Oil-rich Saudi Arabia establishes its first electric car business

As part of a larger effort to diversify the economy of the largest oil producer in the world, Saudi Arabia announced on Thursday the launch of its first brand of electric automobiles.

According to the official Saudi Press Agency, the business, known as Centre, “will contribute to Saudi Arabia’s efforts towards carbon emissions reduction and promoting sustainability to address the impact of climate change.”

It is a collaboration with Foxconn, the largest employer in China’s private sector, which “will design the electrical architecture of the cars,” according to SPA.

Including sedans and sports utility vehicles, Ceer “will design, build, and distribute a variety of automobiles for consumers in Saudi Arabia and the MENA area,” the business stated, adding that it was anticipated to create “30,000 direct and indirect employment.”

According to SPA, CEV automobiles “are planned to be accessible in 2025.”

Saudi Arabia and US-based Lucid Motors, which is establishing manufacturing in the country, struck a contract in April to buy up to 100,000 electric vehicles over the following ten years.

Similar to the Lucid transaction, Ceer is supported by the Crown Prince of Saudi Arabia’s Vision 2030 reform goal, which focuses on quick economic diversification, and is overseen by the Saudi sovereign wealth fund.

Prince Mohammed said on Thursday that Saudi Arabia is “not just building a new automotive brand; we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, supports the private sector, and contributes to increasing Saudi Arabia’s GDP over the next ten years.”

Environmental activists expressed scepticism when Saudi Arabia vowed to attain net zero carbon emissions by 2060 in advance of the COP26 climate change meeting.

Recently, Saudi leaders have emphasized the necessity for more fossil fuel investment, claiming that prioritizing climate change at the price of energy security will make inflation and other economic problems worse.