Key Takeaways
- • The King Salman Automotive Cluster in King Abdullah Economic City (KAEC) is expected to contribute more than SAR 92 billion ($24.5 billion) to Saudi Arabia's non-oil GDP by 2035, according to KAEC data.
- • 73% of industrial land in the Masarat Mobility Park has been leased, with six Tier-1 supplier factories in development, including five at the Tasaru supplier accelerator and one by FPI Gulf.
- • Ceer plans to produce seven vehicle models by 2030, while Lucid's KAEC plant, opened in September 2023, is developing a second facility to build fully built vehicles by 2027.
- • The National Automotive and Vehicles Academy (NAVA) has trained more than 1,200 technicians and delivered over 90,000 training days in its first two years.
Summary
The King Salman Automotive Cluster, located in King Abdullah Economic City on Saudi Arabia's Red Sea coast, is designed to move the Kingdom's automotive sector beyond vehicle assembly toward an integrated ecosystem spanning vehicle production, component manufacturing, logistics and workforce development. The area was officially named the cluster in February 2025 under directives from Crown Prince Mohammed bin Salman. KAEC projects that the ecosystem will contribute more than SAR 92 billion ($24.5 billion) to non-oil GDP by 2035 and will support direct and indirect employment and higher exports.
KAEC Chief Operating Officer Majed Abdullah Matbouly told Asharq Al-Awsat that the cluster is a strategic pillar of Saudi economic transformation, linking manufacturers, component suppliers and training institutions. The project aligns with the Public Investment Fund's (PIF) strategy to expand automotive and transportation investment through joint ventures with international manufacturers, and with the National Industrial Development and Logistics Program.
Anchor projects include Ceer, Saudi Arabia's first electric vehicle brand, established through a PIF and Foxconn partnership using technology licensed from BMW, which awarded construction contracts in 2024. Lucid Motors' KAEC plant, the company's first factory outside the United States, opened in September 2023. Hyundai's Middle East Engine Manufacturing project began construction in May 2025 and plans to recruit and train Saudi talent throughout 2026. A PIF and Pirelli agreement will establish a tire plant. In the supply chain, Masarat Mobility Park is attracting Tier-1 suppliers, and workforce training is being pursued in parallel through NAVA, established in 2024.
KAEC Chief Operating Officer Majed Abdullah Matbouly told Asharq Al-Awsat that the cluster is a strategic pillar of Saudi economic transformation, linking manufacturers, component suppliers and training institutions. The project aligns with the Public Investment Fund's (PIF) strategy to expand automotive and transportation investment through joint ventures with international manufacturers, and with the National Industrial Development and Logistics Program.
Anchor projects include Ceer, Saudi Arabia's first electric vehicle brand, established through a PIF and Foxconn partnership using technology licensed from BMW, which awarded construction contracts in 2024. Lucid Motors' KAEC plant, the company's first factory outside the United States, opened in September 2023. Hyundai's Middle East Engine Manufacturing project began construction in May 2025 and plans to recruit and train Saudi talent throughout 2026. A PIF and Pirelli agreement will establish a tire plant. In the supply chain, Masarat Mobility Park is attracting Tier-1 suppliers, and workforce training is being pursued in parallel through NAVA, established in 2024.
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