meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region on the cusp of EV production boom

2 August 2024

 

Energy and economic diversification programmes, not to mention ambitious industrialisation plans, have spurred investments in domestic battery electric vehicle (EV) manufacturing and assembly.

As of July, in Saudi Arabia and the UAE there were at least seven projects related to the construction of EV manufacturing and assembly plants, and two schemes for facilities that will assemble or manufacture hydrogen-powered vehicles. These projects have a total combined capacity of close to 400,000 vehicles annually.

Those setting up their manufacturing and assembly lines in the Gulf states plan to produce EVs for domestic as well as export markets, mainly in Africa.

Each manufacturer targets a defined segment of the evolving market, from entry-level to high-end passenger vehicles and electric trucks.

Saudi sovereign wealth vehicle, the Public Investment Fund (PIF), is a partner and investor in three of these brands: US-headquartered Lucid Motors, Saudi Arabia's Ceer and South Korea’s Hyundai.

Construction work is under way for the SR5bn ($1.3bn) first phase of Ceer’s 170,000 vehicles-a-year production plant in King Abdullah Economic City (KAEC) in Jeddah.

Ceer is a joint venture of the PIF and Taiwan-based Hon Hai Precision Industry Company, which is also known as Foxconn.

Lucid Motors aims to capture the high-end market and is also building its first assembly plant in KAEC, targeting a production capacity of 5,000 cars a year. This will be expanded to 150,000 from 2025 to support the kingdom’s goal of producing 500,000 EVs, and for EVs to account for 30% of new car sales in Saudi Arabia, by 2030.

“We will be expanding rapidly into the other GCC states as well,” a Riyadh-based executive with the California-based EV startup tells MEED.

He says constant and rapid innovation, particularly in terms of battery and charging technologies, will likely provide the tipping point for many consumers to shift from internal combustion engine (ICE) vehicles to EVs.

“Our fast charger today requires no more than 12-13 minutes to get you 300 kilometres. This means you may need to charge your car only once a week for city driving.

“The Lucid Air Sapphire is also one of the most powerful sedans in production today, capable of hitting 100 kilometres an hour in around 2 seconds,” he adds.

In search of lithium

Today’s EVs run on lithium-ion batteries, and Australia, Chile and China dominate global lithium production. As such, securing a global supply chain for locally manufactured EVs has become a top priority for Saudi Arabia.

The kingdom’s Industry & Mineral Resources Minister Bandar Al-Khorayef travelled to the Chilean capital of Santiago in late July to meet with several ministers of the world’s second-largest lithium producer to discuss ways to bolster cooperation in the industrial and mining sectors and lithium production.

Alkhorayef also met with Ruben Alvarado, the chief executive of Chile’s main copper producer, Codelco, to discuss investment opportunities in mineral production, particularly lithium and copper.

According to industry experts, the potential deals that Alkhorayef planned to secure might not necessarily involve importing lithium from Chile to Saudi Arabia. Rather, they could pertain to Saudi Arabia wanting to establish an integrated vertical supply chain for industries that it plans to build that require the mineral.

Notably, Saudi Arabia is also exploring domestic lithium production.

Saudi Arabian Mining Company (Maaden) has undertaken a pilot project that successfully extracted lithium from seawater, although not at commercially viable levels.

In July, Maaden signed an agreement with US-based Ivanhoe Electric to explore the Arabian Shield zone in Saudi Arabia – which is approximately the size of Switzerland – for high-demand minerals, including lithium.

Australia-headquartered EV Metals Group has also announced the completion of an initial exploration programme at the Balthaga lithium project in Saudi Arabia. The project is located 450 kilometres east of Jeddah in the south-east of the Arabian Shield. 

Demand drivers

In addition to clear regulations, factors such as price competitiveness, a wider variety of EV models and innovative ownership models will be crucial in driving demand across the region, according to experts.

A study by global consultancy PwC suggests that there are just 56 EV models available in the UAE in 2024. This is equivalent to 7% of the total, with 731 ICE and hybrid models accounting for the rest.

