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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)
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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.

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Business

Bahrain Announces Investments and Partnerships in Industry, Technology, Tourism and Aviation

A scene from Gateway Gulf 2026, which concluded on Monday in the Bahraini capital, Manama (BNA)
A scene from Gateway Gulf 2026, which concluded on Monday in the Bahraini capital, Manama (BNA)
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Bahrain Announces Investments and Partnerships in Industry, Technology, Tourism and Aviation

A scene from Gateway Gulf 2026, which concluded on Monday in the Bahraini capital, Manama (BNA)
A scene from Gateway Gulf 2026, which concluded on Monday in the Bahraini capital, Manama (BNA)

Gateway Gulf 2026 saw the announcement of a series of investments, agreements and expansion projects across industry, technology, aviation, financial services, healthcare, tourism, education and real estate.

The announcements included plans to establish Bahrain's first electrical power transformer factory, open an office for global payments company Visa, launch a liquidity investment fund, and provide telecommunications services to Gulf Air Group, alongside healthcare and tourism projects expected to create more than 320 jobs.

The announcements came during the fourth edition of the forum, organized by the Bahrain Economic Development Board (Bahrain EDB) on November 1 and 2 under the theme "Redefining Global Partnerships and Driving Sustainable Growth," with the participation of investors, business leaders and policymakers.

Bahrain's First Power Transformer Factory

In the industrial sector, Amiri Industries launched its Amform project to establish Bahrain's first electrical power transformer manufacturing facility on a 23,000-square-meter site in the Hidd area.

The factory will produce medium-voltage distribution transformers to meet domestic demand and reduce reliance on imports, with plans to expand into Gulf Cooperation Council (GCC) markets at a later stage.

Technology and Aviation

In the technology sector, British company Lexness Technologies announced the launch of its operations in Bahrain, which will serve as a base for expansion into Gulf markets, focusing on artificial intelligence, automation, cybersecurity and digital transformation.

Global payments company Visa also announced plans to open an office in Bahrain in 2027 to strengthen its presence in the digital payments market and expand cooperation with financial institutions and businesses.

Batelco, part of Beyon Group, signed a five-year master services agreement with Gulf Air Group to provide telecommunications, networking, cloud services and satellite connectivity solutions as part of the group's digital transformation program.

The agreement includes connecting more than 1,000 employees across multiple locations and improving operational efficiency and customer communications.

Batelco also signed a two-year cooperation agreement with Bariq Al Retaj Real Estate Services to develop telecommunications solutions and smart home and building technologies.

Meanwhile, Beyon Connect signed a memorandum of understanding with Omani company PhazeRo to develop digital identity and electronic Know Your Customer (eKYC) solutions, beginning in Oman while exploring opportunities for expansion across the GCC.

Liquidity and Investment Fund

In financial services, ASB Capital, which manages $10.2 billion in assets, announced the launch of the Shariah-compliant ASB Liquidity Fund.

The fund will invest in short-term deposits, government and bank sukuk, and other eligible instruments across GCC and Middle East and North Africa markets, aiming to preserve capital, provide daily liquidity and manage volatility risks.

Healthcare and Tourism Projects

In the healthcare sector, Bahrain's Labour Fund, Tamkeen, signed an agreement with Mubadala Health Bahrain to establish a multidisciplinary medical facility developed through a partnership between M42 Group and Bahrain-based HealthVision.

The hospital will offer 20 medical specialties and create more than 200 jobs, alongside genetic testing services and AI-enabled precision medicine.

In tourism, Tamkeen signed an agreement to support more than 120 employment opportunities for Bahrainis at the Club Hawaii @ Bahrain Surf Park project, being developed by Edamah in collaboration with GFH Financial Group in the Bilaj Al Jazayer area.

Spanning more than 52,000 square meters, the project will feature a wave lagoon and tourism and entertainment facilities. It is expected to open this year and attract approximately 300,000 visitors annually.

British Investment in Education

In the education sector, Britain's Repton Schools Group announced plans to open a school in Bahrain for students aged three to 18.

The project will occupy a 32,000-square-meter site and offer the British curriculum, including International GCSE qualifications and A-Levels, becoming the 13th school in the group's network.

These projects reflect Bahrain's efforts to attract investment across diverse sectors, expand employment opportunities and strengthen the Bahraini economy's connections with Gulf and international markets.

Business

Saudi Arabia Tightens IPO Rules, Requires Underwriters to Purchase All Offered Shares

The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Tightens IPO Rules, Requires Underwriters to Purchase All Offered Shares

The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia's Capital Market Authority (CMA) has approved new regulatory provisions aimed at improving initial public offering (IPO) practices, tightening book-building requirements, strengthening underwriters' responsibilities and requiring companies to disclose forward-looking financial projections.

The measures are designed to improve the efficiency of IPOs and enhance the reliability of information available to investors.

Under the new provisions, underwriting agreements must be signed and become effective before the book-building process begins. Underwriters' commitment to purchase all shares offered must also take effect at the start of the process, reinforcing their responsibility to cover the offering even when investor demand is insufficient.

