Saudi Arabia is preparing to launch a new electric vehicle (EV) brand, called Ceer, in partnership with Taiwanese multinational contract manufacturer Foxconn.

The Public Investment Fund (PIF), the kingdom's sovereign wealth fund, recently announced that it decided launch a new automotive brand together with Foxconn to produce electric cars in Saudi Arabia. The new brand will be responsible for designing, manufacturing and selling a wide array of EVs (including all-electric sedans and sports utility vehicles) in Saudi Arabia and the MENA (Middle East & North Africa) region.

The announcement about Ceer was made by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, who said that the new brand is part of the sovereign fund’s strategy to diversify the country’s gross domestic product (GDP) growth by making investments in promising growth industries. The Crown Prince explained that the new automotive brand would ignite a new industry and an ecosystem that would in turn attract international as well as local investments to create new job opportunities for local people.

Making the announcement, Abdulaziz said, “Saudi Arabia is not just building a new automotive brand, we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, enables the private sector, and contributes to increasing Saudi Arabia's GDP over the next decade.”

The aforementioned plan is part of the sovereign fund’s strategy to drive the country’s economic growth in line with Vision 2030.

Under the terms of the joint venture (JV) deal between PIF and Foxconn (Hon Hai Precision Industry Co.), the Taiwanese contract manufacturer will be responsible for licensing component technology from luxury brand BMW for use in the EV development process. While no details on specific components have been provided yet, some emerging reports suggest that the JV has plans to source chassis components from BMW.

Foxconn will develop the electrical architecture of the vehicles, which should bring about a portfolio of products related to the areas of infotainment, connectivity and self-driving driving technologies. Nothing has been revealed about the market positioning of Ceer EVs.

Just last year, Foxconn introduced the world to its own first EV concepts, including the all-electric Model C crossovers and Model E luxury sedan. However, the contract manufacturer has no plans to sell EVs under its own brand. It just intends design and manufacture EVs for other automakers.