This is in contrast to the trend in Europe, where there are 264 EV car models comprising 26% of the total. This ratio is expected to nearly triple to 71% by 2030.

“Consumers want what they want, not just what’s available,” says a senior business development executive with a UAE-based car distributor. “The younger consumers also do not want to own cars, they prefer a subscription model, so we need to cater to these requirements.”

Manufacturers and their local partners appear to be heeding these sentiments. Distributors in the UAE for leading brands including Tesla and BYD have launched car lease programmes, which allow consumers to make monthly payments over a fixed period, at the end of which they return the EV to the supplier.

This scheme suits consumers that want to upgrade their cars every few years and prefer the convenience of separate insurance and maintenance bills.

Major investments in local EV production, such as those being made in Saudi Arabia and the UAE, can also help to guarantee a greater variety of car models that are designed to cater to local preferences, weather and purchasing power.

 GCC ponders electric future

https://image.digitalinsightresearch.in/uploads/NewsArticle/12261174/main5816.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc weighs early engagement for Umm Shaif expansion

    21 October 2026

     

    Adnoc Offshore, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), is considering an early engagement exercise with contractors for a major project covering the next expansion phase of the Umm Shaif oil and gas field offshore Abu Dhabi.

    The early engagement round with contractors will precede Adnoc Offshore issuing the main tender for engineering, procurement and construction (EPC) works on the Umm Shaif long-term development plan 2.1 (LTDP-2.1) project, according to sources.

    MEED previously reported that Adnoc Offshore completed the expression-of-interest exercise with contractors for the two main EPC packages of the Umm Shaif LTDP-2.1 project in June this year.

    The project’s primary objective is to maintain Umm Shaif’s oil production capacity at approximately 390,000 barrels a day (b/d), while enabling peak output of up to 430,000 b/d.

    The project includes the construction of a new combined artificial island at Umm Shaif, equipped with drilling, processing, utilities and supporting infrastructure. It also encompasses the installation of an optimised crude-stabilisation train at Adnoc’s existing Das Island facilities.

    Located about 150 kilometres northwest of Abu Dhabi city, Umm Shaif is one of Adnoc’s oldest offshore oil-producing assets. In 2022, the company marked the 60th anniversary of the UAE’s first export of Umm Shaif crude, which took place in July 1962.

    Umm Shaif sits within Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, which was previously operated by former Adnoc Group companies Adma-Opco and Zadco.

    Between March and April 2018, Adnoc awarded a 10% stake in the Umm Shaif and Nasr offshore block to Italy’s Eni, 20% to France’s TotalEnergies and 10% to China National Petroleum Corporation. Adnoc retained the majority 60% interest.

    The operators produce about 460,000 b/d of oil from the Umm Shaif and Nasr block.

    Project scope of work

    Adnoc Offshore has divided the EPC scope of work on the Umm Shaif LTDP-2.1 project into two packages.

    The offshore package covers the construction of three water-injection wellhead towers, an electrical submersible pump wellhead tower, a riser platform, a manifold tower, two flare towers, offshore bridges and supporting bridge structures. Additional offshore works include the installation of well fluid flowlines, a main oil pipeline, water injection pipelines, gas export lines and subsea cable systems.

    The onshore package covers the construction of facilities on Umm Shaif Island, including a three-phase separation system comprising two processing trains, each capable of handling 135,000 b/d. The facilities will also include two associated-gas compression trains and gas dehydration units, each rated at 275 million cubic feet a day. Supporting infrastructure includes produced-water treatment systems, water-injection facilities, utilities, process buildings and associated tie-in works.

    Australia-headquartered Worley has performed front-end engineering and design (feed) work on the Umm Shaif LTDP-2.1 project.

    Output expansion projects

    In January 2022, Adnoc Offshore awarded a $946m contract to Abu Dhabi-based NMDC Energy (then known as National Petroleum Construction Company) to carry out EPC works on the first phase of the long-term development plan to sustain output from Umm Shaif, known as the Umm Shaif LTDP-1 project.

