Supply chain woes to delay global EV rollout by 20 years: industry experts issue warning

Supply chain woes to delay global EV rollout by 20 years: industry experts issue warning
The shortage of microchips amid rising demand for EVs has exacerbated the problems many manufacturers and suppliers have been facing since the pandemic hit in 2020. (Shutterstock)
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Updated 13 October 2022
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Supply chain woes to delay global EV rollout by 20 years: industry experts issue warning

Supply chain woes to delay global EV rollout by 20 years: industry experts issue warning

RIYADH: As supply chain challenges loom across all sectors of businesses, industry experts have warned these hurdles may impact the transition to electric vehicles despite a global drive towards a sustainable future.    

The shortage of microchips amid rising demand for EVs has exacerbated the problems many manufacturers and suppliers have been facing since the pandemic hit in 2020.  

This, coupled with the geopolitical tensions in Eastern Europe, is steering the EV business backward, as the industry demands more joint ventures to boost the refining of battery raw materials to ensure their availability. 

“Achieving global EV transition targets — set for 2030 in many countries — will be impacted as manufacturers struggle to source raw materials and keep up with rising demand,” said Majida Al-Azazi, chairwoman of Dubai-based M Glory Holding, which owns the first industrial facility in the UAE that manufactures EVs.

"We will achieve a lot by 2030. However, 2050 may be a more realistic target for a hundred percent transition," she added while speaking during a panel discussion at GITEX Global in Dubai on Oct.12, according to MEED.

Faisal Sultan, managing director of US-headquartered Lucid Motors — which is backed by Saudi Arabia’s Public Investment Fund, said the pandemic has highlighted the critical role of logistics for industries worldwide. 

Calling logistics the lifeline for any industry, Sultan said: “The lesson learned is that you need to localize. Not everything can be localized, but core competencies can be. The more you keep in-house, the more successful you are bound to be.” 

In August, Sultan told Bloomberg TV the PIF backed the firm when it faced a supply crunch which led to two production target cuts. 

“The PIF has been very supportive. When the world re-emerges from the pandemic and the supply chain catches up, we will be ready,” said Sultan. 

Earlier in October, Bloomberg reported that Australia-based lithium producer Pilbara Minerals is seizing on a current rush by automakers to secure future supplies of battery materials to ensure a sufficient supply of raw materials. 

“If you believe the supply-demand outlook, there’s going to be a shortage, and the car companies who haven’t secured the supply chain are going to have a problem,” said Dale Henderson, CEO of Pilbara Minerals. 

Rakesh Nair, managing director of Stellantis Middle East, a Netherlands-headquartered automaker, said that the challenge of keeping up with demand had been now exacerbated for EV manufacturers and their suppliers.

“When COVID-19 hit in 2020, it hit the brakes on virtually every supply point. But now, we don’t have the same speed to go back to where we were before,” he said, adding that demand is peaking, but manufacturers need time to bounce back as they recover their losses.

According to Nair, the shortage of microchips is affecting both EV manufacturers and traditional automakers. 

“We’re reducing the use of mechanical parts at a very high rate, and it is equally important to get the parts we need to our factories as quickly as possible,” Nair further noted. 

Apart from supply chain issues, the EV sector is also facing inconsistent regulations and charging infrastructure, along with reluctance among end-users, said Al-Azizi as reported by MEED. 

“Without the government’s support, manufacturers cannot succeed. Dubai and Abu Dhabi are doing a lot in this space, which helps tackle the infrastructure and awareness challenge,” she added. 

Earlier in June, during an exclusive interview with Arab News, Kalyana Sivagnanam, group CEO of Petromin, said that the company will open several EV charging stations across the Kingdom, as the company aims to kick-start confidence in customers’ minds.


Saudi Arabia to establish special desk to facilitate Pakistan’s IT firms’ registration

Saudi Arabia to establish special desk to facilitate Pakistan’s IT firms’ registration
Updated 02 October 2023
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Saudi Arabia to establish special desk to facilitate Pakistan’s IT firms’ registration

Saudi Arabia to establish special desk to facilitate Pakistan’s IT firms’ registration
  • Development coincides with signing of MoU to bolster cooperation in field of digital sciences

RIYADH: Saudi Arabia is set to create a dedicated desk to streamline the registration of Pakistani IT companies seeking to establish themselves in the Kingdom, announced Pakistan’s caretaker IT Minister Umar Saif on Sunday.

