportation

Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat

The announcement made by Lucid Group, an American electric vehicle manufacturer, on signing several agreements with Saudi government agencies, paving way for laying the groundwork for a full production factory in Saudi Arabia, is an important step that shows the competitiveness of the Kingdom in becoming a perfect investment destination and a top industrial force.

Lucid expects to manufacture up to 150,000 vehicles per year at the King Abdullah Economic City (KAEC) facility.

The move between the US firm and Saudi Arabia comes as a continuation of the relationship between the Public Investment Fund and Lucid since 2018, which has contributed to supporting the Kingdom’s efforts in manufacturing electric vehicles as part of the Saudi Vision 2030.

This would help the Saudi leadership in localizing the manufacturing of electric vehicles, creating job opportunities and diversifying economic resources by allowing the transportation sector to adopt sustainable energy.

CEO and CTO of Lucid Group Peter Rawlinson said the company’s partnership with the Saudi government agencies gives the firm unique insight into the demand for luxury cars and SUVs in Saudi Arabia and beyond. “We are thrilled to introduce the world’s most advanced electric vehicles to more global markets.”

Lucid anticipates that Saudi Arabia’s efforts to foster an automotive ecosystem through its Saudi Vision 2030 should yield cost savings for Lucid as well as environmental benefits, with reduced transportation of product to the customer.

Lucid expects to employ several thousand people at its KAEC facility once full production capacity is established, the majority of which are expected to be Saudi Arabian citizens.

Lucid has established an internship program with the PIF to provide educational opportunities and training for Saudi Arabian citizens at Lucid’s facilities in California and Arizona to develop talent for operations in Saudi Arabia. The company, in addition, will build and run dedicated training centers in KAEC to support skills development for the workforce.

The commitment of PIF’s strategy towards diversifying the economy and increasing revenues has contributed effectively to backing the efforts to transform the Kingdom to an industrial force, in addition to adopting environment friendly techniques that would limit carbon emissions and fight climate change.

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Saudi Competition Authority Approves 116 Applications for Acquisition

Saudi Competition Authority Approves 116 Applications for Acquisition
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Saudi Competition Authority Approves 116 Applications for Acquisition

Saudi Competition Authority Approves 116 Applications for Acquisition

The Saudi General Authority for Competition (GAC) has initiated criminal proceedings against 24 establishments, processed 299 complaints, and approved investigations into 16 of them after detailed evaluation. The authority dismissed 252 complaints, while 31 cases remain under review.

Since the beginning of 2024, 16 establishments have submitted settlement requests to the authority. Additionally, GAC approved 147 economic concentration (mergers and acquisitions) requests during the first three quarters of the year, classified 74 as non-reportable, and is still reviewing 12 applications.

In an interview with Asharq Al-Awsat, Saad Al-Masoud, the GAC spokesperson, highlighted that settlement is a vital mechanism for ensuring sustainability by correcting violations of the Competition Law and its executive regulations. Such requests are accepted from establishments before criminal charges are initiated.

The Role of GAC

Al-Masoud explained that GAC oversees the implementation of the Competition Law, aimed at promoting fair competition, combating monopolistic practices, ensuring a wide array of high-quality, competitively priced goods and services, and encouraging innovation. The authority’s three main functions include safeguarding fair competition, enforcing regulations and monitoring markets.

The authority also evaluates economic concentration reports (mergers, acquisitions, and joint ventures), issuing necessary decisions. Since January, it approved 147 economic concentration applications, 74 deemed non-reportable, while 12 remain under review.

Economic Concentration Insights

According to Al-Masoud, acquisition requests represented the majority of approved applications, totaling 116 (79%). Joint ventures accounted for 27 applications (18%), with three additional dealership registration requests in the automotive sector (2%), and one merger application (1%).

Exemptions

The authority offers programs, including exemptions under specific conditions outlined in the Competition Law. Companies can request exemptions from Articles 5, 6, and 7 of the law if their actions improve market performance, enhance quality, or provide consumer benefits outweighing restrictions on competition. However, the exemption must not allow the exclusion of competitors from the market for any product, Al-Masoud remarked.

Monitoring and Investigations

The authority identifies potential violations through complaints from individuals, referrals from government entities, or proactive market studies. It investigates and reports findings to its board, which decides on appropriate actions. In 2023, GAC received 141 complaints, dismissing 98 due to reasons such as lack of jurisdiction, insufficient evidence, or no legal violation.

Settlements and Reconciliation Program

Settlement is a corrective mechanism offered to violating establishments before criminal proceedings. The GAC spokesperson said that in 2023, 36 settlement requests were submitted, while 16 were filed in 2024. GAC’s board approved their study, avoiding criminal prosecution for these entities.

The Reconciliation Program, another key tool, allows establishments to disclose anti-competitive agreements and receive immunity from penalties. Al-Masoud revealed that three establishments were granted immunity in 2023 and 2024.

Spreading Competition Awareness

The authority actively promotes fair competition by raising awareness and enhancing specialized knowledge. In 2024 alone, GAC organized 9 workshops with chambers of commerce across cities, 7 university engagements for educational outreach, 25 workshops with national committees, meetings with over 113 entrepreneurs and businesspeople.

Additionally, GAC participated in major exhibitions and conferences, speaking at four of them, to engage its target audience more effectively.

Enhancing Competition

GAC conducts sectoral studies to evaluate market structures and identify anti-competitive practices. These studies benchmark Saudi markets against international standards and best practices, using economic and legal analyses to address competition-related issues.

Al-Masoud said that in recent years, GAC has completed market studies to assess competition levels in Saudi Arabia, deriving lessons and recommendations aimed at fostering effective competition. These recommendations focus on implementing improvements to reduce the likelihood of anti-competitive behavior.