Representatives from both companies recently signed a framework agreement. However, key details such as the capital investment and production capacity of the new venture remain undisclosed
KSA’s Waja Group and the Arab Organization for Industrialization (AOI) have launched a joint venture to manufacture, sell and market electric cars (EVs) within the Egyptian market and exporting abroad while aiming for competitive pricing.
Representatives from both companies recently signed a framework agreement. However, key details such as the capital investment and production capacity of the new venture remain undisclosed.
The initial phase of production is scheduled to begin at one of AOI's existing facilities, with plans for a second phase to be launched once the joint venture's new manufacturing facility becomes operational.
This partnership underscores AOI's ongoing efforts to bolster ties with fellow Arab nations, aligning with its vision to attract investments and boost export rates, in alignment with Egypt's Vision 2030.
During the signing ceremony, Major General Engineer Mokhtar Abdel Latif, Chairman of AOI, praised the collaboration with Waja Group, emphasizing the shared commitment to quality and international standards. He outlined the areas of cooperation, which include the establishment of a joint company to produce EVs catering to both domestic and international markets.
Production will be carried out in two phases, with the initial phase utilizing AOI's manufacturing capabilities to produce EV models tailored to Egyptian market needs and crafted in collaboration with major international firms.
The second phase will begin with the construction of a new manufacturing facility, equipped with state-of-the-art production and testing lines.
Ibrahim Abdellah Abdul Salam, Chairman of Waja Group, expressed gratitude for the partnership with AOI, recognizing the organization's illustrious history and expertise across various industrial sectors. He commended AOI's adherence to international quality standards and its track record in implementing industrial and economic development projects.
Egypt has been actively developing and implementing policies and incentives to foster a robust EV ecosystem, including establishing charging infrastructure networks across major cities, and offering tax breaks on EV imports.
Research firm Mordor Intelligence expects the Middle East and Africa EV market to grow to $3.33 billion in 2024 and will reach $9.42 billion by 2029, according to a report in January 2024.
