Lucid marks green milestone as it opens first global facility in Jeddah

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Updated 29 September 2023
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Lucid marks green milestone as it opens first global facility in Jeddah

Lucid marks green milestone as it opens first global facility in Jeddah

JEDDAH: Lucid Group celebrated the official opening of its first international car manufacturing facility in Saudi Arabia on Wednesday. Situated in King Abdullah Economic City, the new facility is not only poised to serve the local market but also has its sights set on future exports. 

In an interview with Arab News, Faisal Sultan, vice president and managing director for Middle East at Lucid Group, noted that the facility’s opening marks the start of their production operations and positions them to fulfill their recently signed agreement with the Saudi government.

The agreement involves purchasing up to 100,000 vehicles over a decade, with an initial commitment of 50,000 vehicles and an option for an additional 50,000 over the same period. 

Speaking about why Lucid ventured into electric car manufacturing in a country with a strong oil-based economy, Sultan said that Saudi Arabia was chosen for its strategic location and the ongoing transformative changes taking place within the country. 

“With Vision 2030, Saudi Arabia is transforming from only oil dependency and going into industries, tourism, healthcare, IT, and AI. So, those things all resonate with our policy. We are also in the business of transforming the mode of transportation, the luxury aspects, and trying to get customers to contribute to our sustainability,” he said.   

Sultan added that sustainability is the core policy of Vision 2030. “That was the main reason, but the other reason is the strategic location of KAEC, being on the Red Sea, giving us the opportunity to manufacture cars here, not just for local markets, but in the future to export them out through the Red Sea,” he explained.   

Held at KAEC, the inauguration event had some high-profile participants including Minister of Investment Khalid Al-Falih, Minister of Industry and Mineral Resources Bandar Alkhorayef, and Governor of the Kingdom’s Public Investment Fund Yasir Al-Rumayyan, along with the US Ambassador to the Kingdom, Michael Alan Ratney, and Lucid Group leadership. 

Aligning with green initiative 

Al-Falih highlighted that Lucid Motors’ establishment aligns with Saudi Arabia’s Vision 2030, the Saudi Green Initiative, and the country’s commitment to sustainability and net-zero emissions.  

He noted the global shift towards electric vehicles, emphasizing the importance of preserving the environment. 

“Off all cars sold globally last year, EVs saw a 65 percent increase year on year, compared to a 7 percent decline for internal combustion engine cars. This rapid growth in EV sales is a testament to humanity’s dedication to preserving our planet and ensuring a safer, healthier future for generations to come,” Al-Falih said.   

Furthermore, he added, through the inauguration of this facility, Saudi Arabia sends a message to the world, affirming its commitment to fostering innovation, investing in groundbreaking technologies, and spearheading environmentally sustainable advancements. 

This commitment extends beyond KAEC to NEOM, home to the world’s largest green hydrogen project, and Red Sea Global, where the first off-grid, all-renewable energy system will power operations. 

“We are laying the foundation for a future that prioritizes environmental consciousness right here in our own land,” the minister further added.   

Meanwhile, Sultan recalled Saudi Arabia’s announcement of the SGI, aimed at ensuring that 30 percent of cars sold in the country are EVs, underlining the nation’s belief in the global necessity for such a shift. 

He observed that there is a significant global shift as consumers increasingly embrace electric vehicles.  

“I think for Saudi Arabia to take that bold step and to also start putting the infrastructure and the companies like Lucid being present within the country producing cars will definitely help achieve those goals for the country and also help us create the demand that is really needed to get the electric vehicles on the road,” he said.  

Sultan added that a greater presence of electric vehicles on the road would unquestionably lead to reduced emissions, cleaner air, and a healthier environment for future generations. 

Manufacturing hub 

Al-Falih affirmed that this step would position the Kingdom as a regional manufacturing hub for the broader green economy. He added that Lucid’s presence would serve as a nucleus, unlocking the value chain of the EV industry and giving rise to spin-off effects and additional investment opportunities.   

Lucid’s presence in Saudi Arabia is expected to generate over 4,000 direct jobs, potential exports exceeding $117 billion, and a gross domestic product impact of nearly $50 billion.  

The facility aims to promote homegrown Saudi talent and provide expert skill development training. The company also highlighted that, through an agreement with the Human Resources Development Fund, it anticipates employing hundreds of Saudi nationals in the initial years and ultimately expanding the workforce into the thousands. 

