Saudi Arabia, known for its vast oil reserves, has a vested interest in the combustion engine industry as car manufacturers shift towards electric vehicles. Companies like Horse in London, Renault from France, Geely from China, and Saudi Aramco are doubling down on combustion engines despite the global push towards sustainable energy.
Saudi Aramco, owned by the Saudi government, is one of the world’s wealthiest companies and holds a significant amount of oil reserves. While the company has invested in hydrogen energy and other initiatives, its focus on developing combustion engine technology and mega real estate projects like Neom suggests that it believes oil will remain relevant for generations to come.
Despite the growing concerns about climate change, oil companies like Aramco continue to invest in combustion engines, anticipating their longevity in the market. In 2024, Aramco’s market cap was $1.814 trillion, primarily focused on the exploration, production, refining, and distribution of petroleum products. The company plays a crucial role in Saudi Arabia’s economy, which heavily relies on oil revenues.
Amidst the shift towards electric vehicles, Saudi Aramco, Geely, and Renault are investing in Horse Powertrain, a London-based company specializing in fuel-based engines. Despite the trend towards electric cars, Aramco believes that internal combustion engines will remain a dominant force in the industry for the foreseeable future.
Horse, headquartered in London, has operations in various countries and focuses on producing powertrains, including internal combustion engines and hybrid systems. The company, a joint venture between Renault and Geely, is betting on the longevity of combustion engines as the industry evolves.
While some car companies are moving towards electric engines, companies like Horse are banking on the continued demand for combustion engines. Despite the push towards sustainable energy, Saudi Arabia’s reliance on oil and gas industries remains a key factor in its economy and lifestyle. The decision to invest in combustion engines may seem counterintuitive to the climate movement, but for countries like Saudi Arabia, it is a strategic move to ensure energy security and economic stability.
