"Desert Oasis "- Oil Tycoon's Electric Vehicle Plan

Saudi Arabia plans to create an oasis for new energy vehicles in the 'Desert Kingdom'. After building its own electric vehicle brand Ceer and investing in the new American car making force Lucid and the new Chinese car making force Chinese Express, Saudi Arabia recently announced a partnership with Hyundai Motor to jointly build an assembly plant with an annual output of 50000 cars in the country

In 2016, Saudi Arabia launched its "2030 Vision", which aimed to increase the proportion of non oil energy exports to 50% of GDP and establish a renewable energy market. Subsequently, the Saudi government issued multiple policies aimed at promoting energy structure transformation and balanced development, addressing climate change, and making achievements in areas such as new energy vehicles. In November 2022, the Crown Prince and Prime Minister of Saudi Arabia stated at the United Nations Climate Conference that the goal of Saudi Arabia's sovereign wealth fund is to achieve net zero emissions by 2050 and renewable energy generation to account for 50% of total electricity generation by 2030; Thus achieving economic diversification and breaking away from dependence on oil.

In Saudi Arabia's "Vision 2030" plan, developing the electric vehicle industry is an important component. In 2022, the Saudi government launched an electric vehicle strategy, which not only proposed to increase the market share of electric vehicles, but also provided a series of incentives for consumers to purchase electric vehicles, including tax cuts and subsidies. In order to develop electric vehicles, Saudi Arabia has completed the relevant legislation, organizational structure, and technical standards for the infrastructure of electric vehicle charging stations in August 2022, and will accelerate the implementation of charging infrastructure.

Saudi Arabia has invested or expressed willingness to invest in multiple Chinese car companies. At the beginning of 2023, Geely Holding, Geely Automobile, Renault Automobile and Saudi Aramco signed a letter of intent for cooperation, and Saudi Aramco plans to acquire a minority stake in the joint venture through cash investment. In June of this year, the Saudi Ministry of Investment signed a $5.6 billion agreement with Chinese American Express to establish a joint venture for electric vehicle research and development, manufacturing, and sales in Saudi Arabia.

Saudi Arabia is located at the hub connecting the three continents of Asia, Africa, and Europe. In the long run, it has significant value for Chinese brand cars to 'go global'. Chinese companies, with a thorough understanding of the Saudi market, have taken the path of "going global" towards Saudi Arabia through technology, products, and services, which to some extent is equivalent to establishing a "bridgehead" based in the Middle East and facing Asia, Africa, and Europe. This is of great significance for leveraging the technological advantages of Chinese new energy vehicle companies, supporting Saudi Arabia's development of new energy vehicles and energy transformation, and enhancing the global influence of Chinese brands.