This development coincided with the signing of a memorandum of understanding in Riyadh between the two nations to bolster bilateral cooperation in information technology.

According to a statement by the Pakistan Embassy in Riyadh, the agreement focuses on accelerating digital transformation, fostering innovation and advancing digital infrastructure.

The MoU, signed by the Saudi Minister of Communication and Information Technology Abdullah Al-Swaha, stated that both countries will encourage small and medium-sized enterprises and startup ecosystems. 

They plan to collaborate on initiatives related to the transfer of businesses and the exchange of information on accelerators and incubators for emerging technology. 

On an official visit to the Kingdom, the Pakistani minister held meetings with several high-profile officials.

“We’re looking at opportunities for our startups to come here and raise investments from Saudi investors. These startups have raised over $800 million in just the last two years and are now at a point where they’re about to take off. I think each of these startups has the potential to become a billion-dollar company,” Saif told Arab News. 

He announced his “incredibly productive meeting” with Saudi Minister of Investment Khalid Al-Falih on social media platform X. “He (Al-Falih) has instructed (the Ministry of Investment) to establish a special desk for Pakistani IT companies to get registered in KSA (Kingdom of Saudi Arabia) and to grant (them) licenses to operate in KSA,” said Saif.

The Pakistani minister added: “I think there are huge opportunities for investment in Pakistan. We met with a lot of investors today (Sunday) and could meet with a few more with the PIF (Public Investment Fund) and STC to explore how they could come and be part of the telecom infrastructure, connectivity and payment systems in Pakistan.”  

Furthermore, Saif mentioned that the Saudi minister of communication tasked him with identifying the top 100 Pakistani talents globally — individuals potentially poised to win Nobel Prizes and establish billion-dollar companies.

“There is certainly a commitment to now forge these partnerships and relationships beyond the call of duty,” said the Pakistani minister.

Furthermore, he emphasized the significance of chip manufacturing, which involves producing semiconductor chips in various electronic devices. This area of interest is mutually vital for both countries.

“The Kingdom has put together a lot of resources and facilities for the fabrication of semiconductors. We can do it, but we don’t have the resources. However, we certainly have the technical expertise to collaborate on this,” he said.

The minister concluded the interview by highlighting Pakistan’s substantial lithium reserves, recognizing their potential for lithium-ion battery production, which could play a crucial role in future sustainable energy solutions.

“We don’t have the resources to put our facilities to convert our lithium reserves into lithium-ion batteries and products,” he commented, adding that this is “an area in which there could be deep collaboration between the two countries.” 

According to the embassy’s statement, the two nations will collaborate to explore how entrepreneurs and businesses can harness technology investments and venture capital. 

Their primary objective is strengthening their digital economy connections by assessing and certifying companies for collaborative opportunities within their information and communication technology markets.

Furthermore, the agreement will facilitate cooperation in e-governance, smart infrastructure, e-health, e-education and emerging technologies such as artificial intelligence, robotics and blockchain. 

Both countries will enhance their digital infrastructure, including fiber optic networks, data centers and cloud computing resources. 

The agreement also encourages engagement in each other’s international events and fosters information exchange between their public and private sector entities involved in IT development and electronics.


Number of Saudis in private sector rises 10.5% in Q2

Number of Saudis in private sector rises 10.5% in Q2
Updated 02 October 2023
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Number of Saudis in private sector rises 10.5% in Q2

Number of Saudis in private sector rises 10.5% in Q2

RIYADH: The number of Saudi nationals in the private sector rose 10.5 percent in the second quarter of 2023 to reach 2.2 million, a report by the National Labor Observatory showed.

It revealed an average quarterly growth of about 42,000 citizens in the private sector until the current year's second quarter.

The rise was attributed to a strong economic rebound that led to an increase in the workforce.

The report also reviewed industry changes and Saudization figures for jobs in private sector establishments based on different regions across the Kingdom.

