Saudi Arabia's EV push signals long-term investment strategy: Alkhorayef
RIYADH: Saudi Arabia's investment in electric vehicles reflects how the Kingdom is shaping its future through strategic, long-term bets, according to a senior minister.
Speaking during a panel discussion at the Qatar Economic Forum in Doha, Minister of Industry and Mineral Resources Bandar Alkhorayef stated that Saudi Arabia's push toward EV manufacturing demonstrates the Kingdom's commitment to shaping a modern and sustainable economy.
His comments come as Saudi Arabia ramps up efforts to position itself as a regional hub for automotive manufacturing, particularly in electric vehicles. Backed by the Public Investment Fund, the Kingdom has invested in ventures such as US-based Lucid Motors, which is building a production facility in King Abdullah Economic City.
As part of its broader diversification drive, Saudi Arabia aims to produce over 300,000 vehicles annually by 2030.
'Betting on EVs is also showing you how we think as a country. We are investing in the future,' he said.
He added: 'Automotive is a sector that we have been waiting to attract for many years, that our vision is a great enabler that brought the sector to Saudi. We are the largest country exporting cars with no local manufacturing, and I think it's the right move.'
Alkhorayef emphasized that the Kingdom's economic transformation under Vision 2030 centers on diversification, with mining and industrial development playing a key role in that shift.
'In our vision — Saudi Vision 2030 — diversification of our economy is key, and definitely mining and industry are both areas where we can see great opportunities,' he said.
Discussing the Kingdom's execution capabilities, the minister said Saudi Arabia has mastered 'the art of execution,' stressing that successful implementation of plans, not just strategy, is what builds investor confidence.
He highlighted mining as a strategic sector, noting that the country has significantly reformed its regulatory framework.
'We have been able to introduce, I would claim, one of the best — if not the best — mining investment laws globally… We have been able to reduce the licensing time from the global average of three to five years to six months,' Alkhorayef said.
Touching on global mineral demand, he said: 'We are actually in a race with time to ensure that we have the right quantities of minerals and metals to satisfy the global need in energy transition, in automation, in technology, and in defense.'
The minister pointed to the Future Minerals Forum hosted by the Kingdom as a critical platform to address such challenges, uniting governments, private sector players, and financial institutions to improve exploration, refining, and supply chain resilience.
On the topic of supply chains and national resilience, Alkhorayef explained that Saudi Arabia's localization strategy goes beyond national security.
'It is really capturing a new value. Today in manufacturing, scale is becoming less important because of new technologies that are being introduced,' he said.
Alkhorayef continued: 'Today in manufacturing, in mining, and in many of the sectors we intend to build in Saudi, are all built on new technologies. How can we ensure that while we are growing our economy, we are creating the right jobs for our people?'
Addressing the role of governments in enabling private sector growth, Alkhorayef stressed the need for proactive governance.
'Without government really helping the private sector to capture different value, it would be very hard to see the growth in the private sector,' he said, stressing the importance of infrastructure, regulation, and digital security in encouraging investment.
He concluded by highlighting the Kingdom's export achievements: 'Last year is a great demonstration of the growth we have done. 2024 was the record high export of Saudi Arabia. Non-oil export — we grew from 16 percent contribution in non-oil export to 25 percent contribution of our GDP in non-oil export. The non-oil, non-petrochemical growth of exports was 9 percent last year,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Saudi Arabia pitches $2.5tn mining sector potential to Canadian firms
JEDDAH: Canadian companies have been presented with exploration opportunities in Saudi Arabia's mining sector during a roundtable in Vancouver. Officials from the Kingdom's Ministry of Industry and Mineral Resources presented investment options to representatives from 25 firms, outlining the goals of the government's Comprehensive Mining Strategy, according to the Saudi Press Agency. The speakers also highlighted the competitive advantages of the Kingdom's investment environment and its ongoing efforts to develop the mining sector, maximizing its contribution to economic diversification. The initiative is part of the Ministry of Industry and Mineral Resources' ongoing efforts to attract high-quality investments to Saudi Arabia's mining sector, with the Kingdom's mineral wealth estimated at around SR9.3 trillion ($2.48 trillion). this effort also includes the Future Minerals Forum, launched in 2022 as an annual international conference where global mining leaders collaborate, share knowledge, and tackle key industry challenges and opportunities. The Vancouver meeting is one of a number set to be held ahead of the fifth edition of the Kingdom's Future Minerals Forum in January, and according to SPA: 'Roundtable participants reaffirmed FMF's vital role in shaping the future of the global mining sector and developing effective solutions to its challenges amid ongoing shifts in the energy and industrial landscapes.' The report added that the ministry also held a seminar with investors in Toronto, where it also presented promising investment opportunities in the Kingdom's mining sector. The meetings build on the momentum of high-level engagement between Canada and Saudi Arabia, including Industry Minister Bandar bin Ibrahim Alkhorayef leading a delegation to Ottawa and Toronto in October to advance bilateral cooperation following the restoration of diplomatic ties in May 2023. The visit also highlighted Saudi Arabia's interest in Canada's expertise in digital financial technologies, geological surveying, and human capacity development, aligning with the Kingdom's efforts to build a knowledge-based, innovation-driven mining sector under Vision 2030. In 2023, the Kingdom's non-oil exports to Canada totaled SR140 million, mainly consisting of base metals and plant products. In contrast, non-oil imports from Canada reached SR2.89 billion, including locomotives, pharmaceuticals, optical and imaging equipment, and electrical devices.