For his part, Alkhorayef said in his speech: “We are quite determined to a complete cluster that will help different downstream and upstream industries, downstream chemical, and metals. We are also resolved to allow Saudi Arabia to become a global player in EVs, batteries, and so on.”   

He added that they are working very closely with Lucid, Ceer, and PIF to ensure Saudi Arabia becomes a hub of innovation.   

The industry minister also underscored that the occasion signifies not only the establishment of the facility but also a demonstration of the genuinely favorable investment environment in Saudi Arabia. 

In his speech, Ratney stated: “This partnership will deliver the world’s most advanced electric vehicles to a global market. It will inspire increased adoption of electric vehicle technologies globally and contribute to the development of the Kingdom’s own human capital.” 

He also emphasized that the timing is perfect for such a partnership, noting, “In fact, Lucid estimates that the first manufacturing plant in Saudi Arabia could generate $3.4 billion in value over the next 15 years, aligning Saudi investment and talent with US engineering, R&D, and manufacturing.” 

Charging stations  

Saudi Arabia is also investing in building a robust charging infrastructure for electric vehicles, with Lucid providing technical knowledge and support for smart charging infrastructure. 

Sultan said that Lucid itself provides its customers with a charger for their home that can actually charge the vehicle within a few hours.   

“But it is only when you are traveling from one city, like Riyadh to Jeddah, you will need to have the public infrastructure charging. So, we want to make sure that our customers have that through the discussions that we have with the government entities and the private sector,” he explained.   

The Lucid executive revealed that they have plans to export outside Saudi Arabia once their facility is fully operational.   

He stated that their strategy had been to export vehicles from Saudi Arabia upon reaching full capacity at manufacturing plant AMP-2, aiming to assemble 150,000 mid-sized platform vehicles.

Sultan mentioned technological partnerships, such as the one with Aston Martin, as part of Lucid’s long-term vision for electric mobility in Saudi Arabia.   

“We will continue to look for deals like that. I think Lucid technology is something that is very far advanced than some of our competitors. And we want to make sure that this technology is used for the greater humankind’s betterment,” he said.  

Sultan added that their goal is to increase the production of EVs and contribute wherever possible, be it through their own vehicles or technology partnerships, to get more electric cars on the road. 

He concluded by stating that they have already assembled about 51 cars in the new facility and are “ready" for further production. Sultan noted that their current annual production capacity at the assembly plant is 5,000 vehicles, but this capacity will significantly increase once the full complex in Jeddah is completed, reaching a total of 155,000 vehicles. 


Qatar Airways launches NEOM Bay flight

Qatar Airways launches NEOM Bay flight
Updated 09 December 2023
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Qatar Airways launches NEOM Bay flight

Qatar Airways launches NEOM Bay flight
  • The NEOM Bay flight will be the 10th route by the airline to the Kingdom

Riyadh: Qatar Airways expanded services to Saudi Arabia with the launch of the Doha-NEOM Bay flight on Saturday.

The NEOM Bay flight will be the 10th route by the airline to the Kingdom.

Qatar Airways announced two weekly flights with Airbus A320 aircraft starting Dec. 9 from Hamad International Airport in Doha.

Saudi Arabia was ranked second globally in tourist arrivals during the first seven months of 2023, the Saudi Press Agency reported last month.

The Kingdom saw 58 percent growth in tourist numbers up to the end of July compared to the same period in 2019, according to the Ministry of Tourism.

The data was sourced last month from the UN World Tourism Organization and came from the UNWTO World Tourism Barometer.


Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

Startup Wrap – Saudi Arabia leads November’s funding spree with $338m
Updated 09 December 2023
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Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

Startup Wrap – Saudi Arabia leads November’s funding spree with $338m

CAIRO: Saudi Arabia’s startup ecosystem continues to dominate the region after raising the most funds in the Middle East and North Africa during November.

According to Wamda’s Monthly report, the MENA region saw $764 million raised across 42 rounds in November – a 390 percent month-on-month increase and a 74 percent growth year-on-year.

Saudi Arabia topped the charts with $338 million secured across nine deals. The UAE came in second with $284 million across 22 deals and Egypt followed with $130.5 million over 5 deals.

Omniful provides merchants with a unified management system, warehouse management system, and transport management system to scale their businesses.

Furthermore, the remaining capital was raised by startups based in Kuwait, Morocco, Oman, and Tunisia.

