Lucid to work with Kacst on joint research for EV infrastructure. Plus: tourism, M&A and logistics

AUTOMOTIVE-

Lucid + Kacst team up for EV technologies research: The Public Investment Fund-backed EV maker Lucid signed a MoU with King Abdulaziz City for Science and Technology (Kacst) to work together on joint research for EV infrastructure and aerodynamics, according to a press release. The agreement will see them use Kacst facilities to study, test and evaluate EV batteries, autonomous driving and artificial intelligence technologies. They will also assess the performance of EVs in regards to the local weather. The joint research is scheduled for launch in 3Q 2024, according to the statement.

BACKGROUND- The PIF’s investments in a lower-carbon future include national electric vehicle brand Ceer and investments in US-headquartered Lucid Motors among others. Ceer awarded in March a SAR 5 bn construction contract for its electric vehicle complex to local contractor Modern Building Leaders. It expects to complete works at its electric vehicle complex within two years. Lucid inaugurated last year its first overseas production facility in King Abdullah Economic City (Kaec). It plans to produce 155k EVs yearly in the Kingdom once it hits full capacity here in 2025. It said in March that it is raising USD 1 bn in capital from PIF unit Ayar Third Investment. The potential proceeds will finance the company’s capex and working capital, among other things.

DEBT WATCH-

ICT solutions provider Perfect Presentation for Commercial Services (2P) has signed a SAR 149 mn Shariah-compliant bank facility from Banque Saudi Fransi (BSF) to fund newly awarded projects, it said in a disclosure to Tadawul. The facility runs till 31 December of this year.

TOURISM-

#1- The Saudi Tourism Investment Company (Asfar)— a wholly-owned subsidiary of the PIF— plans to set up tourist destinations in small cities nationwide to bridge the gap in the hospitality sector in those areas, its CEO Fahd Ibn Mushait told Aleqtisadiah. The move comes as part of the company’s strategy to transform smaller cities into tourism and entertainment hubs through partnerships with the private sector, he said.

IN CONTEXT- Asfar is currently developing projects in Al Baha, Yanbu, Al Ahsa and Taif in collaboration with private sector players such as Aoun, Al Tamimi, Batterjee Group and others, he said.

#2- Abu-Dhabi based hotel operator Rotana Hotels will launch seven hotels across the Kingdom over the next five years, Argaam reported. The move is part of a broader expansion plan that will bring the total of Rotana-branded hotel rooms to 4.4k at 16 hotels across the Kingdom. It marked the launch of its five-year expansion strategy with the opening of its Rotana Dar Rayhaan in Al Khobar. The hotel operator currently runs a total nine hotels locally between Riyadh, Jeddah, Al Khobar and two other cities.

LOGISTICS-

New shipping service added to Jeddah port: The Saudi Port Authority (Mawani) has added a new shipping service by local feeder and short sea shipping operator Folk Maritime to Jeddah Islamic Port, according to a statement. The shipping service — dubbed the Port Sudan Service (PSS) — will connect Jeddah Islamic Port with Port Sudan. The service, which has a capacity of up to 700 standard containers via regular weekly trips, aims to facilitate market needs and growing trade in the region.

BACKGROUND- Mawani has recently added a new shipping service — NRS by Folk Maritime — to its Jeddah Islamic Port to boost connectivity along ports in the North Sea. The service, which will offer a capacity of up to 1.3k TEUs, will link Jeddah Islamic Port to Yanbu Commercial Port, Neom Port, Jordan’s Aqaba and Egypt’s Sokhna.

M&A WATCH-

Taqat Mineral wants all of Bayan Al Naql: Taqat Mineral Trading signed a non-binding MoU to fully acquire scrap recycling firm Bayan Al Naql, it said in a disclosure to Tadawul. The four-month MoU sees both parties initiating discussions on the possibility of a transaction. A binding agreement should be finalized before 1 September unless both parties agree to an extension, according to the disclosure. No further details were disclosed.

REMEMBER— Taqat Mineral rang the bell on Nomu in March after floating a 20% stake.

DEVELOPMENT-

The Saudi Fund for Development (SFD) is set to fund a water treatment and biogas energy general project plant in El Salvador under a freshly-inked MoU, it said in a statement. SFD said the MoU “represents a step towards” the financing of the planned project on the Acelhuate River. It said a development loan will be provided by the SFD, with an agreement set to be signed later. No financial information or timeline for the project were disclosed.