As Saudi Arabia accelerates its transition towards a sustainable future, the Kingdom has embarked on several initiatives to bolster its electric mobility ecosystem. From new licensing frameworks to joint ventures for EV charging infrastructure, these efforts highlight the nation’s practical steps towards its Vision 2030 goals.
A New Licensing Framework for EVs
One of the most impactful changes comes from Saudi Arabia’s new vehicle licensing structure, which took effect on January 1, 2025. Moving away from engine capacity as the basis for licensing fees, the updated structure calculates fees based on vehicle value before customs duties. This approach represents a more equitable and environmentally conscious system that aligns with global trends in automotive policy.
The revised framework includes significant benefits for electric and hybrid vehicles. Electric vehicle owners will enjoy a 50% discount on licensing fees compared to traditional gasoline-powered cars, while hybrid vehicles will benefit from a 24% reduction. Licensing fees for all vehicles will also decrease by 20% after five years from registration, reflecting depreciation in market value. This element of the policy addresses concerns over long-term ownership costs and further incentivizes environmentally friendly vehicle options. By implementing these measures, Saudi Arabia is actively promoting the shift towards sustainable transport systems.
Expanded Public Transport: A Step Towards Cleaner Cities
In Makkah, plans are underway to significantly expand Jeddah’s public transport system. Currently consisting of six routes and 76 buses, the system will grow to include 14 routes and 91 buses, with several new electric buses integrated into the fleet. The addition of electric buses is designed to reduce traffic congestion and improve air quality in Jeddah while offering residents a modern and efficient mode of transportation.
The inclusion of electric buses in the expanded network aligns with Saudi Arabia’s broader efforts to transition to sustainable urban mobility. By prioritizing investments in cleaner public transport options, Makkah is paving the way for other regions to adopt similar measures, demonstrating how cities can play a crucial role in the Kingdom’s wider sustainability strategy.
Charging Infrastructure and Local Partnerships
To meet the growing demand for electric vehicles, Saudi Arabia has established a joint venture named Smart Mobility SJSC. The $100 million partnership between Foxconn Interconnect Technology and Saleh Suleiman Alrajhi & Sons aims to manufacture EV charging stations locally, reducing reliance on imported technology and strengthening the domestic EV ecosystem.
This joint venture will not only enhance the availability of charging infrastructure but also contribute to Saudi Arabia’s renewable energy initiatives. Saleh Suleiman Alrajhi & Sons, through its subsidiary Next Charger, brings expertise in charging services, while Foxconn’s experience in electronics manufacturing adds technical depth to the collaboration. By focusing on local production and expertise, this partnership underscores the Kingdom’s commitment to fostering a self-sufficient and sustainable electric mobility framework.
In addition to Smart Mobility SJSC, the Electric Vehicle Infrastructure Company (EVIQ) has emerged as a major player in the Kingdom’s charging network expansion. A joint venture between the Public Investment Fund (PIF) and the Saudi Electricity Company (SEC), EVIQ plans to establish over 5,000 fast chargers across more than 1,000 locations by 2030. This initiative aims to support the widespread adoption of EVs while ensuring drivers have reliable access to charging facilities. EVIQ’s focus on integrating advanced technologies and user-friendly platforms further underscores its role in accelerating the transition to electric mobility.
Furthermore, the Saudi Electric Vehicle Charging Infrastructure Development Initiative (SEVCIDI), launched in 2021, set a target of installing 50,000 charging stations across the country by 2025. These developments demonstrate a coordinated effort between public and private entities to create a robust and accessible EV ecosystem in Saudi Arabia.
Al-Futtaim Electric Mobility Company (AFEMC), which represents Chinese car company BYD in Saudi Arabia, announced last year that it aims to install 10% of the Kingdom’s charging stations by 2030.
A Surge in Energy Sector Licensing Applications
The Kingdom’s regulatory environment reflects its proactive approach to renewable energy and electric mobility. According to the Energy and Minerals Regulatory Commission, there were 923 license applications in the energy sector over the past month, with notable interest in electric vehicle infrastructure. Among these, 26 applications were submitted for public EV charging station permits, and seven applications were for public charging station licenses. These figures demonstrate a clear focus on building the necessary infrastructure to support the growing adoption of electric vehicles.
Toward a Sustainable Future
Saudi Arabia’s efforts to advance electric mobility infrastructure represent a deliberate and measured approach to achieving its Vision 2030 objectives. By revising licensing structures, integrating electric buses into public transport, establishing strategic partnerships, and fostering a supportive regulatory environment, the Kingdom is making meaningful progress toward creating a robust ecosystem for electric vehicles.
As these initiatives take shape, Saudi Arabia is positioning itself as a regional leader in the transition to sustainable transportation. These developments not only reflect the Kingdom’s economic diversification strategy but also underscore its commitment to addressing global environmental challenges through practical and impactful measures.