It showed that the number of Saudi employees recorded the most significant increase for both genders, with males standing at 1.3 million, compared to about 900,000 females, bringing the total Saudization rate to 22.3 percent.

The Eastern Province took the lead, recording the highest Saudization rate of 27 percent, followed by Makkah at 24 percent and Riyadh and Madinah at 21 percent each.

The information and communications sector also achieved a strong participation rate for male citizens, reaching 60 percent, while education achieved the highest engagement of female citizens at 53 percent.

In May 2022, the Saudi Ministry of Human Resources and Social Development announced that it was focusing on a skills strategy to improve professional standards for workers and those entering the labor market, according to Abdullah Abuthnain, the vice minister.

Abuthnain noted that the initiative would benefit more than 200 professions, with councils establishing employment standards and on-the-job training programs in critical economic sectors.

“We, at HRDF, will work to develop and implement labor market policies by creating a sustainable national workforce, developing human cadres’ skills, providing them with knowledge and qualifications, and aligning them with labor market and job needs,” he said at the time.


Closing bell – Saudi Arabia’s main index edges down 0.3%

Closing bell – Saudi Arabia’s main index edges down 0.3%
Updated 02 October 2023
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Closing bell – Saudi Arabia’s main index edges down 0.3%

Closing bell – Saudi Arabia’s main index edges down 0.3%

RIYADH: Saudi Arabia’s benchmark index declined 0.3 percent to close at 11,005.94 on Monday recording a total trading turnover of SR5.2 billion ($1.4 billion).

The Tadawul All Share Index ended lower with 60 stocks making gains and 158 reporting losses. The MSCI Index also dipped 1.75 points to close at 1,413,37.

Nomu, the parallel market, ended the day on a positive note rising 0.41 percent and recording a trading volume of SR50.1 million.

Arabian Pipes Co. emerged as TASI’s best performer, as its share price surged 6.07 percent to close at SR90.90.

National Medical Care Co. and Leejam Sports Co. also posted significant gains, closing at SR133 and SR151.60, up by 5.89 percent and 4.99 percent respectively.

The National Company for Learning and Education and Red Sea International Co. also performed well.

Saudi Aramco Base Oil Co. closed as the day’s laggard, falling 4.56 percent to end at SR142.20.

Share prices of Al-Babtain Power and Telecommunication Co. and Bupa Arabia for Cooperative Insurance Co. also dipped to SR18.72 and SR200, falling by 4.20 percent and 4.12 percent, respectively.

On Nomu, Intelligent Oud Company for Trading emerged as the top-performing firm gaining 30 percent to conclude at SR63.70.

Alqemam for Computer Systems Co. also ended in the green rising 29.82 percent to finish at SR120.60. Paper Home Co., Mayar Holding Co., and National Building and Marketing Co. joined the gainers’ list, closing at SR 210.20, SR8.07, and SR257 after gains of 21.36 percent, 9.20 percent, and 6.20 percent, respectively.

On the announcement front, Intelligent Oud Company for Trading began listing its shares on Nomu at SR49 per share.

The company floated 325,000 shares, which represents 20 percent of its capital, to qualified investors. The offering was oversubscribed by 1,983.63 percent.

The initial public offering marked the 23rd listing on Nomu in 2023. The total number of listed companies on Nomu has now reached 67.


PIF-owned Cruise Saudi sets sail with tech investment in AROYA Cruises 

PIF-owned Cruise Saudi sets sail with tech investment in AROYA Cruises 
Updated 02 October 2023
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PIF-owned Cruise Saudi sets sail with tech investment in AROYA Cruises 

PIF-owned Cruise Saudi sets sail with tech investment in AROYA Cruises 

RIYADH: Public Investment Fund-owned Cruise Saudi has announced its investment into various tech organizations for its AROYA Cruises. 

In a press release, the company announced that the project has entered its inaugural phase of technology stack development, solidifying partnerships with globally renowned tech companies. 

These strategic collaborations, featuring Monitor Deloitte, Alibaba Cloud SA and theICEway as well as SourceToad, Otalio and Versonix Seaware, underscore Cruise Saudi’s commitment to providing passengers with a seamless journey from booking to boarding and beyond. 

