KSA: Saudi Arabia in talks with carmakers on manufacturing plans – Gulf Digital News

KSA: Saudi Arabia in talks with carmakers on manufacturing plans – Gulf Digital News

RIYADH: Saudi Arabia is in talks with several carmakers about manufacturing in the country, Saudi Investment Minister Khalid Al Falih said, with an announcement expected this year.

The discussions are part of plans to attract foreign investment to support the transformation of Saudi Arabia’s economy and diversify it away from oil.

“A car manufacturer will be announced before year-end, and following that there will be another one or two car manufacturers, and they will be cars of the future,” Falih said.

Luxury electric car maker Lucid is evaluating the opportunity for manufacturing in Saudi Arabia, but the company’s board has to decide based on the economics and competitiveness of choosing the Saudi market, the minister said.

“We hope they’ll chose the kingdom, it’s no secret they are evaluating the kingdom, they’re evaluating other countries, and at the end of the day they’ll make up a decision,” Falih said.

The July listing of Lucid, which aims to compete with Tesla, was a huge dividend for Saudi Arabia’s Public Investment Fund (PIF), its main state investor, which invested more than $1 billion in the company in 2018 for a substantial stake and invested more in February.

PIF, at the centre of Saudi plans to create new economic sectors