Saudi Arabia Ranks 23rd in the Global ADL GEMRIX Index, Signalling Progress in the E-Mobility Landscape – Arthur D. Little Report

• Norway maintains its position as the global leader in EV readiness in the ADL GEMRIX 2023 report, showcasing its continued commitment to electric mobility.
• Saudi Vision 2030 and the Saudi Green Initiative underscore the Kingdom’s commitment to a sustainable automotive future.
• The creation of CEER, the first Saudi Automotive Brand, marks a significant milestone in the Kingdom’s journey toward becoming a global player in the electric vehicle (EV) industry.
• Opening of the first LUCID manufacturing facility in the region in Saudi Arabia further heightens the Kingdom’s positioning in the EV industry.
• The grand scale of effort to build a comprehensive large scale EV ecosystem in the Kingdom will undoubtedly accelerate its index score advancement in the years ahead.

Riyadh, Saudi Arabia – 21 October 2023: Arthur D. Little (ADL), the world’s first management consulting firm, has unveiled its latest “Global Electric Mobility Readiness Index (GEMRIX) 2023,” indicating that Saudi Arabia has secured the 23rd position globally in electric vehicle (EV) readiness. This comes in line with the Kingdom’s ambitious Saudi Vision 2030 and its focus on sustainable development.

GEMRIX 2023, the third edition of the study, expands its scope to include 35 markets across all continents, making it the most comprehensive electric vehicle market readiness indicator available in the industry today. It reveals a substantial uptick in global electric vehicle adoption since its previous edition. Norway maintains its position as the global leader in EV readiness, but China emerges as a close contender. Following these market leaders, countries like Saudi Arabia are laying the groundwork for increased EV adoption.

Saudi Arabia is the biggest automotive market in the GCC region, with more than 50 percent of car sales in the region. The Kingdom has introduced the Saudi Green Initiative to promote green energy, emphasizing EVs. The initiative aims for 30 percent of total vehicles in the capital to be EVs by 2030.

Joseph Salem, Partner and Travel and Transportation Practice Lead at Arthur D. Little Middle East, stated, “Saudi Arabia’s strategic endeavours in the electric vehicle sector are both ambitious and actionable. The formation of CEER is a testament to the Kingdom’s commitment to lead in sustainable transportation.”

Saudi Arabia’s government incentives are propelling the coordinated development of charging infrastructure. This has instilled public confidence, as evidenced by a growing willingness to purchase EVs. This trend is fuelled by increased awareness of technology and sustainability.

In a joint venture between Saudi’s Public Investment Fund (PIF) and Taiwanese manufacturer Foxconn, the Kingdom announced the creation of CEER, aiming to develop, build, and sell several BEV models by 2025. Additionally, PIF acquired a 65% stake in the US-based EV brand Lucid, and just opened the first LUCID manufacturing facility in Saudi Arabia, further solidifying its commitment to the EV industry. Add to these achievements the recent announcement that the Public Investment Fund and Saudi Electricity Company have launched a new electric vehicle infrastructure company, which plans to set up 5,000 fast chargers across the kingdom by 2030. With these recent developments Saudi Arabia is set out to take a leading role in the e-mobility domain in the GCC region over the next year or two and to significantly progress in its index score from its current position in the group of Emerging EV markets.

Andreas Schlosser, Partner and Global Lead of the Automotive Group at Arthur D. Little, commented, “The Kingdom’s investment in Lucid and the creation of CEER are clear indicators of a favourable investment climate and a collective drive to make Saudi Arabia a leader in electric vehicle adoption.”

Saudi Arabia is also focusing on the development of public charging infrastructure, with key players like Electromin and ABB leading the way. Electromin has already installed 100 charging stations and plans to expand further with government support.

The Kingdom’s geographical advantage enables it to source and process rare minerals essential for battery production. A $6 billion investment has been announced for green steel processing and EV battery metals production projects, aiming to attract future investments.

Saudi Arabia’s comprehensive efforts to promote EV adoption and establish a robust domestic EV industry are not only transformative for the Kingdom but also pivotal for the global transition toward a more sustainable future. These initiatives, backed by significant investments and strategic partnerships, are setting the stage for Saudi Arabia to become a key player in the electric vehicle landscape. By fostering a favourable environment for EV manufacturers and consumers alike, the Kingdom is accelerating the pace of innovation and adoption. This multi-faceted approach is a testament to Saudi Arabia’s commitment to achieving its Saudi Vision 2030 and contributing to global sustainability goals.

To delve deeper into the findings and gain comprehensive insights from Arthur D. Little’s “Global Electric Mobility Readiness Index 2023” report, please visit https://www.adlittle.com/en/insights/report/global-electric-mobility-readiness-index-gemrix-2023