Saudi Arabia Advances a Two-Track Electric Vehicle Strategy to Build Industry and Drive Adoption
Riyadh pairs global manufacturing partnerships with a homegrown EV brand to accelerate diversification and technology transfer
Saudi Arabia is pressing ahead with a two-track electric vehicle strategy that combines global partnerships with domestic industrial development, aiming to build a full EV ecosystem while accelerating adoption at home.
The approach reflects a broader effort to diversify the economy under Vision 2030, reduce reliance on hydrocarbons over the long term and position the Kingdom as a regional hub for advanced manufacturing.
On one track, the Kingdom is backing large-scale manufacturing through international partnerships.
The most prominent is its support for Lucid, the US electric vehicle maker in which the Saudi Public Investment Fund is the majority shareholder.
Lucid’s manufacturing facility in King Abdullah Economic City is expanding from assembly to more comprehensive production, with plans to supply both the domestic market and exports.
Officials view the project as a catalyst for skills transfer, supply-chain development and the attraction of further foreign investment into advanced automotive technologies.
Running alongside this is a domestic-first track centred on Ceer, Saudi Arabia’s first homegrown electric vehicle brand.
Ceer is being developed with global technology partners and is intended to produce mass-market electric cars designed specifically for regional conditions and consumer preferences.
The company is expected to rely heavily on local suppliers over time, anchoring a national automotive value chain that includes components, software and services.
Beyond manufacturing, the strategy includes demand-side measures to stimulate EV uptake.
Authorities are expanding charging infrastructure, offering regulatory support and encouraging fleet electrification across government and corporate users.
Energy planners have also emphasised the advantage of pairing EV growth with Saudi Arabia’s expanding renewable power capacity, enabling cleaner electricity to feed transport demand.
By pursuing both international scale through established manufacturers and local ownership through a national brand, Saudi Arabia is seeking to balance speed with sovereignty.
The dual approach allows the Kingdom to access cutting-edge technology quickly while building domestic capability for the long term, reinforcing its ambition to play a leading role in the global energy transition without abrupt economic disruption.
The approach reflects a broader effort to diversify the economy under Vision 2030, reduce reliance on hydrocarbons over the long term and position the Kingdom as a regional hub for advanced manufacturing.
On one track, the Kingdom is backing large-scale manufacturing through international partnerships.
The most prominent is its support for Lucid, the US electric vehicle maker in which the Saudi Public Investment Fund is the majority shareholder.
Lucid’s manufacturing facility in King Abdullah Economic City is expanding from assembly to more comprehensive production, with plans to supply both the domestic market and exports.
Officials view the project as a catalyst for skills transfer, supply-chain development and the attraction of further foreign investment into advanced automotive technologies.
Running alongside this is a domestic-first track centred on Ceer, Saudi Arabia’s first homegrown electric vehicle brand.
Ceer is being developed with global technology partners and is intended to produce mass-market electric cars designed specifically for regional conditions and consumer preferences.
The company is expected to rely heavily on local suppliers over time, anchoring a national automotive value chain that includes components, software and services.
Beyond manufacturing, the strategy includes demand-side measures to stimulate EV uptake.
Authorities are expanding charging infrastructure, offering regulatory support and encouraging fleet electrification across government and corporate users.
Energy planners have also emphasised the advantage of pairing EV growth with Saudi Arabia’s expanding renewable power capacity, enabling cleaner electricity to feed transport demand.
By pursuing both international scale through established manufacturers and local ownership through a national brand, Saudi Arabia is seeking to balance speed with sovereignty.
The dual approach allows the Kingdom to access cutting-edge technology quickly while building domestic capability for the long term, reinforcing its ambition to play a leading role in the global energy transition without abrupt economic disruption.
