The European Union (EU) and the United Nations (UN) initially led the way in sustainable rebuilding initiatives. \u00a0The EU Europe 2020 strategy[1]<\/a> was adopted by the European Council on June 17, 2010, and has subsequently represented a common EU agenda for the current decade, challenging EU member states to lay the foundations for a more sustainable future \u2013 built on smart, sustainable and inclusive growth \u2013 and to rethink their economic frameworks by aiming to phase out emission-heavy industries, infrastructures and practices.<\/p>\n Then in 2015 the UN issued its own blueprint, Transforming Our World: the 2030 Agenda for Sustainable Development<\/em>[2]<\/a> which included a number of vital strategic sustainability goals. \u00a0These included Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all; and Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.<\/p>\n Finally of course, at national level, many countries are pursuing active sustainability agendas of their own, within and outside these wider initiatives. \u00a0These include the UK[3]<\/a>, Germany[4]<\/a>, several Scandinavian nations (for example Sweden[5]<\/a>), China[6]<\/a> and India[7]<\/a>, which was heavily involved in shaping the UN Sustainable Development Goals in the first place.<\/p>\n Saudi Arabia’s vision<\/strong><\/p>\n In early 2016, Saudi Arabia followed suit. \u00a0The country\u2019s Vision 2030 and National Transformation Plan 2020 laid out an ambitious reform program and a long-term road map to bolster the country\u2019s financial position by diversifying its economy.<\/p>\n However, it is much more than that. \u00a0The vision is to reposition Saudi Arabia as \u2018the heart of the Arab and Islamic worlds, the investment powerhouse, and the hub connecting three continents.\u2019[8]<\/a> \u00a0There have already been tangible steps on the path to change, including the recent royal proclamation to enable women to drive, and an announcement by His Highness the Crown Prince Mohammed bin Salman, at a Future Investment Initiative[9]<\/a> in Riyadh, that the kingdom would return to a more open and \u00a0\u2018moderate Islam\u2019. \u00a0At the same time he announced plans for NEOM, a new economic zone that will stretch across Saudi Arabia\u2019s borders into neighboring Egypt and Jordan.<\/p>\n Vision 2030 is also set on providing international firms with solid investment options in non-oil sectors including tourism and other services. \u00a0As well as opening up the country\u2019s equity market, the government will create several new industry clusters to stimulate the influx of foreign capital. \u00a0As part of the gradual opening-up process, in June 2017 the Saudi Stock Exchange (Tadawul) announced[10]<\/a> that it had been selected on the watch list for the influential MSCI Emerging Market Index, an important milestone in signaling to international investors that the country’s capital market is now attaining maturity in terms of efficiency, governance and regulatory framework. \u00a0Foreign capital currently makes up 4% of the Tadawul market, according to Mohammed Elkuwaiz, vice-chairman of the Saudi Capital Markets Authority, but that figure is expected to grow as the regulator looks to diversify the exchange\u2019s product range and attract a broader array of companies to list on it.<\/p>\n Investment opportunities<\/strong><\/p>\n Aside from the NEOM project, which is expected to attract private and government investment of more than US$ 500 billion in the coming years, other major investment opportunities abound.<\/p>\n Further projects include a major revamp of transport infrastructure between cities \u2013 such as the Haramain high-speed rail line between Makkah and Medina, and within the key hubs including a 10-year plan to boost metro lines and bus routes in Makkah, Jeddah, Dammam and Medina.<\/p>\n Also firmly on the agenda is the planned sale of part of the state-owned oil company Saudi Aramco, targeted for a potential international IPO in 2018, which could raise up to US$ 100 billion, based on government valuation estimates. \u00a0The proceeds from this planned sale have always been earmarked to support the investment programs associated with Vision 2030, so it is an important part of the funding plan for Saudi Arabia\u2019s sustainable development goals.