Supercar maker McLaren could soon get a new Gulf owner that will push the brand to go electric: On Oct. 29, Abu Dhabi government-owned investor CYVN Holdings agreed to acquire McLaren Group’s automotive business from current owner Mumtalakat, Bahrain’s sovereign wealth. Although the pact remains nonbinding, the two firms touted the deal’s potential “in the field of electric vehicles.” 

That same day, Elon Musk made a virtual appearance at Riyadh’s Future Investment Initiative, a surprise move that suggested the billionaire could be warming to Saudi Arabia again after ties suffered following a botched effort to take Tesla private in 2018 with help from the kingdom’s Public Investment Fund (PIF). Musk’s appearance focused on AI, but Saudi Arabia hasn’t been shy about its hopes to host a Tesla factory. Could a new push be brewing? 

These developments come as both Gulf powers are actively seeking impactful roles in the electrification of the automotive industry as part of diversification drives. Amid growing economic competition, Saudi Arabia and the UAE are investing heavily in EV opportunities (including by backing Tesla challengers), but they’re also targeting this new industry in different ways. 

For instance, Saudi Arabia has been making moves aimed at becoming a major EV production hub. Most recently on that front, Indian EV maker Wardwizard Innovations inked a Saudi joint venture in September to establish an assembly plant in the kingdom. However, the big bet has been on US luxury EV maker Lucid, which now counts a PIF affiliate as its majority stockholder.