Vmoto Ltd Signs Saudi Framework to Target GCC and Africa EV Markets

Vmoto signs Saudi Arabia partnership framework to unlock Middle East and Africa growth

Vmoto Limited (ASX: VMT) has signed a strategic cooperation framework agreement with Alsak Investment Company on 10 August 2026, combining Vmoto’s global expertise in electric mobility with Alsak’s investment capabilities, market knowledge and business development experience in the Kingdom of Saudi Arabia.

The partnership targets the Gulf Cooperation Council (GCC) and Africa regions. Importantly, the agreement is non-binding. It is intended to guide the study and evaluation phase of the proposed initiatives and does not commit either party to proceed with any transaction or investment unless subsequent definitive agreements are executed.

For investors, the framework positions Vmoto to potentially establish a regional operational base in a fast-growing economic hub, though any outcome remains subject to definitive agreements.

What the framework agreement covers

Under the agreement, both parties will jointly assess establishing an integrated global headquarters and regional operational centre in the Kingdom of Saudi Arabia. This centre would serve as Vmoto’s operational hub for the Middle East and North Africa.

The assessment will consider an integrated operating platform that may include:

• An assembly facility

• Product distribution

• After-sales services and maintenance operations

• Charging and battery-swapping networks

• Any supporting activities considered necessary to serve the region efficiently

The parties have outlined a staged process to work through collaboratively:

1. Establishing a joint working team

2. Assessment phase

3. Implementation roadmap

4. Definitive agreements

5. Obtaining all necessary corporate and regulatory approvals

This structured, phased pathway signals a disciplined approach rather than a rushed transaction, with each stage building towards a potential formal partnership.

The value opportunity Vmoto identifies

The Company expects the cooperation could create significant long-term value if the definitive agreements are executed and Alsak becomes a strategic partner of Vmoto’s. The stated value drivers include:

• Centralising the operational base in Saudi Arabia to increase supply efficiency and reduce costs

• Access to a larger pool of funding to further grow the Company

• The ability to deepen local markets and develop business with local businesses and governments

These benefits are contingent on execution and are not guaranteed at this stage.

Why Saudi Arabia and the GCC matter for EV players

Global companies are increasingly targeting Saudi Arabia and the GCC for expansion, and the appeal centres on a combination of geography and policy. The Kingdom occupies a strategic location connecting the Middle East, Africa and beyond, making it a natural staging point for companies serving multiple regional markets.

According to Vmoto’s Managing Director Charles Chen, the Kingdom offers a “strategic location, developing infrastructure and supportive investment environment.” These factors, alongside investment incentives, help explain why a regional hub could hold commercial appeal.

For an electric mobility manufacturer, a localised footprint spanning assembly, distribution and charging infrastructure could support growing regional demand for electric vehicles. Establishing operations closer to end markets may improve responsiveness and efficiency for a company expanding beyond its existing markets, though the commercial value would depend on the proposed initiatives progressing.

Vmoto FY26 revenue guidance of $73.5 million to $85 million, representing growth of 57%-82% on FY25, provides the financial backdrop against which the Saudi operational hub is being assessed, with the company identifying cost efficiency and access to new funding as two of the primary value levers the partnership could activate.

Charles Chen, Managing Director

“Saudi Arabia is increasingly positioned as a key economic and investment hub connecting the GCC, the broader Middle East and Africa. We see strong potential to leverage the Kingdom’s strategic location, developing infrastructure and supportive investment environment to establish a regional platform for Vmoto’s electric mobility business. We will now work closely with Alsak through the assessment and planning process to determine the most commercially appropriate structure, investment requirements and implementation roadmap. While there can be no assurance at this stage that the proposed initiatives will proceed, we are excited about the potential of this partnership and look forward to updating shareholders as the discussions progress.”

What this means for investors and what comes next

For shareholders, the framework offers a potential pathway to expand Vmoto’s addressable market, improve supply efficiency and open access to new funding. Each of these outcomes remains contingent on execution and the signing of definitive agreements.

Vmoto and Alsak will now work through the assessment and planning process to determine the most commercially appropriate structure, investment requirements and implementation roadmap.

The Saudi Arabia framework follows a pattern of Vmoto structuring regional market entry through local partnerships: the Vmoto Thailand joint venture with Tora Energy Group similarly used a staged, capital-light model, with Tora acquiring a 49% stake and contributing local dealer networks and government relationships while Vmoto retained majority control.

Vmoto has stated it will update shareholders as discussions progress.

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