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‎Lucid: Saudi EV plant represents 10% of total facility area, mulls to add more buildings

Thu, 28 Sep 2023 13:04:00 GMT

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Faisal Sultan, Vice President and Managing Director of Lucid Middle East

Faisal Sultan, Vice President and Managing Director of Lucid Middle East, said the company's first international electric vehicle (EV) plant in King Abdullah Economic City (KAEC) represents about 10% of the facility's total area.

On the sidelines of opening the plant, Sultan told Argaam that the company plans to add eight to 10 buildings to complete the full manufacturing facility in three and a half years.

The firm, which is partly owned by the Public Investment Fund (PIF), will work on assembling car parts from Arizona until the manufacturing facility is completed.

The plant's production capacity is 5,000 vehicles per shift, with the possibility of increasing it, Sultan said. He added that the target production capacity is 155,000 vehicles annually after the manufacturing facility is completed, then the company will begin exporting.

The factory has a strategical logistics location on the Red Sea coast, where shipping can be made to Europe, Africa, and Asia.

Sultan added that Saudi Arabia is witnessing transformation, where Lucid aims to play a role in bringing the vehicle manufacturing technology to the Kingdom.

Lucid received support and facilities from several government authorities, such as the Ministry of Investment, Ministry of Industry and Mineral Resources, Saudi Industrial Development Fund (SIDF) and Saudi Human Resources Development Fund (HRDF), along with other incentives to facilitate foreign investment.

Elsewhere, Sultan said EVs are witnessing strong demand, pointing to some headwinds in the EV sector due to global economic conditions and fierce competition.

He added that a 10% price reduction in the EV sector supports demand and customer appetite in the Kingdom to buy cars at very fair and balanced prices.

Lucid Group opened its first EV factory in Saudi Arabia’s King Abdullah Economic City (KAEC) on Sept. 27, Argaam reported.

‎Riyal Motors plans to float 720,000 shares on Nomu

Thu, 28 Sep 2023 11:29:00 GMT

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Logo ofRiyal Investment and Development Co.

Saeed Al-Ghamdi, CEO of Riyal Investment and Development Co. (Riyal Motors), told Argaam that the company specializes intheoperational leasing of cars to institutional and corporate clients across the Kingdom.

He added that the firm owns and manages a fleet of nearly 3,500 cars of different models.

Aldukheil Financial Group (AFG), the financial advisor for the initial public offering (IPO) of Riyal Motors on the Nomu-Parallel Market, announced that the offering will run from Oct. 1-5.

Al-Ghamdi underscored the development of the company's business andfleet, aswell as demand for its services.

Here is the full interview:

Q: Could you give us insight into the company and its business development?

A: The company started as a sole proprietorship, and it turned into a limited liability company in 2010, with SAR 2 million in capital and a fleet of 457 cars.

The firm continued to develop its business, fleet, and customer base. In 2012, it launched a unique service for maintaining its fleet through mobile maintenance trucks.

The number of mobile maintenance trucks increased to 30 due to the growing demand for the service. Meanwhile, the company currently has a fleet of approximately 3,500 cars.

Q: How about the car models and details of the company’s fleet?

A: Riyal Motors stands out for its unique fleet composition, with rough terrain cars accounting for 67% of the company's fleet to serve major oil and gas projects.

The company also prepares cars based on the customer’s requirements, such as installing supporting iron legs, tracking systems, cameras, and security systems, as well as coolers and freezers for small and medium-sized cars designated for transporting meals to remote locations.

In general, the company's fleet includes luxury cars for corporate executives, SUVs for projects, sedans, minibuses, and large buses, as well as large and medium-sized trucks, manufactured by major car manufacturers such as Toyota, Hyundai, Chevrolet, GMC, Ford, Nissan, and Isuzu.

Q: What is the company’s policy for serving and offering maintenance to customers?

A: Riyal Motors has great experience in providing distinguished services to customers, as it provides different types of cars based on customer needs. In addition, it delivers cars to customers at the agreed-upon time.

In addition, the firm has alternative cars in several areas to facilitate the service of delivering cars to customers if his car is broken down or crashed.

The company has built strong relationships with several customers and other firms operating in energy, as well as oil and gas exploration in remote areas. Riyal Motors provides these businesses with safety vehicles and cars supported by steel bars, tracking systems, cameras, security systems, and refrigerators for small and midsize trucks to transport food meals to remote areas.

The company has a well-trained administrative, marketing, and technical team qualified to provide the best customer service across the Kingdom. Since 2018, Riyal Motors has been certified to ISO 9001:2015 for internal and external quality management systems.

Q: How do you see demand levels for car rental services?

A: The car rental industry has seen growth on a continued increase in demand. We expect demand to grow, backed by various reasons, such as the post-pandemic economic recovery, the resumption of development plans in line with Vision 2030, and government initiatives to attract major global companies to the Kingdom. This will be directly reflected in raising demand levels in the sector.

The company will continue to enhance all business lines by providing the best customer service, reducing costs, and enhancing efficiency.

For More IPOs

‎Fiera Capital invests actively in Saudi Arabia, stock market offers many opportunities: exec

Mon, 25 Sep 2023 14:42:00 GMT

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Julius Böttcher, Portfolio Manager atFiera Capital

Fiera Capital has a long history of investing in Saudi Arabia since its incorporation, Julius Böttcher, Portfolio Manager, told Argaam on the sidelines of the EFG Hermes London Conference.

He added that the company was one of the first qualified foreign investors in the Saudi market.

"What is very exciting about the Saudi market is that there are a lot of changes. The market is also witnessing several activities and IPOs that provide new opportunities," Böttcher said.

In 2017, the market was dominated by two main sectors: banking and petrochemicals. However, it is currently witnessing a wave of IPOs and has become more diverse, the executive said.

Böttcher added that there are a lot of opportunities in the market to benefit from the reforms made in light of Vision 2030.

The company divides the market into three categories: banks, petrochemicals and other sectors.

"We look forward to the other sectors with several good opportunities," Böttcher said.

Fiera Capital looks for companies that benefit from changes and reforms in Saudi Arabia, which allows for increasing profitability.

This includes the companies that take advantage of the mega government projects and strong spending on giga-projects, as well as the firms that leverage the social reforms taken in the Kingdom, Böttcher said.