<\/p>\n The message is clear. \u00a0With a strategic partner on the ground, and the right stewardship, companies, entrepreneurs and investors can tap into the country\u2019s huge potential \u2013 and at the same time make a real difference in the new Saudi Arabia.<\/p>\n A change in philosophy<\/strong><\/p>\n So, Saudi Arabia is forging towards a future no longer dependent on oil; but is this overhaul being done through gritted teeth, or is there also a genuine desire to contribute to a greener world?<\/p>\n The evidence speaks for itself \u2013 and the commitment is clear. \u00a0As far back as 2010, when the EU was issuing its Europe 2020 strategy, Saudi Arabia was establishing the Saudi Energy Efficiency Center (SEEC) to raise awareness of, and enhance, energy efficiency in the country. \u00a0Then, in Vision 2030, the government backed up the SEEC by committing to a US$ 1.33 billion atomic and renewable energy center for King Abdullah Economic City (KAEC), north of Jeddah.<\/p>\n Since then, progress has been rapid and consistent. \u00a0The Energy, Industry and Mineral Resources Minister, Khalid Al-Falih, announced at the World Future Energy Summit in Abu Dhabi in January 2017, that Saudi Arabia would be launching a National Renewable Energy Program (NREP), which was expected to invest US$ 30-50 billion in renewable energy programs by 2023. \u00a0He also announced that the country was in the early stages of studying its first two commercial nuclear reactors, part of a planned significant investment in nuclear energy. \u00a0The minister added that Saudi Arabia was working on ways to connect its renewable energy projects with Yemen, Jordan and Egypt. \u00a0Subsequently the energy ministry has announced tenders for 400 MW of wind power generating capacity in the Al Jouf region \u2013 the first utility-scale wind project within the NREP \u2013 and a 300-MW solar project in the same region. Minister Al-Falih added that round two of the NREP would be launched before the end of 2017, \u201ckeeping us firmly on track to deliver 9.5GW of renewable energy by 2023.\u201d<\/em><\/p>\n Meanwhile, the promise to upgrade bus, train and metro links will no doubt persuade some motorists to leave the car at home \u2013 and reduce pollution in the process \u2013 although this may be offset by an expected boost in car sales to new women drivers.<\/p>\n Although there is no wider policy-driven shift to alternative energy vehicles just yet, the prospect could be lucrative. \u00a0Which leads us to the question: where is<\/em> Saudi Arabia when it comes to electric vehicles (EV)?<\/p>\n Turning the roads green<\/strong><\/p>\n As things stand today, changes in consumer behavior and perceptions are being spearheaded mainly through hybrid technology, including the advanced hybrid vehicles available from Toyota and Lexus through Abdul Latif Jameel Motors\u2019 comprehensive network \u2013 bringing world-leading innovation to the Saudi Arabian motorist.<\/p>\n At present, the country has little-to-no infrastructure for full EV, but that could actually work to its advantage. \u00a0If Saudi Arabia decides to promote greener vehicle use as a matter of policy, the benefits could be considerable \u2013 with many profitable opportunities.<\/p>\n While the challenges are not unique to the Gulf region, Saudi Arabia is in a strong position to look at how the rest of the world is implementing EV infrastructure and, frankly, do it better.<\/p>\n In the early adopter EV nations there are three main reasons why EV adoption has been sluggish: range, cost versus benefit, and infrastructure. Saudi Arabia\u2019s relatively late transition to EV could actually work to its advantage in mitigating all three.<\/p>\n Range\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>The term \u2018range anxiety\u2019 stems from EV drivers\u2019 fear of running out of power too quickly and too far away from assistance. \u00a0To address this, EV manufacturers have had to step up. \u00a0Data published in Motoring Research<\/em> earlier this year included range estimates from New European Driving Cycle (NEDC) testing of a number of battery-only EV; revealing that numerous marques are now boasting battery ranges of over 160 km (100 miles) per charge.