Oil-rich Saudi Arabia has been investing in electric vehicle technology for years. Laying the groundwork for a Saudi Arabian EV maker is the next logical step. The country has been actively investing in EV automakers in other countries. This new venture will create economic stability and careers for the people of the wealthy nation.
World-class consultants brought in
The massive consulting firm Boston Consulting Group was tapped to work with Saudi Arabian officials. A spokesperson for the Saudi Arabian Public Investment Fund told Bloomberg that the country is committed to advancing its economic diversity, and it involves some major players. This is a far cry from many of the small, independent EV startups seen elsewhere.
Boston Consulting Group is a major player in nearly every industry. They proudly partner with companies like Adobe, Microsoft, and Google. Some of the best minds across several industries are involved in the coming project. The global auto industry is watching what is sure to be an interesting planning and development process.
Details are light but Saudi Arabia has a clear timeline
Few details about the intended EV maker have been publicly released. The project is in the early stages of development. The development team has built upon the existing plans to increase local manufacturing and expand Saudi Arabia’s automotive industry infrastructure.
Representatives of the PIF have confirmed a projected timeline to negotiate the details of the new plan. Yasir Al-Rumayyan, head of the kingdom’s wealth fund, said in a January meeting: “Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”
This is an exciting project with nearly limitless potential. The EV market is rapidly expanding with new makers, many of which without the depth of resources Saudi Arabia has. The amount of funding available for the project means the world could soon be seeing some very high-tech EVs from this yet-to-be-named brand.
Saudi Arabia’s diversification is a responsible move
Saudi Arabia has the 19th largest global economy, and it’s largely oil dependant. The country’s largest source of wealth is, ironically, its largest potential pitfall. Automakers are steadily making the switch to electric vehicles. As the world continues to adapt to renewable energy sources, Saudi Arabian officials expand the country’s economic horizons.
The Saudi Arabian Public Investment Fund (PIF) has been funding electric vehicle innovation for years. The country’s sovereign wealth fund poured $2.5 billion into electric automaker Lucid. According to Forbes, this brings the PIF’s total investment in the EV maker to over $3 billion since 2018
This unprecedented period in alternative energy sources has pushed global economies to diversify. Countries that were once traditionally dependant on oil are making big moves to protect their economic interests. As Saudi Arabia takes its first steps into EV manufacturing, it could be taking its first step toward an electric future.