    The main objectives of the Umm Shaif LTDP-1 project are to maintain Umm Shaif’s 275,000 b/d crude oil production capacity, increase efficiencies and enhance the field’s long-term output potential.

    EPC works on the first phase of the Umm Shaif LTDP programme were completed in 2024, according to information obtained by regional projects tracker MEED Projects.

    Adnoc Offshore then initiated work on the second expansion phase of the long-term development plan for the Umm Shaif offshore oil field in Abu Dhabi (Umm Shaif LTDP-2), awarding US-headquartered McDermott International the main EPC contract on the project in 2024.

    The value of the contract for the Umm Shaif LTDP-2 project, which is also known as the Umm Shaif accelerated development, is understood to be $2bn. McDermott held a steel-cutting ceremony for the project on 25 May last year at its fabrication yard in Jebel Ali, Dubai.

    The core objective of the project is to increase the Umm Shaif oil field’s output from about 275,000 b/d at present to 390,000 b/d by 2027, and to sustain that level of production until at least 2036.

    ALSO READ: Adnoc announces FID on $6.2bn Umm Shaif gas cap project
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20779525/main4001.jpg
    Indrajit Sen
  • QatarEnergy and local partner win seven Brazil offshore blocks

    20 October 2026

    QatarEnergy, in a consortium with Brazil’s state energy producer, Petrobras, has won seven offshore exploration blocks in a concession licensing round organised by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP).

    The exploration blocks ANP awarded in the 6th concession open-acreage bid round are CE-M-471, CE-M-473, CE-M-475, CE-M-477, CE-M-537, CE-M-539 and CE-M-665. The blocks are located in the Ceara Basin along Brazil’s northeastern Equatorial Margin.

    QatarEnergy will hold a 30% participating interest, with Petrobras holding the majority 70% stake.

    The Equatorial Margin blocks cover about 4,700 square kilometres (sq km) and lie in water depths of about 2,000-3,600 metres.

    “The concession contracts further strengthen and expand QatarEnergy’s upstream position in Brazil and are expected to be signed in the first half of 2027,” the state energy enterprise said in a statement.

    QatarEnergy already holds working interests in producing fields and several exploration blocks in Brazil.

    Prior to winning a stake in these seven offshore exploration blocks, QatarEnergy secured a 20% equity interest in the Agua-Marinha production-sharing contract (PSC) awarded by ANP, under Brazil’s 1st cycle permanent offer round in 2023.

    Under the terms of the PSC and associated agreements, the remaining stakes in the Agua-Marinha concession are held by the operator Petrobras (30%), France’s TotalEnergies (30%) and the Brazilian subsidiary of Malaysia’s Petronas, Petroleo Brasil (20%).

    The Agua-Marinha block covers 1,300 sq km. It is located in water depths of about 2,000 metres off the coast of Rio de Janeiro in the prolific Campos Basin.

    In November 2022, QatarEnergy announced a discovery in Brazil’s Sepia offshore oil field, in which it holds a 21% interest. The announcement came less than a year after it acquired the stake.

    ALSO READ: QatarEnergy acquires stakes in Angola offshore blocks
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20779233/main.jpg
    Indrajit Sen
  • UAE firm wins Sphere Abu Dhabi LED display contract

    20 October 2026

    UAE-based audiovisual and digital signage contractor Blue Rhine Industries (BRI) has been appointed to install and commission the external LED display for the Sphere Abu Dhabi project on Yas Island.

    The firm was awarded the subcontract by the scheme’s main contractor, Alec Engineering & Contracting, a subsidiary of the UAE-based Alec Holdings. 

    The scope covers the installation of the external light-emitting diode (LED) display, known as the Exosphere, across the facade of the 112-metre-high building. 

    The award forms part of the main construction contract for the estimated $1.7bn entertainment venue, which is scheduled for completion in the third quarter of 2029.

    In May, Alec Holdings confirmed that Alec Engineering & Contracting had received the letter of award for the main construction package.

    MEED previously reported that Alec was the selected contractor and had carried out pre-construction work on the scheme.

