KAEC gears up to become automotive capital of the region, CEO says

JEDDAH, May 29 (Arab News): The King Abdullah Economic City is all poised to become the automotive capital of the region, with car companies evincing interest in setting manufacturing facilities in the city, said its CEO Cyril Piaia.

The megacity has been finalising deals with car manufacturers after the US-based electric vehicle manufacturer Lucid Motors signed an agreement to build a production factory with an annual capacity of 150,000 zero-emission EVs.

"Those deals are very active; they might be announced very soon," Piaia told Arab News in an exclusive interview.

Lucid Motors, backed by the Public Investment Fund, is delivering its first factory outside the US, which will make up half of the Kingdom's plan to produce 300,000 vehicles annually by 2030.

"All focus today is to position the industrial valley as the automotive capital of the region," Majid Matbouly, head of the industrial valley at KAEC, told Arab news.

The EV manufacturer aims to export 85 per cent of its production outside the Kingdom, benefiting from the city's port located on the Red Sea.

The megacity has a ready-built residential infrastructure for the future employees of Lucid Motors, which includes schools and recreational and entertainment avenues.

"We actually have people from Lucid who already started building their homes here," Matbouly added.

KAEC is also strategically placed for auto companies, given its full-service commercial port and growing connectivity with other parts of the world.