Saudi Arabia’s ambitious push towards electrifying its transportation sector is gaining significant momentum with the entry of Al-Futtaim Electric Mobility Co. The company aims to create over 1,000 local jobs and equip the Kingdom’s youth with essential skills for the electric vehicle (EV) industry.
Local Investment in EV Training
During the Jeddah International Motor Show, Managing Director Hasan Nergiz emphasized the importance of local training for aspiring professionals in the electric vehicle sector.
Nergiz outlined that the training will encompass various roles, including sales personnel, technicians, and after-sales support, all specifically tailored for EVs. To support this effort, Al-Futtaim plans to establish its first technical center in Riyadh, equipped with advanced simulators for hands-on training.
Expanding Market Presence
Having operated in Saudi Arabia for over 15 years with a focus on construction equipment and commercial vehicles, Al-Futtaim Group is now venturing into the passenger car market, driven by the promising opportunity presented by BYD electric vehicles. Nergiz highlighted that Saudi Arabia and the UAE represent nearly 80% of the Gulf Cooperation Council’s automotive market, making a strong presence in these nations crucial for capturing regional opportunities.
Aligning with Vision 2030
Nergiz expressed confidence in Saudi Arabia’s Vision 2030 objectives, particularly the ambitious goal of converting 30% of vehicles in Riyadh to electric by 2030. This commitment to an electric future aligns with the company’s strategy to facilitate EV adoption among consumers.
Addressing the challenges of charging infrastructure—often cited as a barrier to EV adoption—Nergiz noted that their approach involves forming partnerships with local firms to enhance access. “Many private and government-sponsored companies are investing significantly in building charging infrastructure, and these partnerships are essential for encouraging EV utilization,” he said.
During the EV Auto Show 2024, Al-Futtaim signed its first memorandum of understanding with Turning Point, a charging solutions provider, and is close to finalizing another agreement with one of the largest charging companies in the country.
Collaborative Approach to Charging Infrastructure
Nergiz emphasized that a cooperative approach to charging infrastructure is vital for growth. “We do not view charging as a competitive endeavor. If everyone vies for a limited market share, the entire sector suffers,” he stated. The focus should be on ensuring widespread availability of charging points at homes, workplaces, and major highways.
Future Prospects and Current Realities
In assessing the competitive landscape, Nergiz presented a balanced perspective that recognizes the potential of EVs while acknowledging present limitations. While the long-term outlook for electric vehicles in Saudi Arabia is promising, bolstered by government support, he noted that the technology remains relatively new and the infrastructure still developing.
Overall, Al-Futtaim Electric Mobility Co.’s entry into the market represents a significant step towards realizing Saudi Arabia’s vision for a sustainable electric future, promising job creation, local expertise, and enhanced infrastructure. As the Kingdom progresses towards its ambitious goals, the partnership-driven approach will be crucial for fostering a thriving electric vehicle ecosystem.
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