Cruise Saudi’s IT and digitization team is leading the technology stack development, signaling their dedication to delivering a cutting-edge passenger experience. 

Leading the charge in project management and digital strategy is Monitor Deloitte, a global leader in strategy and consultancy. They will meticulously craft a data-driven digital strategy to ensure every technological decision is forward-looking and strategically aligned. 

Alibaba Cloud Saudi Arabia, a homegrown Saudi enterprise, will lay the digital foundation for AROYA Cruises, ensuring top-tier security, reliability, and swift digital interactions. 

Simultaneously, theICEway has been entrusted with the task of seamlessly integrating AROYA’s diverse technological domains into a cohesive digital ecosystem, guaranteeing a harmonious experience for both guests and crew members. 

Guests on AROYA Cruises will benefit from an array of features designed to enhance their experience. This digital hub will provide services such as an interactive ship map, daily itineraries, and reservations for shore excursions, dining, and spa treatments. 

Otalio’s Ship Property Management System is set to elevate the experience from cabin to deck, delivering curated experiences. 

On the other hand, Versonix Seaware, renowned for its expertise in cruise-focused Reservation and Revenue Management, will offer an intuitive booking experience. 

Cruise Saudi CEO Lars Clasen said: “We are proud to be working in collaboration with world-leading technology companies to integrate cutting-edge technology into the AROYA Cruises experience. Creating a seamless, modern and comfortable journey for our passengers really is at the heart of our offering, and investing in technology to enhance the cruising experience truly aligns with our future-forward ambitions for this cruise line.” 

Cruise Saudi welcomes cruise lines from around the globe to include Saudi as a port of call on their itineraries and add new destinations across the Kingdom that boast rich cultural heritage, history, and natural wonders. 

Cruise Saudi was officially launched in 2021 to develop the infrastructure and services required to scale a full-suite cruise market in Saudi.  

The company is responsible for the development and operation of cruise berths and terminals as cruise gateways to key Saudi destinations, as well as scaling cruise services, from marketing to Shorex design and coordination and ship operations. 


SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies
Updated 02 October 2023
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SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

RIYADH: As part of its commitment to minimize financing gaps for startups, Saudi Venture Capital Co. has invested SR112.5 million ($29.9 million) in IMPACT46 Fund III. 

According to a press release, the move is designed to empower late-stage companies in the region by investing in growth and pre-initial public offering phases.

A late-stage company is a business that has been in operation for a few years and has demonstrated viability. 

The release added that the trust will aim to allocate a specific amount for early-stage startups, focusing primarily on seed rounds in the broader Middle East. 

“The investment in IMPACT46’s Fund III falls under the company’s fund investment program, which aims to enhance the growth of the venture capital ecosystem for startups in the Kingdom across all stages and sectors,” said SVC CEO Nabeel Koshak in a statement. 

“This is in line with the growth witnessed by the venture capital sector in the Kingdom over the past years, making it a leader in venture capital in the Middle East and North Africa in the first half of 2023 in terms of invested amounts,” Koshak added. 

The Kingdom clinched the top spot in venture capital value for the first half of 2023, registering investments that surpassed $446 million, the highest in the MENA region. 

“We are delighted that SVC and IMPACT46 are once again joining forces, this time with our Fund III, which aims to support the growth of the tech startup ecosystem in Saudi Arabia. This partnership demonstrates our commitment to achieving our shared vision for driving a sustainable economic impact,” said IMPACT46 CEO and Founder Abdulaziz Al-Omran in the statement.

“This investment not only signifies the growing maturity of the VC activity in Saudi Arabia but also highlights the Kingdom’s potential to emerge as a frontrunner in this sector,” Al-Omran added. 

Founded in 2018, SVC operates under the umbrella of the SME Bank and the National Development Fund.  

SVC has channeled its resources and efforts toward empowering startups with an investment portfolio that boasts $2 billion. 

The company’s reach encompasses 43 investment funds and over 700 startups and small and medium enterprises, firmly positioning itself as a catalyst for entrepreneurial growth. 

Furthermore, IMPACT46 is a Saudi-based venture capital company that invests from seed-stage startups to more mature businesses.