Riyadh,  iPhone maker Foxconn and Saudi Arabia's sovereign wealth fund have formed a joint venture called 'Ceer' to build and sell electric vehicles.

The joint venture will license component technology from BMW to use in the vehicle development process.

Foxconn said in a statement that it will develop the electrical architecture of the vehicles which will lead to "a portfolio of products" in the areas of infotainment, connectivity and autonomous driving technologies.

By 2034, the new company expects to directly contribute $8 billion to Saudi Arabia's GDP, and to bring over $150 million of foreign direct investment.

It will create up to 30,000 direct and indirect jobs.

"Saudi Arabia is not just building a new automotive brand, we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, enables the private sector, and contributes to increasing Saudi Arabia's GDP over the next decade," said Crown Prince Mohammed bin Salman.

Additionally, the venture will support the country's Vision 2030 initiatives to reduce carbon emissions and promote sustainability in order to lessen the impact of climate change.

The Ceer cars are expected to be released in 2025.

Young Liu, Chairman of Foxconn Technology Group, said that they want to make electric vehicles mainstream, "and that is what Ceer is going to achieve in Saudi Arabia and the wider region".