- WAJA Co. and Arab Organization for Industrialization establish an EV joint venture in Egypt, capitalizing on the growing market.
- Saudi Arabia targets 30% electric vehicles in Riyadh by 2030, part of a broader emissions reduction strategy.
- Middle East and Africa’s automotive EV market to reach $3.33 billion by 2024, with 23.2% CAGR from 2024 to 2029, driven by supportive policies.
- Lucid Middle East anticipates significant expansion in the regional EV industry, addressing barriers to ownership.
WAJA Co., a Saudi multi-sector firm, has recently signed a framework cooperation agreement with the Egypt-based military organization Arab Organization for Industrialization to establish a joint venture in Egypt. The aim is to produce and manufacture electric vehicles (EVs) to meet both the local market demands and for export purposes.
This move comes at a time when Egypt is showing significant potential for the adoption of electric vehicles. A global e-mobility index ranked Egypt 28th in October 2023, indicating the country’s readiness to transition to EVs. This ranking was reported by Egypt Today newspaper, citing US consulting firm Arthur D. Little.
The decision aligns well with the projections of investment management firm Goldman Sachs, which suggests that EVs could constitute nearly half (50%) of global car sales by 2035. Despite the challenges faced by the sector, such as competing market dynamics, this projection remains robust.
Moreover, analysts anticipate that within five years following 2035, a significant proportion of car sales will consist of more advanced autonomous or partially autonomous vehicles. This development underscores the growing importance and potential of the electric and autonomous vehicle market globally.
Saudi Arabia has set an ambitious goal to transition 30 percent of all vehicles in Riyadh to electric by 2030. This target is part of a larger strategy aimed at reducing emissions in the capital city by 50 percent. It aligns with the country’s broader objective of achieving carbon neutrality by 2060.
According to research firm Mordor Intelligence, the Middle East and Africa’s automotive EV market size is projected to reach $3.33 billion in 2024 and soar to $9.42 billion by 2029. This sector is anticipated to experience a significant compound annual growth rate of 23.2 percent from 2024 to 2029.
Governments across the region are increasingly prioritizing the promotion of eco-friendly vehicles and raising awareness about energy storage solutions within the renewable energy sector. These concerted efforts are expected to stimulate growth in the market for electric vehicles (EVs) and related technologies in the foreseeable future.
The shift towards electric vehicles not only addresses environmental concerns but also offers economic benefits. Reduced reliance on fossil fuels can lead to savings in fuel costs for consumers and decrease the region’s dependency on oil exports. Moreover, the adoption of EVs can contribute to job creation and technological advancement in the automotive sector.
With supportive government policies and growing public awareness, the transition to electric vehicles in the Middle East and Africa region is poised for substantial growth in the coming years.
Faisal Sultan, the vice president and managing director of Lucid Middle East, believes that the electric vehicle (EV) industry is on the brink of significant expansion in the Middle East. He anticipates a growing demand for eco-conscious automobiles in the region, driven by customers seeking sustainable transportation options.
Sultan highlighted that Lucid is working to address common barriers to EV ownership such as price, performance, and driving range. They aim to integrate electric vehicles seamlessly into people’s daily lives.
Despite the appeal of EVs for their futuristic design, one concern potential buyers may have is the need for more infrastructure to support these vehicles. However, with the projected 27.1 percent growth in the global EV market by 2024, according to research firm Canalys, it is clear that eco-conscious modes of transportation are becoming increasingly vital.
The rapid growth of the EV market indicates a significant shift toward sustainability and environmental responsibility. As more people embrace electric vehicles, the need for supporting infrastructure will become more pressing, driving further investment and development in this sector. The future of transportation is evolving, with eco-consciousness at its core.
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Last Updated on April 22, 2024 by Safiya K
