Dubai Telegraph - In fuel-guzzling Saudi Arabia, electric cars pique interest

EUR -
AED 3.814606
AFN 78.415845
ALL 99.726864
AMD 412.675093
ANG 1.871094
AOA 947.173661
ARS 1091.38173
AUD 1.669199
AWG 1.872017
AZN 1.769687
BAM 1.956944
BBD 2.096195
BDT 126.599749
BGN 1.957765
BHD 0.391529
BIF 3073.096669
BMD 1.038567
BND 1.408876
BOB 7.174091
BRL 6.063679
BSD 1.038192
BTN 89.881385
BWP 14.460245
BYN 3.397472
BYR 20355.916977
BZD 2.085389
CAD 1.507294
CDF 2963.032577
CHF 0.945143
CLF 0.03699
CLP 1020.662705
CNY 7.463875
CNH 7.59794
COP 4367.175045
CRC 523.698614
CUC 1.038567
CUP 27.522031
CVE 110.326846
CZK 25.180104
DJF 184.57457
DKK 7.461654
DOP 64.137498
DZD 140.46937
EGP 52.162976
ERN 15.578508
ETB 132.98733
FJD 2.411453
FKP 0.85535
GBP 0.836841
GEL 2.970708
GGP 0.85535
GHS 15.884057
GIP 0.85535
GMD 75.300121
GNF 8973.944144
GTQ 8.030695
GYD 217.20385
HKD 8.092184
HNL 26.447462
HRK 7.664156
HTG 135.799394
HUF 407.745458
IDR 16986.078007
ILS 3.712276
IMP 0.85535
INR 89.974971
IQD 1359.995114
IRR 43723.679179
ISK 146.698017
JEP 0.85535
JMD 163.730206
JOD 0.736556
JPY 161.001287
KES 134.186829
KGS 90.8231
KHR 4177.38195
KMF 491.086896
KPW 934.710589
KRW 1513.421283
KWD 0.320367
KYD 0.865193
KZT 537.956384
LAK 22586.879075
LBP 92969.011081
LKR 309.390884
LRD 206.597802
LSL 19.37863
LTL 3.066619
LVL 0.628219
LYD 5.096808
MAD 10.421193
MDL 19.383052
MGA 4827.752792
MKD 61.607882
MMK 3373.22573
MNT 3529.051432
MOP 8.333652
MRU 41.590316
MUR 48.449553
MVR 16.004713
MWK 1800.226492
MXN 21.477429
MYR 4.626857
MZN 66.375221
NAD 19.37863
NGN 1560.966848
NIO 38.202335
NOK 11.741745
NPR 143.809231
NZD 1.838446
OMR 0.399809
PAB 1.038192
PEN 3.862158
PGK 4.227329
PHP 60.774915
PKR 289.5784
PLN 4.218305
PYG 8188.78753
QAR 3.784413
RON 4.977892
RSD 117.122378
RUB 102.38466
RWF 1473.640272
SAR 3.895516
SBD 8.779725
SCR 15.593159
SDG 624.179235
SEK 11.499079
SGD 1.41066
SHP 0.85535
SLE 23.757264
SLL 21778.234665
SOS 593.338322
SRD 36.453193
STD 21496.24403
SVC 9.084005
SYP 13503.450624
SZL 19.366322
THB 35.080762
TJS 11.352473
TMT 3.645371
TND 3.315939
TOP 2.432432
TRY 37.228899
TTD 7.042015
TWD 34.21252
TZS 2648.346689
UAH 43.296671
UGX 3822.234649
USD 1.038567
UYU 44.926266
UZS 13470.875675
VES 60.624614
VND 26047.265193
VUV 123.300783
WST 2.908847
XAF 656.331241
XAG 0.033127
XAU 0.000371
XCD 2.80678
XDR 0.793637
XOF 656.318595
XPF 119.331742
YER 258.473449
ZAR 19.388544
ZMK 9348.35474
ZMW 29.043561
ZWL 334.418212
  • RBGPF

