PIF-Backed Lucid Motors Secures Permit for Manufacturing Unit in KAEC, Marking a Milestone in Saudi Arabia’s Automotive Industry
In a significant stride towards economic diversification and the transformation of the national transportation sector, the Economic Cities and Special Zones Authority (ECZA) has granted Lucid Motors a permit to establish a manufacturing facility within King Abdullah Economic City (KAEC).
A commemorative ceremony was held at the ECZA’s offices in KAEC to celebrate this momentous development, as stated in an official press release.
Lucid Motors, with strong backing from the Public Investment Fund (PIF), is poised to establish its first factory outside the United States, representing a pivotal component of Saudi Arabia’s ambitious plan to manufacture 300,000 vehicles annually by 2030.
King Abdullah Economic City has proactively invested in creating residential infrastructure to accommodate the prospective employees of Lucid Motors, which includes the provision of schools and recreational and entertainment amenities.
The city has also placed significant emphasis on sustainability, positioning itself as an attractive destination for environmentally-conscious companies looking to fulfill their environmental commitments.
Commenting on this groundbreaking achievement, Nabil Khojah, the Secretary-General of ECZA, expressed, “The establishment of a world-class e-vehicle manufacturing unit at KAEC SEZ in a short time frame demonstrates the efficiency, capabilities, and strengths of the special economic zones in the Kingdom.” He further underscored that this achievement exemplifies the conducive business environment that the Kingdom of Saudi Arabia offers. “Today, we take a step toward creating a futuristic transportation landscape while reducing emissions and promoting clean and sustainable mobility.”
Faisal Sultan, Vice President and Middle East Managing Director of Lucid, remarked, “As the Kingdom’s first-ever e-vehicle manufacturing facility and Lucid’s inaugural international plant, the facility will pave the way and set the standard for the automotive industry. It will also provide the Saudi Arabian market with game-changing, advanced e-vehicles assembled in Saudi Arabia. As we collectively work toward Vision 2030 and a more sustainable and diversified economy, we look forward to attracting, training, and retaining a brand-new workforce of automotive professionals.”
Lucid Motors intends to export a substantial 85 percent of its production outside the Kingdom, leveraging the strategic location of the city’s port on the Red Sea.
Cyril Piaia, CEO of Emaar, The Economic City, the master developer of KAEC, expressed confidence in Lucid’s pivotal role in achieving the city’s aspiration to become the automotive capital of the region. He added that Lucid’s presence would have a positive impact on the local economy, creating jobs, fostering technological advancements, and attracting new investments to KAEC.
The state-of-the-art manufacturing facility occupies an expansive area exceeding 1.35 million square meters, accounting for approximately 31 percent of the total space within KAEC SEZ’s dedicated auto hub, specially allocated for the automotive industry. This remarkable initiative marks a significant leap forward for Saudi Arabia’s automotive sector and underscores the nation’s commitment to diversifying its economy and fostering innovation in the automotive industry.
