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Formula E: Partnership with Saudi Arabia Is a Global Model for Advancing Sustainable Transport

Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
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Formula E: Partnership with Saudi Arabia Is a Global Model for Advancing Sustainable Transport

Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)

Formula E’s partnership with Saudi Arabia and the Kingdom’s Public Investment Fund (PIF) is emerging as a global benchmark for redefining the future of sustainable transport and clean energy, aligned with the ambitions of Saudi Vision 2030.

Julia Pallé, Vice President of Sustainability at Formula E, said that the collaboration with the Kingdom stems from a shared vision, highlighting that both Saudi Arabia and the PIF aim to be agents of change.

One of the earliest joint initiatives was the launch of a fully female racing test in Saudi Arabia, soon after the country lifted its driving ban on women. This move reflected a mutual commitment to challenge existing norms and explore new opportunities.

Tracing the origins of Formula E, Pallé explained that the championship was launched eleven years ago with two main objectives: advancing electric vehicle (EV) technology and reshaping public perception. At the time, electric cars had limited range and options, with the Nissan Leaf being one of the few available models.

Thanks to the advancements spurred by Formula E, battery capacity has increased by over 200 percent. In the early seasons, drivers needed two cars to complete a race due to battery limitations, something that is no longer the case today.

Formula E has become a vital testing ground for automotive manufacturers to develop broader EV technologies, she said. Simultaneously, by hosting races in urban centers, the championship has helped integrate electric mobility into modern life, aligning it with contemporary and sustainable lifestyles.

Pallé noted that the partnership with PIF has extended Formula E’s presence in the Kingdom and opened the door to broader ambitions. Through initiatives like “Driving Force,” aimed at students, the collaboration is nurturing a new generation of changemakers by equipping them with knowledge in green skills, sustainability, and social impact.

She explained that in just one season, the initiative reached over 50,000 students, with plans to double that number in the upcoming season.

Another initiative, “Change. Accelerated. Live,” explores the broader narrative of how the PIF is contributing to a more sustainable and equitable future through sports, she told Asharq Al-Awsat.

Formula E does not view its growth as a contradiction to sustainability, but rather as an opportunity to accelerate innovation. The organization follows a technological roadmap that anticipates consumer challenges over the next five to ten years and works proactively to address them.

A recent example is a project launched in Jeddah, showcasing cutting-edge ultra-fast charging technology. The initiative aims to build confidence in electric mobility by highlighting real, existing solutions to infrastructure challenges.

Pallé pointed to tangible examples of race-to-road technology transfers. Nissan, for instance, enhanced battery performance by 200 percent based on lessons learned from the racetrack. Jaguar also implemented improvements from its I-PACE eTROPHY racing series into its consumer vehicles, resulting in a 10 percent increase in battery life for drivers worldwide.

On whether Formula E aims to compete with or replace Formula 1, Pallé made clear that the two are not rivals. She noted that Formula E offers a completely different experience, targeting a younger and more family-oriented audience. It was designed as a sport of the future, more accessible, more sustainable, and deeply aligned with environmental principles.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.