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Saudi Arabia to Manufacture, Export more than 150,000 Electric Cars by 2026

The Saudi Minister of Energy speaking at the press conference on Wednesday (Asharq Al-Awsat)
The Saudi Minister of Energy speaking at the press conference on Wednesday (Asharq Al-Awsat)
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Saudi Arabia to Manufacture, Export more than 150,000 Electric Cars by 2026

The Saudi Minister of Energy speaking at the press conference on Wednesday (Asharq Al-Awsat)
The Saudi Minister of Energy speaking at the press conference on Wednesday (Asharq Al-Awsat)

Saudi ministers said that they were working together to advance the industrial sector and achieve the goals of the National Industrial Strategy, which was launched by Crown Prince Mohammad bin Salman on Tuesday.

They added that talks were underway with international companies to establish a center for car manufacturing in the country in order to meet Saudi plans to manufacture and export more than 150,000 electric vehicles by 2026.

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz revealed a new program that allows factories to benefit from current gas prices for a period of three years.

He added that investments in the sector would contribute to the establishment of factories to localize the industry, explaining that his country produces 38 million tons of petrochemical materials, while only six million is currently used for manufacturing.

In a press conference on Wednesday to talk about the new industrial strategy, Prince Abdulaziz pointed to an increase in the demand for petrochemicals, stressing that Saudi Arabia had an ambitious program to find alternatives to oil to produce final consumer materials, in case the demand decreased in the future.

For his part, Bandar Al-Khorayef, Minister of Industry and Mineral Resources, said that the strategy had many objectives and focused on advanced quality industries, noting that it was based on detailed studies with the participation of around 300 officials in the private sector.

Al-Khorayef stressed the importance of the strategy in drawing a road map for the future of the industry, and doubling its contribution to the domestic product three times to reach 900 billion riyals ($240 billion).

In turn, Minister of Investment Eng. Khalid Al-Falih stated that Saudi Arabia would become one of the largest countries in the automotive industry in the coming years, referring to talks with two vehicle manufacturing companies to establish factories in the Kingdom.

The main goal is for Saudi Arabia to be among the 15 largest, most advanced, resilient and sustainable economies, he said.

Minister of Communications and Information Technology Eng. Abdullah al-Sawaha stated that the Crown Prince opened the doors to the automotive, aircraft and technology industries in Saudi Arabia, adding that the country would manufacture and export more than 150,000 electric vehicles by 2026.

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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)

British finance minister Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Saturday that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

Under pressure from a sharp rise in British interest rates, Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen for nearly six years.

"The fiscal rules that I set out in my budget in October are non-negotiable, and growth is the number one mission of this government to make our country better off," Reeves told reporters at a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond selloff, prompted comparisons with the 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.

On trade, asked whether Britain would follow Washington and Brussels in imposing tariffs on Chinese electric vehicles, Reeves, who will be in Shanghai on Sunday, said: "We keep issues under review but we make decisions in our national interest."

British car manufacturers, "like Jaguar Land Rover, export substantially to Chinese markets, and we want to help them to grow."

After her bicycle shop visit, Reeves met Vice President Han Zheng, telling him it was "important to have open and frank dialogue in areas where we agree, but also in areas where we have different views."

'COMMON GROUND'

Her delegation, which includes Bank of England Governor Andrew Bailey, Standard Chartered Chairman Jose Vinals, and HSBC Chairman Mark Tucker, then met Chinese counterparts led by Vice Premier He Lifeng.

He urged British financial firms to expand renminbi services and promote deeper yuan internationalization, while inviting them to participate in green finance and the pension industry in China.

Reeves said she looked forward to China issuing its first overseas sovereign green bond in London this year.

Her visit follows a dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping, the first between the two countries' leaders since 2018.

Reeves told He that Russia's invasion of Ukraine, rising geopolitical tensions and climate change meant that they faced a much more challenging environment than when their predecessors last met.

"It is important to prevent economic leaps weakening our national security and economic resilience," she said, adding both she and He wanted to "find common ground" in this regard.

He said Beijing will work with London to ensure a fair, non-discriminatory business environment for each country's firms.

The approach adopted by Starmer's Labor government, elected in July, contrasts with that of the previous Conservative administration, which took a robust path to differences with China - particularly over human rights, Hong Kong and allegations of Chinese espionage.

Starmer has long described his desire to build a relationship with China that is "rooted in the UK's national interests" by boosting trade, a task that may become more difficult if US President-elect Donald Trump follows through on his threat to impose tariffs on all imports.

China is Britain's fourth-largest trading partner, accounting for goods and services trade worth almost 113 billion pounds ($138 billion).