    The project is being developed by Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) in partnership with the US-based Sphere Entertainment. The parties finalised an agreement granting DCT Abu Dhabi the exclusive rights to build and operate the entertainment venue in the UAE capital, marking the first Sphere development outside the US.

    The venue is located on a plot between Yas Mall and SeaWorld Abu Dhabi.

    Designed to mirror the scale of the original Sphere in Las Vegas, the facility will have a capacity of up to 20,000 people and will host concerts, sporting events, and cultural exhibitions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20776687/main.jpg
    Yasir Iqbal
  • Eni completes $1bn Libya gas project

    20 October 2026

    Register for MEED’s 14-day trial access 

    Libya’s Mellitah Oil & Gas Company, a joint venture of Libya’s National Oil Corporation (NOC) and Italian oil and gas company Eni, has achieved mechanical completion on its Bouri gas utilisation project (GUP).

    In a statement, Eni said that start-up procedures are currently under way, enabling the recovery of associated gas produced from the Bouri field, which is located in Libya’s western offshore area.

    The main contract for the project, worth $1bn, was awarded to Italy’s Saipem in August 2023.

    The project involved the construction and installation of the new Bouri gas recovery module and related tie-in infrastructure that enables the recovery and treatment of gas that was previously flared.

    In its statement, Eni said that the project “represents one of the most significant emissions reduction initiatives in Libya’s energy sector”.

    It also said that it would contribute to improving the environmental performance of the country’s production system by reducing greenhouse gas emissions by approximately 1.5 million tonnes of carbon dioxide a year.

    The recovered gas will be supplied to the domestic market, adding about 700 million cubic metres a year and helping meet demand from the power generation sector.

    The project will also support additional gas volumes available for export to Europe through the GreenStream pipeline.

    Eni said: “The start-up of the Bouri GUP confirms the joint commitment of Eni and NOC to the development of Libya’s energy sector through initiatives that combine production growth, operational efficiency and environmental stewardship.

    “The project is part of a broader strategy aimed at enhancing the value of the country’s gas resources while reducing the emissions intensity of upstream activities.”

    Other key projects currently under way in Libya include the A&E Structures Project, which is focused on bringing new offshore gas resources onstream for both the domestic market and exports, as well as initiatives aimed at upgrading and optimising gas production and transportation infrastructures.

    Eni has been present in Libya since 1959, and the company’s equity production in the country in 2025 amounted to approximately 162,000 barrels of oil equivalent a day.

    The Bouri offshore field is part of Libya’s Block NC-41, located 120 kilometres north of the Libyan coast in the Mediterranean Sea.

    It was first discovered in 1976 at a depth of 8,700 feet. It is estimated to contain 4.5 billion barrels in proven recoverable crude oil reserves and 3.5 trillion cubic feet of associated natural gas, with an annual production potential of 6 billion cubic metres.

    The first development phase, costing nearly $2bn, was completed in 1990.

    This was immediately followed by a second development phase, which entailed drilling 55 new wells and constructing three additional platforms. Production began from the oil platforms DP4 and DP3 in August 1998.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20770288/main3529.jpg
    Wil Crisp
  • Diriyah Company tenders East Wadi bridge

    20 October 2026

     

    Saudi Arabia’s Diriyah Company has invited contractors to bid on the construction of the DG II East Wadi Bridge, a key crossing within Riyadh’s Diriyah master development.  

    The bridge will provide an arterial road connection linking the Diriyah Gate Phase 2 (DG II) Infrastructure Package 1 and Package 2 zones.  

    The project scope involves the construction of a 100-metre clear-span, 44-metre-wide, single-span post-tensioned concrete bridge structure with integrated abutments and four architectural towers.  

    The contract also encompasses approach slabs, access roads, pavements, associated earthworks, architectural finishes and cladding, mechanical, electrical and plumbing installations, utility interfaces, bridge parapets, vehicle restraint systems, waterproofing, testing and commissioning, and associated temporary works.  

    The client will supply the detailed engineering design, and the selected contractor will develop the construction methodology.

    Diriyah Company issued the prequalification tender on 14 September, with submissions due by 10 December.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20769223/main.png
    Yasir Iqbal