Arab News
3 hours ago
- Arab News
Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast
SINGAPORE: Oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand. Brent crude futures fell 12 cents, or 0.18 percent, to $67.65 a barrel by 10:18 a.m. Saudi time, ahead of the August contract's expiry later on Monday. The more active September contract was at $66.56, down 24 cents. US West Texas Intermediate crude dropped 36 cents, or 0.55 percent, to $65.16 a barrel. Last week, both benchmarks posted their biggest weekly decline since March 2023, but they are set to finish higher in June with a second consecutive monthly gain of more than 5 percent. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the US bombed Iran's nuclear facilities and then slumped to $67 after President Donald Trump announced an Iran-Israel ceasefire. The market has stripped out most of the geopolitical risk premium built into the price following the Iran-Israel ceasefire, IG markets analyst Tony Sycamore said in a note. Further weighing on the market, four delegates from OPEC+, which includes allies of the Organization of the Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day in August, following similar-sized output increases for May, June and July. OPEC+ is set to meet on July 6 and this would be the fifth monthly increase since the group started unwinding production cuts in April. However, bearish pressure from concerns over slower global oil demand, particularly from China, is likely to persist. Uncertainty around global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova. China's factory activity contracted for a third straight month in June, as weak domestic demand and faltering exports weighed on manufacturers amid US trade uncertainty. In the US, the number of operating oil rigs, an indicator of future output, fell by six to 432 last week, the lowest level since October 2021, Baker Hughes said.
Asharq Al-Awsat
4 hours ago
- Asharq Al-Awsat
Saudi Women Propel Unemployment to Record Lows
Saudi Arabia has achieved the lowest unemployment rate in its history, dropping to 6.3% in the first quarter of 2025. The milestone was driven largely by the growing participation of Saudi women in the workforce, marking a major shift in employment under Vision 2030. The figure represents an unprecedented annual decline of 1.3 percentage points and a drop of 0.7 points from the previous quarter. The General Authority for Statistics reported that Saudi women's unemployment fell to 10.5%, its lowest level ever recorded, after dropping more than 11 percentage points since 2021. Women's labor force participation also rose to 36.3%, while their employment rate climbed to 32.5% of the total population. These gains reflect the impact of policies designed to expand opportunities and improve the quality of jobs available to women. Human resources specialist Ali Al Eid described the achievement as the result of effective collaboration between government entities and the private sector. 'What we see today is the outcome of years of focused policies to empower national talent and create a work environment that fosters growth,' he told Asharq Al-Awsat. Al Eid noted that targeted initiatives such as Saudization, skills development, and support for entrepreneurs contributed significantly to reducing unemployment. He added that shifts in employment preferences, especially among young Saudis, have accelerated these changes. He emphasized that the Saudi labor market has proven resilient despite recent global challenges. The expanding role of women has been especially critical in lowering unemployment and strengthening economic participation. Al Eid highlighted that young Saudis' increasing focus on vocational training and acquiring specialized skills has lifted labor participation to record highs in recent years. 'Continuing professional development programs is essential to ensure national talent is prepared for the future,' Al Eid said, pointing to Vision 2030 projects in tourism, technology, industry, and logistics as key sources of quality jobs. He also underscored the importance of aligning education outcomes with labor market needs to close skill gaps and prepare young people for emerging sectors. 'What has been accomplished is a significant milestone on the road to broader success,' he added. 'The next priority is to focus on the quality and sustainability of jobs and to enable Saudis to take on leadership and specialized roles that will drive long-term development.' Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics, said the results demonstrate the effectiveness of the Kingdom's economic and social reforms. He noted that the creation of more diverse, higher-quality roles - particularly those suited to women's skills - has been instrumental in lowering unemployment. 'These positive indicators will help attract new investment, especially as the country prepares for major projects extending through 2034,' Al-Jassar said. He added that reaching a 5% unemployment rate under Vision 2030 has become a realistic goal. Among Saudi men, the unemployment rate declined slightly to 4%, while their participation rate rose to 66.4%. Employment among Saudis aged 25–54 increased to nearly 66%, with unemployment falling to 5.4%. Overall, including Saudis and expatriates, unemployment dropped to 2.8%, compared to 3.5% a year earlier. Labor participation rose to 68.2%. These results follow Saudi Arabia's early success in meeting its target of reducing unemployment to 7%, five years ahead of schedule, prompting a new objective of 5% by the decade's end.
