Soluem Becomes First Korean Company to Receive SIP Approval in Electric Vehicle Charging Sector

*This content was translated by AI.

-Final approval from Saudi government's industrial incentive program... Official recognition of local investment plans

-Aiming to establish a production base based on proprietary charging technology, officially launching expansion into Middle East markets

Electronics components specialist Soluem announced on the 15th that it has received final approval from the Saudi Arabian government's Standard Incentives for the Industrial Sector (SIP) program for its electric vehicle (EV) charging equipment manufacturing business.

It is reported that Soluem is the first Korean company to receive SIP approval in the EV charging equipment manufacturing sector. Industry observers are evaluating the significance of this achievement, noting that it represents an official recognition by the Saudi government of Soluem's proprietary EV charging technology and its local investment plans.

The SIP is a representative industrial incentive system operated by the Saudi government to promote local manufacturing and attract foreign investment in line with its national development strategy, "Vision 2030," and the National Industrial Strategy. Selected after review by the Ministry of Industry and Mineral Resources (MIM) and the Ministry of Investment (MISA), the program supports a certain percentage of eligible initial investment costs (CAPEX).

With this approval, Soluem has secured Saudi government subsidies and laid the groundwork for establishing a local production base and expanding its business. The company is moving forward with plans to establish a joint venture (JV) with its local Saudi partner, Al Bakheet, and is in discussions to build an EV charging equipment manufacturing plant that will apply its proprietary power modules.

This approval is seen as a result of the simultaneous recognition of Soluem's EV charging technology capabilities and its business execution capabilities. Soluem has developed the power modules, which are core components of charging equipment, and is supplying various charging solutions based on this technology. By establishing a local production system, the company is expected to enhance price competitiveness and supply stability, enabling it to respond more effectively to demand in the Middle East market.

Furthermore, the business model is highly evaluated for its potential to create additional business opportunities, as it aligns with the Saudi government's industrial localization (Local Content) policy and its strategy to expand eco-friendly mobility.

This project was promoted through cooperation between institutional investors from both South Korea and Saudi Arabia. The Embassy of the Republic of Korea in Saudi Arabia and the KOTRA Riyadh Trade Office provided diplomatic and practical support during the project's implementation, while the Saudi National Industrial Development Center (NIDC) and the Ministry of Investment (MISA) also collaborated during the permitting and review processes.

Recently, Soluem demonstrated its technological competitiveness by entering a public sector EV charging equipment proof-of-concept (PoC) project led by the Qatar Electricity and Water Authority (Kahramaa). The company is conducting technology verification in desert climate conditions and plans to expand its business across the entire GCC (Gulf Cooperation Council) market based on these results.

Industry observers are evaluating that this SIP approval carries symbolic significance beyond simply securing investment incentives, as it represents the official recognition of Korean EV charging technology by a key Middle Eastern nation. In particular, given that Saudi Arabia is growing into the largest eco-friendly mobility market in the Middle East, the potential for future business expansion is drawing attention.

Lee Chang-seop, Soluem's Head of the Middle East and Africa division, stated, "This SIP approval is the result of the Saudi government officially recognizing Soluem's EV charging technology and its local investment plans in the Middle East." He added, "Through a local joint venture, we will contribute to Saudi Arabia's industrial development by creating jobs, transferring technology, and fostering a supplier ecosystem, while rapidly expanding our foothold in the Middle East market." He concluded, "We hope this case will serve as a milestone for Korean manufacturing companies to enter the Middle East by utilizing Saudi Arabia's incentive systems and localization policies."

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*This content was translated by AI.