Ministry of Investment Announces the Start of Construction on Lucid's Advanced Factory in the Kingdom
The Ministry of Investment announced today that electric vehicle company Lucid has begun construction of an advanced factory in the Kingdom, with annual production capacity of 155,000 cars and investment exceeding SAR 12.3 billion. His Excellency the Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih, explained that beginning the development of an electric vehicle industry reflects the Kingdom's strong commitment to attracting high-quality investment that diversifies the economy, transfers technology, and develops young Saudis' skills. It also reflects the Kingdom's global commitment to promoting a green economy and reducing carbon emissions.
His Excellency welcomed Lucid's announcement that it was beginning construction of its factory, saying it affirms the competitiveness of the Kingdom's business environment against the highest international standards and strengthens its position as a preferred destination for high-quality, advanced investments. He emphasized that modern technologies and innovations drive the global economy and shape its future, and that the Kingdom can offer investment opportunities and support to investors and companies seeking to help shape that future and contribute to Saudi economic diversification under Vision 2030.
Regarding the Kingdom's efforts to develop industry and transport, the Minister of Investment said that developing electric vehicle manufacturing is part of wider efforts to advance the industrial and advanced-manufacturing sectors and play a leading, influential role in shaping the future of transport and urban life worldwide. Transport also plays an important role in the Kingdom's transition to a greener economy and its efforts to fulfill its commitment to net zero by 2060. Lucid's factory will produce four different electric vehicle models beginning in 2023 and reach its full capacity of 155,000 vehicles in 2028. Two models will be exclusive to the planned Saudi factory, and approximately 95% of its output will be exported, supporting the Kingdom's balance of payments, strengthening supply chains, and opening new investment opportunities.
Lucid's electric vehicle factory will be located in the Industrial Valley at King Abdullah Economic City. The city offers competitive advantages and solutions for investors and companies in energy requirements and local supply chains, while the factory's location provides easy access to global logistics services.
The Kingdom recently announced its commitment to purchase 50,000 electric vehicles, with an option to buy 100,000 additional vehicles over the next ten years. Deliveries of the factory's electric vehicles to the Saudi market are expected to begin this year. The factory will meet growing demand for electric vehicles in the Kingdom and the region and strengthen export capacity from Saudi Arabia to Middle Eastern markets.
The Kingdom has seen rising foreign direct investment in recent years. In 2021, FDI reached its highest level in more than a decade, driven by the Kingdom's ambitious economic transformation agenda under Vision 2030 and the National Investment Strategy launched the previous year.
