Formula E electric vehicle racing in Saudi Arabia
Saudi Arabia's path to transition, part 2: Energy addition
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
Saudi Arabia's energy system must undergo a significant transformation to meet its net-zero target by 2060, with renewable energy set to play a crucial role. The country is projected to exceed its 2030 target of 58.7GW of renewable energy generation. Alongside renewables, the government is also focusing on expanding the electric vehicle (EV) industry. The Public Investment Fund (PIF) has allocated $1b to localise EV production, and in 2022 Saudi Arabia launched its own EV manufacturer. Additionally, PIF owns more than 60% of Lucid, a US-based EV maker that has opened a production facility in Saudi Arabia. The Saudi Ministry of Investment has also secured a $5.6b deal with a Chinese EV manufa
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The December 2025/January 2026 issue of Petroleum Economist is out now!
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Abdullah Aljarboua serves as a senior fellow in the energy macro & microeconomics programme at KAPSARC. His work spans macroeconomics, energy-economic modelling, large-scale optimisation and advanced computational techniques for modelling complex energy policy dynamics. Here he speaks with Petroleum Economist about the Gulf region’s role in shaping the energy landscape over the coming decades
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The 25th WPC Energy Congress, taking place in Riyadh in April 2026 brings together global leaders, scientists, policymakers and innovators at a pivotal moment in the world’s energy evolution.
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