On Thursday, Saudi Crown Prince Mohammed bin Salman announced the launch of the “Seer” company to produce electric cars in the Kingdom.
This new company is the product of a joint venture between the Saudi Public Investment Fund, Taiwanese company Foxconn and Germany’s BMW.
Fund said in Official statement on its websiteBMW will provide licenses for component technology related to electric vehicles for use in the development of SER vehicles.
Seer will design, manufacture and sell electric cars equipped with advanced technology systems, such as autonomous driving, in the Kingdom and the Middle East, including sedans and SUVs.
His Royal Highness the Crown Prince today announced the launch of @Certhe first Saudi brand of electric vehicles.
The launch is in line with the #PIFstrategy 2021-2025 to unlock the capacities of promising sectors locally.#Guide the future#PIF
Find out more: https://t.co/dyJ8eLmf0N pic.twitter.com/eWHG3HaV0D
– Public investment fund (@PIF_en) November 3, 2022
SIER will attract foreign direct investment of up to 562 million Saudi riyals ($ 149 million) to support the economy and create 30,000 jobs.
SIER’s contribution to GDP is projected to reach 30 billion Saudi riyals (about $ 8 billion) by 2034.
The fund explained in its statement that “Foxconn will develop the electrical system for the cars (…) and the cars will be quality controlled to the highest international standards, and it is expected that Sir cars will be available for sale during 2025. “
she says “BloombergThis project is a “push that could help accelerate the oil-dependent kingdom’s efforts to diversify its economy.”
He notes that “Saudi Arabia has had the ambition for years to develop a local auto industry, to diversify away from oil, but these efforts have mostly failed. The kingdom recently tried a different tactic, whereby the fund invests in this sector “.
He pointed out that the fund has acquired a majority stake in the American company “Lucid” for the production of electric cars and that there is a plan for the company to build a factory in King Abdullah Economic City, near a major trading port on the Red Mare. .
The newspaper reported: “The Wall Street newspaperFoxconn of Taiwan, officially known as the Hon High Precision Industry, will develop “vehicle electronics, including entertainment, connectivity and autonomous driving.”
The newspaper notes that “the Saudi government previously said it hoped Lucid would attract other industrial companies to create a local supply chain. So the deal with Foxconn is part of attempts to attract foreign companies to work in the country, although not. it is clear if the Taiwan company plans to invest its capital in the joint venture “.
“Foreign investment in Saudi Arabia has remained low in recent years, despite the efforts of Prince Mohammed bin Salman to restructure its economy,” he says. “International companies have complained about slow payments from government contractors, retroactive taxes and outdated bureaucracy.”
However, he adds, “High oil prices mean the Saudi economy is improving this year and economic growth is expected to be among the highest in the world. Last month (October), the Saudi government announced national strategies aimed at attract billions of dollars of investment by offering huge incentives to companies.
And the newspaper stressed that “building an electric car from scratch has proved difficult for startups, without drawing on decades of experience with other companies”.
