Dubai's Green Mobility Startup to Invest $500 Million in Evergrande's EV Division

NWTN, a Dubai-based green mobility solutions start-up, has announced plans to invest $500 million in China Evergrande Group's electric vehicle (EV) unit. NWTN will receive a 27.50% stake in China Evergrande New Energy Vehicle Group (NEV) as a result of the investment, which is expected to close in the fourth quarter of 2023, subject to regulatory approvals.

Following the announcement, NEV's stock rose nearly 50% as the company announced plans to repay a $3.2 billion debt. NWTN sees this capital injection as an opportunity to accelerate its development in the EV sector and meet the Middle East's growing EV demand.

Founded by Chinese entrepreneur Alan Nan Wu, NWTN operates an EV assembly facility in Khalifa Industrial Zone Abu Dhabi (Kizad), which is part of AD Ports Group. The company has been strategically expanding its business in markets in the Middle East, North Africa, and China.

Based on Arthur D. Little report, the UAE has significant potential in the EV market, with a projected compound annual growth rate of 30% between 2022 and 2028. Last year, the country ranked eighth in the world in the electric mobility readiness index, indicating its willingness to adopt EVs. In addition, the UAE's Ministry of Energy and Infrastructure (MoEI) announced in July that by 2050, half of all cars in the region would be electric. Dubai, in particular, has set a target of 42,000 EVs on its roads by 2030.

NWTN's investment in China Evergrande's EV unit aligns with the company's goals of advancing sustainable transportation solutions and capitalising on the Middle East's thriving EV market.