Saudi Arabia’s Public Investment Fund has launched a new company to boost electric vehicle manufacturing in the kingdom and develop local supply chain capabilities for the automotive and mobility industry.
The new firm – National Automotive and Mobility Investment Company, or Tasaru Mobility Investments – aims to drive strategic investment and partnerships with local and global private companies, PIF said in a statement.
Tasaru intends to localise manufacturing and technology to accelerate the development of the kingdom’s EV and autonomous mobility ecosystem, it added.
“The establishment of the company demonstrates PIF’s commitments to diversify the economy, improve sustainability and localise technology and sector-specific knowledge,” said Omar Al-Madhi, co-head of Middle East and North Africa direct investments at PIF and chairman of Tasaru.
The new company will also support research and development, adoption of advanced technology and pursue sustainable opportunities in the automotive sector.
Its first investment is a joint venture with Zamil Group Real Estate Company, Abdullah Ibrahim Alkhorayef Sons Company and Dar Al-Himmah Projects Company Ltd to develop an automotive logistics hub in King Abdullah Economic City, PIF said.
Tasaru will be a majority shareholder in the new venture.
Saudi Arabia, Opec’s top oil producer and the world’s biggest crude exporter, has set ambitious targets to tackle climate change and cut carbon emissions to overhaul its economy and reduce its reliance on oil.
The country has set a target of achieving net-zero carbon emissions by 2060.
By accelerating the transition to EVs and future mobility solutions, Tasaru will drive the country’s environmental objectives, including its net-zero 2060 target, as well as PIF’s own net-zero 2050 target.
The global EV industry is growing amid a government and societal shift towards energy conservation and sustainable transport.
The worldwide EV market is projected to grow more than threefold to about $1.6 trillion by 2030, from an estimated $500 billion in 2023, according to data from Fortune Business Insights.
Saudi Arabia, the Arab world's largest economy, is also focusing heavily on building its domestic EV market to support the transition and develop its local manufacturing sector as part of its Vision 2030 strategy to diversify its economy away from oil.
On Monday, PIF and Saudi Electricity Company announced a new EV infrastructure company that plans to set up 5,000 fast chargers across the country by 2030.
In November last year, the PIF launched the kingdom's first electric vehicle brand, Ceer, which aims to attract more than $150 million in foreign direct investment and create up to 30,000 direct and indirect jobs.
The PIF, which is at the centre of the kingdom's diversification strategy, has established 89 companies since 2017.
The fund is focused on 13 strategic sectors and is mandated to pump $40 billion to $50 billion into the local economy annually to generate jobs and grow the non-oil economic base of the country.