The Ministry of Investment announced that Lucid Electric Vehicles Company has started building an advanced factory in the Kingdom, with a production capacity of 155,000 cars annually and with investments of more than 12.3 billion riyals.
His Excellency the Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, explained that the start of developing the electric car industry in the Kingdom reflects the Kingdom’s strong commitment to attracting quality investments that contribute to diversifying the economy, transferring technology and developing skills among Saudi youth, and reflecting the Kingdom’s global commitment to promoting the green economy and reducing carbon emissions.
His Excellency welcomed the announcement by Lucid Electric Vehicles Company to start building its factory, which confirms the competitiveness of the business environment in the Kingdom according to the highest international standards, and in a manner that works to strengthen its position as a preferred investment destination for qualitative and advanced investments, stressing that modern technologies and innovations lead the global economy and shape its future. And that we can provide investment opportunities and facilities to investors and companies that aspire to participate in shaping the future of the global economy, and contribute to supporting economic diversification efforts in the Kingdom in accordance with Vision 2030.
On the Kingdom’s efforts to develop the industrial and transport sectors, His Excellency the Minister of Investment said that the development of the electric vehicle manufacturing sector forms part of the Kingdom’s broader efforts to advance the industrial sectors and advanced industries, and play a leading and influential role in developing the future of transportation and urban life in the world, and the transportation sector plays an important role. In the Kingdom’s transition to a greener economy and in the Kingdom’s efforts to achieve its commitment to reach zero neutrality by 2060.
The Lucid Company factory will produce (4) different types of electric cars starting in 2023, and the factory will reach its full capacity in 2028, amounting to (155,000), and there will be two exclusive types for the factory to be built in the Kingdom and export approximately (95%) of its production. This supports the balance of payments in the Kingdom, in addition to supporting supply chains and opening new investment opportunities in the Kingdom.
Lucid’s electric vehicle factory will be located in the Industrial Valley in King Abdullah Economic City. The city provides competitive advantages and solutions for investors and companies in energy needs, local supply chains, and a factory location that facilitates access to global logistics services.
The Kingdom has recently declared its commitment to purchase (50,000) electric vehicles with the possibility of purchasing (100,000) additional vehicles during the next ten years, as it is expected to start delivering the factory’s electric vehicles in the Saudi market during this year, as the factory will meet the growing demand for electric vehicles in the Kingdom and the region It will also enhance the export capacity of the Middle East markets from the Kingdom.
It is noteworthy that the Kingdom has witnessed an increase in foreign direct investment in recent years, as foreign direct investment reached its highest level in more than a decade in 2021, driven by the Kingdom’s ambitious economic transformation agenda in accordance with Vision 2030 and the National Investment Strategy launched last year.