This means that an underwriter, typically an investment bank responsible for arranging and marketing an offering, will no longer be limited to managing the process and attracting investors. Instead, it will be obligated to purchase all shares offered in accordance with the underwriting agreement.

The CMA also clarified that if an underwriter's acquisition of the offered shares results in a breach of the listing requirements stipulated in the Listing Rules, the issuer's shares will not be listed. The underwriter will nevertheless remain obligated to purchase all offered shares, while the underwriting agreement may include a mechanism for disposing of those shares.

Measures to Prevent Inflated Subscription Orders

As part of the book-building process, the CMA introduced additional requirements to verify that orders submitted by participating investment institutions reflect their actual available liquidity, limiting financial solvency assessments to cash and cash equivalents.

The authority also stipulated that orders must constitute binding payment commitments, with payment due no later than the subscription payment deadline specified in the prospectus.

These requirements aim to curb orders that exceed investors' actual financial capacity. Large orders may indicate strong demand for an offering, but they do not necessarily reflect available liquidity or a genuine ability to pay.

The measures are expected to improve the credibility of reported subscription coverage levels by aligning them more closely with actual demand for the offered shares, supporting more efficient pricing and more accurate assessments of investor appetite.

Mandatory Disclosure of Financial Projections

The amendments also strengthen disclosure requirements by obligating issuers to include forward-looking financial projections in their prospectuses and registration documents.

These projections must include financial performance indicators covering the period following the most recently reported financial period and at least the subsequent fiscal year.

The CMA stipulated that projections must be clear, not misleading, and based on reasonable and measurable assumptions. Issuers must also disclose the methodology used to prepare them, along with material assumptions, risks and factors that could affect their realization.

These requirements will give investors insight into companies' expectations for future financial performance rather than requiring them to rely exclusively on historical results when evaluating whether to subscribe to an IPO.

The provisions also emphasize that forward-looking projections do not guarantee that the stated results will be achieved.

The CMA has further strengthened the responsibilities of financial advisers by requiring them to exercise appropriate professional due diligence when advising issuers on their financial projections and to form a reasonable opinion on those projections.

This is intended to increase professional scrutiny of information provided to investors.

Enhancing IPO Market Efficiency

The CMA published the draft regulatory provisions on September 22, 2026, through the Istitlaa public consultation platform and its website for a 30-calendar-day consultation period to gather feedback from the public and government entities.

The approved provisions will take effect on the date of their publication.

Business

Aramco Confronts Repercussions of War with Emergency System as Markets Await Its Results

Pipelines in the Saudi desert. (Aramco)
Pipelines in the Saudi desert. (Aramco)
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Aramco Confronts Repercussions of War with Emergency System as Markets Await Its Results

Pipelines in the Saudi desert. (Aramco)
Pipelines in the Saudi desert. (Aramco)

As markets anticipate Saudi Aramco's announcement of its financial results for the third quarter of 2026 on Tuesday, the repercussions of the US–Israel war on Iran stand out as one of the most prominent factors testing the company's ability to maintain its operations and the flow of its supplies to global markets.

Despite attacks that struck oil facilities and disruptions to shipping traffic through the Strait of Hormuz since the outbreak of the war on February 28, the company continued to rely on a system of infrastructure and operational alternatives developed over decades. These measures included pipelines, alternative export outlets, and international inventories, alongside accelerating repairs to damaged facilities and sourcing maintenance requirements locally.

Chief among these alternatives is the East–West pipeline, which transports crude oil from the Eastern Region to the port of Yanbu on the Red Sea, bypassing the Strait of Hormuz and providing an export outlet when navigation through the strait is disrupted.

The importance of this route stems from advance planning to diversify export outlets. This was underscored by Saudi Minister of Energy Prince Abdulaziz bin Salman at the International Petroleum Conference in October 2026, when he stressed the need for providing alternatives before crises occur, pointing to the role of strategic infrastructure in boosting the security of energy supplies.

In parallel with these alternatives, Aramco bolstered its measures to manage attacks and disruptions by accelerating the repair of damaged facilities, securing maintenance materials and spare parts locally, and utilizing crude inventories both inside and outside the Kingdom. The company is also studying additional options to transport oil away from maritime corridors that are vulnerable to disruption.

Saudi Minister of Energy Prince Abdulaziz bin Salman at the International Petroleum Conference in October 2026. (SPA)

These measures take on particular significance in light of the repercussions of the war that broke out on February 28, which extended to oil facilities in the Gulf, coinciding with the disruption of shipping traffic through the Strait of Hormuz and escalating concerns over the continuity of supplies to global markets.

Aramco's facilities were among those targeted by the attacks. Two days after the outbreak of the war, the Ras Tanura refinery was targeted by two drones that were intercepted. Their debris caused a limited fire and minor damage, without affecting the supply of petroleum products to the domestic market.

In confronting these risks, the company focused on accelerating damage repair and restoring operations, while ensuring the continuous flow of oil to global markets.

Aramco's President and CEO Amin Nasser revealed aspects of these preparations in a Reuters interview published on October 15. The measures included utilizing drones to assess damage, securing repair materials, and deploying specialized teams to handle multiple incidents simultaneously.

