Analysis of the Middle East Saudi Arabia new energy electric vehicle and charging station market in 2025 (PartⅠ)

Analysis of Saudi Arabia’s new energy electric vehicles and charging station market Saudi Arabia is investing heavily in the electric vehicle (EV) market to achieve the economic diversification goals in the “Vision 2030” and reduce its dependence on oil.

 

Market introduction

1. Analysis of Saudi Arabia’s new energy electric vehicles and charging station market Saudi Arabia is investing heavily in the electric vehicle (EV) market to achieve the economic diversification goals in the “Vision 2030” and reduce its dependence on oil. To this end, the Saudi government has promoted a number of infrastructure and industrial development initiatives, including collaborating with major global companies to build a domestic electric vehicle production ecosystem. In 2022, Saudi Arabia launched its first local electric vehicle brand Ceer, cooperating with Foxconn for production. In addition, American electric vehicle company Lucid Motors plans to build its first overseas factory in Saudi Arabia, with an expected annual output of 150,000 electric vehicles. These initiatives will not only promote Saudi Arabia to become an important player in the electric vehicle industry, but are also expected to significantly increase its GDP by 2034.

Saudi Arabia is also rapidly building electric vehicle charging infrastructure, which is key to the development of the electric vehicle market. The government plans to electrify 30% of Riyadh's vehicles by 2030 and build charging stations across the country. By providing government subsidies and financial support, electric vehicles are becoming a viable option for more citizens and businesses. In addition, Saudi Arabia's future innovative city Neom will also fully support electric vehicles, further increasing the demand for charging networks.

In terms of geographical location, Saudi Arabia is located at the intersection of Europe, Asia and Africa, and plans to take advantage of its proximity to mineral resource-rich areas in Africa to supply key minerals required for battery production, such as lithium and cobalt. This geographical advantage reduces transportation costs and improves the efficiency of the supply chain, allowing Saudi Arabia to occupy a place in global electric vehicle production and exports.

Through these bold policies and projects, the Kingdom hopes to build a self-sufficient, diversified economy around sustainable transportation and become an important hub in the global electric vehicle market.

 

2. Segmentation of Saudi Arabia’s new energy electric vehicles and charging stations industry. Saudi Arabia’s new energy electric vehicles and charging stations market has gradually built a multi-level industrial structure with the development of “Vision 2030”. The specific breakdown is as follows:

Infrastructure construction

 

Charging network layout: The Saudi Public Investment Fund (PIF) and the Saudi Electricity Company (SEC) jointly established an electric vehicle infrastructure company to establish an extensive charging network across the country. It plans to cover more than 1,000 locations and install more than 5,000 fast charging stations by 2030 to improve charging convenience for electric vehicle users.

Regional distribution strategy: not only set up charging stations in major cities, but also expand to main roads between cities to ensure the charging needs of electric vehicles for long-distance driving. This layout will help promote the popularity of the electric vehicle market.

 

Equipment research and development and localized production

Localization of research and development: Gradually localize the technology of charging equipment and electric vehicle parts to reduce dependence on imports and enhance domestic independent innovation capabilities. This goal is consistent with Saudi Arabia’s strategy of promoting local industrial development in its “Vision 2030”.

Manufacturing integration: By attracting cooperation from international electric vehicle manufacturers, Saudi Arabia is establishing localized electric vehicle production capabilities, including vehicle production and key parts manufacturing. This move is expected to drive the development of local supply chains and create a large number of job opportunities.

 

Participation of private enterprises and diversified cooperation

Public-private partnership model: The newly established infrastructure company is not only led by the government, but also encourages private enterprises to participate in the expansion of the charging network through the public-private partnership model. The participation of multiple parties has accelerated the deployment of new energy charging stations.

International cooperation: Through cooperation with global electric vehicle manufacturers and technology companies, Saudi Arabia has further improved the local technology level and promoted the upgrading of the new energy industry chain.

Through the above segmentation strategy, Saudi Arabia is committed to building a comprehensive new energy electric vehicle ecosystem, which not only supports economic diversification, but also will enhance Saudi Arabia's international competitiveness in the field of new energy.

 

3. Saudi Arabia's government policy on new energy electric vehicles and charging stations

In order to promote the new energy electric vehicle and charging station industry, the Saudi Arabian government has formulated a number of support policies to achieve the economic diversification and environmental protection goals of the "Vision 2030". These policies cover infrastructure construction, industrial investment incentives, technological innovation and talent training.

 

Infrastructure construction policy

Public Investment Fund-led construction: The government cooperated with Saudi Electricity Company through the Public Investment Fund (PIF) to establish an electric vehicle infrastructure company, planning to deploy more than 5,000 fast charging stations across the country. This policy ensures the wide coverage of the charging network, especially in major cities and their main transportation routes, to meet the future market demand for electric vehicles.

Policy subsidies: In order to attract private enterprises and foreign capital to participate in the construction of charging stations, the Saudi government provides policy subsidies, especially in the construction of charging stations, land use and operation management. Provide funding and preferential conditions to encourage enterprises to enter this emerging market.

 

Tax incentives and investment incentives

Tax exemptions: The government implements tax exemption policies for new energy-related enterprises, including equipment import taxes and corporate income tax, which reduces the operating costs of enterprises and attracts internationally renowned electric vehicle and charging station companies to set up R&D and production bases in Saudi Arabia.

Foreign investment incentive policy: Saudi Arabia actively attracts international new energy companies by simplifying the entry procedures for foreign-funded enterprises and providing financial support. The government also encourages cooperation with local companies to promote the local development of the electric vehicle and charging station industry chain.

 

Technical R&D support

R&D funding: The Saudi government has set up special R&D funds to support the localization of electric vehicles and charging technology. In particular, in terms of battery technology, fast charging technology and intelligent charging management systems, it accelerates technological innovation by funding innovative companies.

Innovation Center: Establish new energy technology innovation centers in multiple cities, encourage cooperation with universities and scientific research institutions to cultivate local technical experts and R&D teams, and help the long-term development of the electric vehicle industry.

 

 

Environmental protection and carbon emission standards

Strict emission standards: Saudi Arabia is formulating strict emission standards, requiring the gradual restriction of fuel vehicle sales in the future and accelerating the popularization of electric vehicles. This not only improves air quality, but also encourages consumers to accept new energy electric vehicles.

Green transportation policy: The government has introduced a green transportation plan to promote the transformation of official vehicles and public transportation systems to new energy, which will serve as a pioneer in the electric vehicle market and drive the comprehensive upgrade of public transportation and personal use.

 

Public awareness and education

Publicity and education activities: The government actively carries out publicity activities related to electric vehicles and charging piles to enhance public awareness and acceptance of new energy vehicles. Through the popularization of environmental education and energy-saving concepts, consumers' usage habits will be gradually changed to promote the popularization of electric vehicles.

Talent training plan: The government has also launched a talent training plan in the field of new energy. Through cooperation with universities and special training, local technical talents are trained to provide human support for the development of the electric vehicle industry.