New Saudi Investment in the Electric Car Sector

Saudi Arabia's Abdul Latif Jameel Group signed an agreement with India's Greaves Electric Mobility to invest SAR 825 million ($220 million) in the company. (Asharq Al-Awsat)
Saudi Arabia's Abdul Latif Jameel Group signed an agreement with India's Greaves Electric Mobility to invest SAR 825 million ($220 million) in the company. (Asharq Al-Awsat)
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New Saudi Investment in the Electric Car Sector

Saudi Arabia's Abdul Latif Jameel Group signed an agreement with India's Greaves Electric Mobility to invest SAR 825 million ($220 million) in the company. (Asharq Al-Awsat)
Saudi Arabia's Abdul Latif Jameel Group signed an agreement with India's Greaves Electric Mobility to invest SAR 825 million ($220 million) in the company. (Asharq Al-Awsat)

Saudi Arabia's Abdul Latif Jameel Group has signed an agreement with India's Greaves Electric Mobility, the electric vehicle arm of the engineering firm Greaves Cotton, to invest SAR 825 million ($220 million) in the company.

The Saudi company will initially pour SAR 560 million ($150 million) for purchasing 35.8% stake in Greaves Electric Mobility (GEM), followed by an investment of SAR 262 million ($70 million) within 12 months.

This is the second sizable Saudi investment in the field of electric cars.

In May, Lucid Motors signed an agreement to establish its first integrated production plant for electric cars in Saudi Arabia, aiming to produce around 150,000 cars annually after completing its factory in King Abdullah Economic City in Rabigh on the Red Sea coast in western Saudi Arabia.

This will be Lucid Motors’ first factory outside the US.

The Saudi Public Investment Fund owns a majority stake in Lucid Motors, whose shares are traded on the US market.

“The Lucid Motors project will produce 300,000 electric cars before 2030,” revealed Bandar Alkhorayef, the Minister of Industry and Mineral Resources and Chairman of Saudi Industrial Development Fund (SIDF), at the signing.

He noted that Lucid Motors’ decision to open its first factory abroad in Saudi Arabia is a great indication of the Kingdom’s ability to attract quality investments with modern technology, and that it would create a strong supply chain of metals, such as aluminum and sheet metal.

“We are now discussing with investors to build factories for car batteries,” he added, revealing plans to build an automobile assembly that includes various industries, including spare parts.



US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili

The United States and Saudi Arabia will sign a preliminary agreement on energy cooperation and civilian nuclear technology, US Energy Secretary Chris Wright said on Sunday.

Wright spoke at a press conference in the Saudi capital Riyadh where he arrived from the United Arab Emirates on Saturday as part of a regional tour that will also take him to Qatar.

His visit comes amid world economic turmoil over the tariffs imposed by US President Donald Trump. But Wright said that these tariffs don’t seek to restrict trade, rather they aim for fair and reciprocal trade.

His visit also comes ahead of an expected visit by Trump to the Kingdom, the UAE and Qatar in May to consolidate relations.

The US Energy Secretary told journalists at the Saudi Energy Ministry that Riyadh and Washington were on a "pathway" to reaching an agreement to work together to better develop energy resources and energy infrastructure, in addition to mining cooperation, civilian nuclear technology and energy production.

Wright said further details over a memorandum detailing the energy cooperation between Riyadh and Washington would come later this year.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced last September that the Kingdom is working to develop peaceful uses for nuclear energy across various fields.

In his press conference on Sunday, Wright discussed the meetings he has held in Riyadh. There have “been very wide ranging dialogues for a day and a half now and they're going to continue. We've talked about energy in all aspects of energy. We've talked about mining, critical materials. We've talked about processing in industry. We've talked about climate change. We've talked about human lives and what drives their improvement and how best to achieve those ends,” he said.

On Saturday, Prince Abdulaziz met with Wright at King Abdullah Petroleum Studies and Research Center (KAPSARC) where the US official was briefed on the Center's role in the fields of energy policy research and its transitions, climate change, sustainable transportation, and consultancy services, in addition to the development of models and analytical tools that contribute to finding solutions to current challenges in the energy sector. They also discussed opportunities for cooperation in energy research, exchange of expertise, and strengthening joint research efforts.

Wright said Sunday that he believed “Saudi Arabia will be one of the leading countries in investing in the United States. I think that's a win for the Kingdom here. It's a win for the United States. And for us, most importantly, it's a win for the working class and American citizens to have better job opportunities.”

He added that the “broader objectives” of the US and Saudi Arabia “are prosperity at home and peace abroad.”

Wright also said in response to a question by Asharq Al-Awsat that tariffs are part of Trump's economic agenda.

He said Trump is trying to grow the flow of goods outside the United States into other countries while sustaining imports and engagement with countries from around the world. “So that's a way you could describe this. Fair trade, not restricted trade, just fair trade, reciprocal trade.”

He added that the United States has seen a lot of its intensive industries, particularly energy, move outside of the country and be outsourced somewhere else. “Too many Americans have seen their job opportunities shift overseas.”

“So tariffs are also a way to give a nudge and encourage investment into our country, to make products in our country, to grow economic opportunity and prosperity in America.”