Response teams and repair inventories

Aramco has bolstered its incident response capabilities and accelerated the repair of damaged facilities through an emergency system that includes specialized teams, inventories of repair materials and spare parts, and tools to assess damage and determine technical requirements.

Nasser explained that Aramco developed specialized rapid-response teams following the 2019 attacks targeting the Abqaiq oil processing facility, and has since worked to boost its readiness to handle incidents, including simultaneous ones.

According to Nasser, the company produces locally or maintains in its warehouses approximately 90 percent of the materials required for repairs, which reduces reliance on imports and speeds up the restoration of operations.

Nasser said Aramco's response speed is more than six times the industry average, allowing damaged facilities to resume operations within days in many cases.

The emergency system is not limited to facility repairs, but also encompasses business continuity plans, the utilization of domestic and international inventories, and multiple routes for transporting and exporting crude oil, which helps the company maintain supplies despite production and shipping disruptions.

Aramco's President and CEO Amin Nasser at a petroleum conference in Riyadh. (Asharq Al-Awsat)

Restoring the capacity of the East–West Pipeline

With growing reliance on the East–West pipeline to bypass shipping disruptions through the Strait of Hormuz, its role has emerged as a primary corridor for transporting oil from the Eastern Region to the port of Yanbu on the Red Sea, and from there to global markets.

However, this route was not immune to the repercussions of the war; one of its pumping stations was attacked in April, which reduced flows by around 700,000 barrels per day. On April 12, the Ministry of Energy announced the restoration of the pipeline's full operational capacity, which stands at around seven million barrels per day.

The concept of establishing the pipeline dates back to the early 1980s during the Iraq–Iran War, when Saudi Arabia, under the directives of King Fahd bin Abdulaziz, decided to diversify its oil export outlets in anticipation of shipping disruptions in the Gulf. In 1995, its capacity was raised to around five million barrels per day, as reviewed by Energy Minister Prince Abdulaziz bin Salman during the International Petroleum Conference in October 2026.

Infrastructure readiness

On April 9, the Ministry of Energy announced that the targeting of a pumping station reduced pipeline flows by some 700,000 barrels per day, while subsequent attacks also impacted production at the Manifa and Khurais fields. Just three days later, the Ministry confirmed the restoration of full pumping capacity on the East-West pipeline and the recovery of affected production at the Manifa field, with work ongoing at the Khurais field.

In September, the pipeline was preemptively shut down to verify its safety following a new attack. On October 6, the Minister of Energy said operations had resumed within five to six days, with flows reaching around 5.8 million barrels per day, compared to its maximum capacity of seven million barrels per day.

These developments reflect the importance of rapidly repairing pumping stations and restoring operations at a time of increased reliance on export routes via the Red Sea to compensate for shipping disruptions in the Strait of Hormuz.

An integrated system

In its announcement of first-quarter results for 2026, Aramco said that it had activated business continuity plans to manage the repercussions of the war. The company utilized the East–West pipeline along with domestic and international storage capacities, in addition to leveraging the diversity of its assets and infrastructure.

In a speech delivered in London on October 5, Nasser stated that the company's resilience also relies on global strategic inventories, spare production capacity, multiple grades of crude, domestic gas inventories, and the Bahri tanker fleet. Facility preparations also encompass backup equipment and the segregation of critical utilities to limit the impact of disruptions.

Storage facilities at Ras Tanura. (Aramco)

Additional export options

Alongside boosting the efficiency of existing infrastructure, Aramco is studying additional options to transport oil to global markets, aiming to reduce reliance on maritime corridors vulnerable to disruption.

Nasser stated that the company is exploring alternative routes without disclosing their details, explaining that they will be announced once a final decision is reached.

This coincides with a Saudi push to expand oil transport capacity through pipelines. In statements made in October, the Minister of Energy spoke of a target to increase the capacity of oil export pipeline routes to ten million barrels per day, as part of ongoing efforts to bolster supply security.

Diversifying crude transport options enables the rerouting of exports when certain pathways are disrupted and mitigates dependence on vital maritime checkpoints, while expanding the pipeline network introduces an additional layer of readiness to counter supply disruptions.

Overseas inventories

Supply management options during crises are not limited to altering transport routes. Storing crude oil outside the Kingdom allows volumes to be held close to consumer markets, providing greater flexibility in meeting customer needs when shipping lanes are disrupted or tanker arrivals are delayed. Saudi Aramco is actively seeking to expand these options, with its latest step coming via an initial understanding with Singapore.

On October 26, Saudi Arabia and Singapore announced an initial understanding to store Saudi crude oil in the Jurong Rock Caverns on Singapore's Jurong Island.

The facility is located underground at a depth of around 150 meters, with a total capacity of nearly nine million barrels of liquid hydrocarbons. The storage of Saudi crude oil at the facility is expected to begin during the second half of 2027.

Singapore is not the company's only international storage point, as Aramco maintains storage arrangements in Okinawa and Kiire in Japan, Ulsan in South Korea, Rotterdam in the Netherlands, and facilities linked to the Sumed pipeline system in Egypt. These strategic locations keep crude close to consumption centers and provide vital alternatives for meeting customer demand during shipping disruptions.