Funding activity experienced a notable resurgence across all stages, with mega rounds constituting a significant portion of the capital influx.  

Noteworthy among these rounds were a $250 million debt round secured by Saudi Arabia-based Tamara, a substantial $200 million series D funding by the Kingdom’s Tabby, and a $130 million raised by Egypt’s MNT-halan through securitized bonds.

Collectively, these three rounds made up around 76 percent of the total funding raised during November.

In the recent funding landscape, the fintech sector emerged as the frontrunner in terms of funding volume, raising $485.9 million, primarily driven by the significant rounds raised by Tamara and Tabby.  

FASTFACT

Noteworthy among these rounds were a $250 million debt round secured by Saudi Arabia-based Tamara, a substantial $200 million series D funding by the Kingdom’s Tabby, and $130 million raised by Egypt’s MNT-halan through securitized bonds.

This sector also ranked second in terms of the number of deals, recording nine in total. Furthermore, a notable boost to the super app sector’s funding status was recorded with the industry raising $131 million during the month, thanks to MNT-Halan‘s round.  

The education technology sector managed to secure $41.4 million in funding, largely due to a major transaction by Saudi Arabia-based Noon.

Additionally, several other sectors witnessed funding rounds reaching into the tens of millions.

Notable among these were Saudi-based Retailo’s $15 million, Saudi Ajras’ $28 million, UAE’s Flow48’s $25 million, and Emirati Immensa’s $20 million round.

Out of the 42 deals reported, 10 successfully attracted direct global investment, predominantly from US-based investors.  

Within the region, UAE-based investors took the lead, participating in 21 deals, with Modus Capital standing out through its investment of $2.8 million across eight startups via its venture builder program. Saudi Arabian investors followed closely, engaging in 10 deals.

In terms of founder gender dynamics, male-founded startups dominated the funding scene, securing $753 million across 29 deals, accounting for 98.5 percent of the total funding.  

In stark contrast, female founders received less than 2 percent of the overall capital, amounting to $9 million. Mixed-gender founding teams raised the remaining 0.2 percent.

Mtor’s founder and CEO, Mohamed Maged, established the startup in April 2022. (Supplied)

The report indicated that nine startups did not disclose their exact funding amounts. A conservative estimate of $100,000 was assigned to each of these ventures.

These were NOWmoney, Awfar, and Lynk, as well as Lath, Chari, Wayup Sport, and Winshot, Akhdar, and Farcana.

Supply chain and ecommerce enabler Omniful raises $5.85m to boost regional operations

Supply chain and ecommerce enabler startup Omniful, co-headquartered in Saudi Arabia and the UAE, has raised $5.85 million in a seed funding round.

Led by VentureSouq, the round saw participation from 500 Global, DASH Ventures, Jahez Group, as well as SEEDRA Ventures, Bunat Ventures, Hala Ventures, and RZM Investments, along with family offices including Al Rasheed, Siraj Holding, Al Bawardi, Al Nafea, and a number of angel investors.

Founded in 2022 by Mostafa Abolnasr and Alankrit Nishad, Omniful provides merchants and fulfillment providers with a unified management system, warehouse management system, and transport management system to scale their businesses.

Mostafa Abolnasr, Omniful cofounder and CEO

Abolnasr, also the company’s CEO, said: “The future of commerce is hyperlocal and omnichannel, with consumers expecting brands to be closer to them, to deliver faster and offer a personalized experience. At Omniful, we are equipping merchants in this $4 trillion industry with a single platform to manage all their sales channels and deliver on time and in full, improving their efficiencies by 40 percent and their customer retention by 15 percent.”

He added: “Our seed round marks a major milestone, and together with our investors, we are excited about going out of stealth and launching our sales and marketing efforts in the Middle East, Africa, and India, followed by Europe and US.”

The future of commerce is hyperlocal and omnichannel, with consumers expecting brands to be closer to them, to deliver faster and offer a personalized experience.

Mostafa Abolnasr, Omniful cofounder and CEO

The company aims to utilize its fresh influx of capital to boost its operations in existing markets, primarily the UAE and the Kingdom, as well as double down on its technology development.

Nishad, the company’s chief technology officer, said: “As a product-led organization, our technology is a clear differentiator, making us the platform of choice for omnichannel merchants and high-volume 3PL (third party logistics) fulfillment providers. Over the next year, we will double down on growing our technology capabilities in India, while also planning for the launch of our platform there.”