    2.7100

    64.91

    +4.18%

  • CMSC

    -0.2100

    23.47

    -0.89%

  • CMSD

    -0.3800

    23.84

    -1.59%

  • SCS

    -0.1600

    11.48

    -1.39%

  • BCC

    -2.5000

    126.16

    -1.98%

  • NGG

    -0.3400

    61.4

    -0.55%

  • RIO

    -0.5000

    60.41

    -0.83%

  • RELX

    -0.4600

    49.89

    -0.92%

  • RYCEF

    0.0400

    7.49

    +0.53%

  • GSK

    -0.0900

    35.27

    -0.26%

  • BCE

    -0.1100

    23.79

    -0.46%

  • AZN

    -0.4800

    70.76

    -0.68%

  • VOD

    -0.0700

    8.54

    -0.82%

  • BP

    -0.5500

    31.06

    -1.77%

  • JRI

    -0.0400

    12.53

    -0.32%

  • BTI

    -0.0400

    39.64

    -0.1%

In fuel-guzzling Saudi Arabia, electric cars pique interest
In fuel-guzzling Saudi Arabia, electric cars pique interest / Photo: Fayez Nureldine - AFP

In fuel-guzzling Saudi Arabia, electric cars pique interest

For Hamed al-Rafidain, a Saudi human resources worker, an electric vehicle offers welcome savings, especially since his other car is a fuel-guzzling four-wheeler favoured by motorists in the desert kingdom.

Text size:

The 39-year-old is part of a small but growing EV consumer base in Saudi Arabia, which hopes to become a hub for the technology as it seeks to diversify its economy away from oil.

Although the EV market in the world's largest oil exporter remains small compared with the United States and China, it tripled last year to nearly 800 cars, according to Saudi business news outlet Al-Iqtisadiyah.

"What drove me to buy an electric vehicle was financial considerations," said Rafidain, who spends up to 2,000 riyals ($530) a month on fuel for his off-road vehicle.

"Maintenance costs are also lower compared to a conventional vehicle, with no oil changes and no brake-pad replacements," he added, pointing to the engine-free storage space under the hood of his new car.

Chinese EV giant BYD is expected to dominate the Saudi market. Its global rival Tesla of the United States has no dealerships in the Gulf kingdom.

With eight million residents, Riyadh experiences traffic jams that contribute to high pollution levels.

Rafidain said he chose an EV because of environmental concerns, noting electric vehicles "help reduce global warming in cities".

For a little over $53,300, he bought a BYD that he mostly uses for short trips within the capital.

- EV challenges -

A lack of charging infrastructure and Saudi Arabia's vast size mean that many view their EVs as suitable for shorter trips, rather than replacements for conventional vehicles.

Using an EV for travel outside the city was a "gamble, especially since the infrastructure is still underdeveloped", Rafidain said, noting the range of current batteries is only about 400 kilometres (250 miles).

While BYD and Lucid install charging stations directly at customers' homes, the Electric Vehicle Infrastructure Company (Eviq) is working to place them elsewhere, aiming for 5,000 across the country by 2030.

EV prices remain high in Saudi Arabia, where fuel costs are lower than in most countries, with a litre of petrol costing $0.62.

A vehicle from Lucid, which opened a factory in Jeddah last year after a billion-dollar Saudi investment, costs $92,000, but the arrival of BYD is expected to make EVs more affordable.

Industry expert Hossam Iraqi said EVs are less popular among Saudis owing to their size and performance in extreme heat.

"Most current electric vehicle production is small to medium-sized, which does not suit the needs of large Saudi families," he said, adding the Gulf region's extreme heat has an impact on battery efficiency.

- Saudi surge -

Salesman Hassan Mohammed expects strong EV sales this year, as demand grows at home and abroad.

"More than one car brand has opened its doors in the kingdom and now offers after-sales service, which has encouraged consumers," he said at an exhibition in northern Riyadh, where Saudis test-drove cars.

Al-Iqtisadiyah reported in April that Saudi Arabia imported only 779 EVs in 2023, up from 210 the previous year, citing official Saudi statistics.

The country is also ramping up domestic production.

Saudi Arabia's sovereign wealth fund, PIF, now controls 60 percent of Lucid and has secured a deal with South Korea's Hyundai to establish a plant in the kingdom for both EVs and petrol-powered cars.

Additionally, Saudi EV brand CEER, launched in 2022, plans to start production in 2025.

Earlier this year, Saudi Industry Minister Bandar al-Kharif said the country was aiming to produce 300,000 EVs annually, without giving a timeline.

Riyadh, targeting carbon neutrality by 2050, was also in talks with battery producers, he said.

For now, some still prefer hybrid vehicles, which use both batteries and petrol to go longer distances.

"The balance between electricity and gasoline is economical and convenient," said Omar el-Shami, a 43-year-old Egyptian pharmacist, as he charged the car he bought for his wife.

"Things may change in the future," he said.

H.El-Din--DT