- Saudi Arabia’s electric vehicle market tripled last year, reaching nearly 800 cars, despite its small size compared to the US and China.
- Limited charging infrastructure and high EV prices present significant hurdles for widespread adoption in the kingdom.
- Saudi Arabia plans to produce 300,000 EVs annually and deploy 5,000 public charging stations by 2030, aligning with its carbon neutrality goal 2050.
Hamed al-Rafidain, a 39-year-old human resources worker, finds financial relief in his electric vehicle (EV), which contrasts his fuel-heavy four-wheel drive. Rafidain joins a growing group of EV users in Saudi Arabia, which is aiming to shift its economy from oil.
Despite being the world’s largest oil exporter, Saudi Arabia’s EV market remains modest compared to the United States and China. Yet, according to Al-Iqtisadiyah, it saw significant growth last year, tripling to nearly 800 cars.
“What drove me to buy an electric vehicle was financial considerations,” said Rafidain, who spends up to 2,000 riyals ($530) monthly on fuel for his off-road vehicle. He highlights the lower maintenance costs of EVs, noting no need for oil changes or brake-pad replacements, and appreciates the extra storage space under the hood.
Chinese EV manufacturer BYD plans to dominate the Saudi market, where Tesla lacks a dealership presence. In Riyadh, home to eight million residents and notorious for traffic-induced pollution, Rafidain emphasises the environmental benefits of EVs in reducing urban global warming.
For just over $53,300, Rafidain bought a BYD for short trips within the capital. However, he notes challenges like limited charging infrastructure and Saudi Arabia’s vast landscape, which restrict EV use to shorter journeys. Current EV batteries offer a range of about 400 kilometres (250 miles).
To address these issues, BYD and Lucid install home charging stations, while the Electric Vehicle Infrastructure Company (Eviq) aims to deploy 5,000 public charging stations nationwide by 2030. Despite the relatively low fuel cost in Saudi Arabia, EV prices remain high. A Lucid vehicle costs around $92,000, though BYD’s entry promises to make EVs more accessible.
Industry expert Hossam Iraqi points out that the smaller size and performance limitations of current EV models in extreme heat make them less attractive to large Saudi families. “Most current electric vehicle production falls into the small to medium-sized category, which does not suit the needs of large Saudi families,” Iraqi explains.
Salesman Hassan Mohammed anticipates robust EV sales this year, buoyed by increasing domestic and international demand. “More than one car brand has opened its doors in the kingdom and now offers after-sales service, which has encouraged consumers,” he says.
Saudi Arabia imported 779 EVs in 2023, a significant increase from 210 the previous year, according to Al-Iqtisadiyah. The kingdom also ramps up local production. The Public Investment Fund (PIF) now controls 60 per cent of Lucid and partners with South Korea’s Hyundai to establish a plant in Saudi Arabia for both EVs and petrol-powered cars. Additionally, the Saudi EV brand CEER plans to commence production in 2025.
Saudi Industry Minister Bandar al-Kharif aims for the country to produce 300,000 EVs annually, although he has not provided a specific timeline. As part of its carbon neutrality target for 2050, Riyadh negotiates with battery manufacturers.
For now, hybrids remain a popular choice. Omar el-Shami, a 43-year-old Egyptian pharmacist, opts for a hybrid vehicle for his wife. “The balance between electricity and gasoline is economical and convenient,” he says, charging the car. “Things may change in the future,” he adds.