Egypt’s Mtor closes $2.8m in a pre-seed round

Egypt’s online car parts marketplace Mtor has closed a $2.8 million pre-seed funding round led by Algebra Ventures with participation from Dutch Founders Fund, Aditum Ventures, LoftyInc Capital Management, and angel investors.

Founded in 2022 by Mohamed Maged, Moaz El-Megharbel, Mohamed Altaf, and Khaled Kandil, Mtor aims to revamp the car parts industry in Egypt with a unified online platform.

“It can be a car owner’s nightmare to get their car serviced. Mtor was founded to fundamentally transform this reality and make the process easier and more efficient, empowering a layer of local car workshops that are well rounded with quality parts, a suitable price position, and a good customer experience,” Maged, CEO of Mtor, said.

The company aims to utilize the received funding to further grow its product range and expand its local workshop client-base.

 


Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth

Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth
Updated 08 December 2023
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Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth

Pakistan’s central bank releases ‘regulatory sandbox’ guidelines, seeks input for FinTech growth
  • The emergence of high-tech companies for efficient service delivery has posed regulatory challenges for Pakistan
  • The regulatory sandbox approach has also been adopted by other countries to develop final set of rules for startups

ISLAMABAD: The State Bank of Pakistan (SBP) adopted a collaborative approach to developing a regulatory framework for startups and FinTech companies by issuing preliminary guidelines on Friday with an aim to test them against innovative products and business models before adopting the final set of rules.

The SBP’s “regulatory sandbox” approach is designed to provide a controlled environment for innovators to test their products and technologies, making it easier for the regulator to understand their implications for financial stability and consumer protection.

“State Bank of Pakistan has issued draft guidelines on regulatory sandbox for public consultation,” it said in a brief statement.

The SBP added this would allow the regulated entities, such as startups and FinTech firms, to participate in the process of testing new products and their preferred business models within the provided legal framework.

“As envisioned in SBP Vision 2028, the regulatory sandbox will encourage innovation in digital financial services and facilitate the existing and new market participants to build robust digital payments ecosystem in Pakistan,” the central bank explained in its statement.

“Similarly, it will help SBP to issue instructions and regulations for new and innovative FinTech solutions, ultimately resulting in increased financial and digital inclusion in the country,” it added.

The SBP said its initiative would strengthen its engagement with stakeholders in shaping the future of the country’s financial industry.

It invited banks, FinTech firms, industry experts, public and all interested parties to participate in the consultation process.

Pakistani startups, especially in fintech, e-commerce and logistics, have been attracting considerable investment from both domestic sources and international venture capital firms.

This burgeoning ecosystem, fueled by significant government support and a surge in digital adoption among a young, tech-savvy population, is said to be positioning the country as an emerging hub for technological innovation and entrepreneurship.

As the country increasingly depends on high-tech companies for efficient service delivery, it has been encountering various regulatory challenges.

The regulatory sandboxes approach has also been adopted by other countries, including the United Kingdom, Singapore, Australia and Canada etc., among many others.

Each country’s sandbox is tailored to its specific regulatory environment and financial sector needs, though the core idea is to provide a space where new and potentially disruptive financial technologies can be tested safely and without immediately incurring the full burden of financial regulation.


Pakistan stock market crosses another historic milestone by surging past 66,000 points

Pakistan stock market crosses another historic milestone by surging past 66,000 points
Updated 08 December 2023
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Pakistan stock market crosses another historic milestone by surging past 66,000 points

Pakistan stock market crosses another historic milestone by surging past 66,000 points
  • Analysts say the current bull run at the stock market is fueled by IMF program and policy measures for economic improvement
  • An economic expert asks the government to comply with the IMF standby arrangement to ensure macroeconomic stability