[11]<\/a> \u00a0The Nissan Leaf (the world\u2019s best-selling EV, with 280,000 vehicles sold worldwide up to July 2017 according to a recent Bloomberg article) includes several models with ranges of over 100 km, including the 24kWh and the 30kWh; while at the higher end of the battery and price range, the top-performing Tesla models can exceed 480 km (300 miles) per charge. \u00a0These include the Tesla Model 3 Long Range, which can go nearly 500 km (310 miles) on a single charge, according to a recent BBC Top Gear<\/em> consumer review.<\/p>\n The legacy of range anxiety is still a problem in Europe. \u00a0However in new and developing markets, intensive consumer education programs are helping to fill in knowledge gaps. China, for example, is a relative latecomer to the EV market, yet range anxiety hasn\u2019t impacted sales there, and it continues to be a significant market for manufacturers of New Energy Vehicles (NEV, as they are known in China) despite reductions in local and central subsidies which have kicked in this year. \u00a0The total NEV share of passenger car sales in China reached a new high in June, at 2.5%, in an otherwise sluggish overall car market, and overall sales in 2017 are expected to reach 530,000. \u00a0What\u2019s more NEV passenger car sales in China are growing 20 times faster than the car market as a whole.[12]<\/a><\/p>\n These figures suggest China is a model that Saudi Arabia can look to when planning its EV program \u2013 starting with clear, comprehensive information.<\/p>\n Cost\/benefit\u00a0\u00a0\u00a0\u00a0 <\/strong>Until recently, the argument went along the lines that although drivers might save on fuel with an EV, the cars themselves were still significantly more expensive (and troublesome) than their internal combustion engine (ICE) equivalents. \u00a0Today manufacturers are working hard to carve out a solid EV business model, and UBS research published in May 2017[13]<\/a> found that, by 2018, EV and ICE cars will finally see price parity. \u00a0By the time Saudi Arabia is fully in this race, EV will be ever more competitive in terms of price.<\/p>\n Infrastructure\u00a0\u00a0 <\/strong>Notwithstanding these concerns, probably the biggest issue hampering EV breakthrough in Europe has been infrastructure. \u00a0Take Germany as an example. \u00a0In mid-2015, the country had just 2,500 scattered publicly accessible charging stations available for around 38,000 German EV. \u00a0Keep in mind that the average charge time for an EV is, depending on the connector, anything between 30 minutes (the BMW i3) and 30 hours (the Ford Focus Electric). \u00a0Most EVs are responsive to fast-charging, so there has been a race to install speedy chargers, but \u2013 again using Germany as the example \u2013 just 100 publicly accessible fast-charging stations were available as of 2015[14]<\/a>. Building infrastructure first seems the way to go, and Saudi Arabia has a clean slate available on which to do just that.<\/p>\n Still, there will be practical challenges implementing EV architecture in such a huge and sparsely-populated land mass. \u00a0The sheer distances involved as a result of the country\u2019s geography raise range considerations right to the top of the list. \u00a0Against this, research is starting to emerge which investigates the possibility of charging EV batteries using solar energy. \u00a0A paper[15]<\/a> published in April 2016 in Science Direct<\/em> assessed data from the Dutch Meteorological Institute against EV charging profiles, with a view to considering the feasibility of solar EV charging based on two scenarios: weekday-only and daily charging. \u00a0It certainly appears that this is a live area for research and potentially feasible.<\/p>\n A blank canvas<\/strong><\/p>\n The standard industry view is that it is challenging to retrofit infrastructure to cope with active demand for EV, and that this has had a limiting effect on growth in most of Europe, with one or two notable exceptions such as Norway.<\/p>\n![\"Plug-in](\"https:\/\/media.alj.com\/app\/uploads\/2018\/05\/PHV-300x142.png\")
<\/p>\n
![\"The](\"https:\/\/media.alj.com\/app\/uploads\/2018\/05\/Electric-Cars-300x242.jpg\")
<\/p>\n![\"Saudi](\"https:\/\/media.alj.com\/app\/uploads\/2018\/05\/Vision-2030-300x181.png\")
With Saudi Arabia\u2019s new vision for diversifying its economy and expanding its cultural horizons we could be looking at a very different country by 2030.<\/p>\n