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Significance

Riyadh also aims to boost the share of EVs in its domestic market through indigenous production, while leveraging its strong ties with China, the world leader in EV sales and technology.

Impacts

Domestic production capacity could position Saudi Arabia as a hub for the export of vehicles to more developed EV markets.

The government will likely consider extending incentives and/or subsidies to encourage the adoption of EVs in the kingdom.

Environmental, social and governance issues related to critical metal extraction is a potential risk to efforts to ‘green’ Saudi’s image.

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