KARACHI: Pakistan equities on Friday hit yet another record high by breaching the 66,000-mark amid bullish sentiments built on the International Monetary Fund (IMF) program and completion of its first review, rupee stability, and the government’s plan to raise Rs90 billion through Islamic bonds, equity analysts said.
The key stock index, KSE100, closed the weekend trading session at a historic high level of 66,223 after gaining 1,505 points, or rising 2.33 percent. During the trading week, the index collectively gained 3,730 points. The recent rally has increased the market capitalization from $31.3 billion to $32.8 billion in a week.
“The stocks closed at a new record surge and new all-time high amid rupee stability and the government’s plan to launch Rs90 billion worth of Ijarah Sukuks for retail investors to diversify funding sources,” Ahsan Mehanti, CEO of Arif Habib Corporation, told Arab News.
He attributed the bull run to falling external debt, the positive outcome of the Special Investment Facilitation Council (SIFC), a civil-military hybrid forum established to fast-track decision-making and promote investment from foreign nations, and expectations for a current account surplus in November 2023.
In a landmark development for the country’s financial markets, the federal government launched one-year Ijarah Sukuk earlier in the day from the platform of Pakistan Stock Exchange (PSX) in the first phase.
In total, the government plans to raise Rs90 billion through three auctions of the bond.
Speaking at the gong ceremony, Prime Minister Anwaar-ul-Haq Kakar said Pakistan’s economy faced multiple challenges at the start of the financial year 2023-2024, but the government had tried to solve the structural and macroeconomic issues which helped improve the situation.
“I would like to thank the effort of all stakeholders to bring our economy back on track by lowering the exchange rate of dollar from all-time high of approximately 307 on September 5, 2023, in the interbank market to around 284 today,” he said.
Kakar maintained the capital market served as a catalyst for innovation, entrepreneurship and growth in the realm of finance.
“It provides fuel to business to expend, create jobs and contribute to overall development of society. As a part of federal government, we are committed to fostering an environment that nurtures and sustains this growth,” he added.
The prime minister said the capital market acted as a stabilizing force, absorbing shocks and steering the economy toward stability.
Economists say the current bull run is fueled by the successful completion of $3 billion IMF bailout program review, strong earnings growth and the steps taken by the government to discourage smuggling of various commodities and foreign currencies.
Pakistan expects another tranche of $700 million from IMF after the global lender’s board meeting on January 11, 2024.
“Pakistan stock exchange has tailwind of the IMF program, the completion of the first review, the enforcement measures by the establishment including curbing smuggling, de-dollarization and some improvements in the Afghan transit trade,” Dr. Khaqan Najeeb, former advisor to the finance ministry, told Arab News.
Going forward, he said the country would have to comply with the IMF standby arrangement to design another program for long term macroeconomic stability.
He noted this required more structural reforms in the economy after the new government takes over in the wake of the next general elections.


COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn
Updated 08 December 2023
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COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn

DUBAI: Funding for a joint effort by the US and the UAE to advance climate-friendly farming around the world has grown to more than $17 billion, the countries announced on Friday at the COP28 climate summit in Dubai, according to Reuters.

The Agriculture Innovation Mission for Climate was launched in 2021 at COP26 in Glasgow and its funding comes from governments, companies, and non-governmental organizations.

Globally, food and farming contribute about a third of anthropogenic greenhouse gas emissions, according to the UN’s Food and Agriculture Organization.

Nearly 80 projects have been announced under the AIM for Climate initiative since 2021, with goals to expand agricultural research, implement sustainable farming practices, and reduce methane emissions.

“I think it’s made people think about food and agriculture in a much different way,” Agriculture Secretary Tom Vilsack told Reuters on the sidelines of the conference, adding: “And I think it’s reflected, frankly, in the fact that this COP ... has actually elevated food (and) agriculture to the point where it’s an integral part of COP meetings. That has not been the case for the previous 27.”

Funding for the effort has grown from $13 billion in May, when the US and the UAE co-hosted an AIM for Climate summit in Washington, and from $8 billion at COP27.

The new total includes $12 billion from governments and $5 billion from non-government parties such as companies and humanitarian organizations, said an AIM for Climate spokesperson.

The 27 new projects announced at COP28 range in size from $500 million to $150,000.

In one of the largest projects, companies including Bunge and Alphabet’s Google are working with the Nature Conservancy and the Brazilian state of Para to expand regenerative agriculture, which generally refers to practices like reduced tillage of cropland and lower pesticide use.

For the first time, agriculture is a major focus at this year’s climate summit, with a full day on Dec. 10 dedicated to food and farming topics.

“We understand that we need to speed up innovations ... to be able to transform agriculture food systems to more sustainable systems,” the UAE’s Minister for Climate and the Environment Mariam Almheiri told Reuters.

Advocacy groups want the nations and companies in attendance to pledge to tackle agricultural methane emissions in particular, most of which is from livestock production.