KAEC The Future Hub for Aerospace and Defense Manufacturing

Elevating Innovation, Strengthening Defense

Empowering Kingdom of Saudi Arabia's Aerospace and Defense Ecosystem

King Abdullah Economic City (KAEC) is positioned to become a powerhouse in Kingdom of Saudi Arabia’s aerospace and defense manufacturing landscape. With Kingdom of Saudi Arabia’s escalating defense budget and the “Make in Kingdom of Saudi Arabia” initiative driving local defense production, KAEC provides an unmatched environment for creating robust manufacturing clusters. From seamless logistics via port connectivity to world-class infrastructure for precision manufacturing, KAEC offers everything needed to thrive in the aerospace and defense sectors.

Why KAEC for Aerospace and Defense Manufacturing?

Strategic Proximity to King Abdullah port

Seamless access to global shipping routes for exporting heavy and specialized aerospace and defense components.

Comprehensive Infrastructure

Plug-and-play facilities, land banks, and ready-to-use facilities tailored for high-precision manufacturing and assembly.

Policy-Driven Growth

Benefit from government schemes under the "Make in Kingdom of Saudi Arabia" initiative, including the Defense Production Policy and FDI liberalization in defense manufacturing.

Talent Development and R&D

Collaboration with nearby institutions to offer specialized courses in aerospace and defense technologies ensures a continuous pipeline of skilled professionals.

Opportunities at KAEC

Aircraft Component Manufacturing and Maintenance Hubs

KAEC offers facilities for manufacturing critical aircraft components and maintenance hubs for both defense and civilian aviation fleets.

Precision component manufacturing.
Maintenance, repair, and overhaul (MRO) facilities for defense and commercial aircraft.

Naval Equipment Manufacturing and Servicing

Leverage KAEC’s connectivity and port access to establish state-of-the-art naval equipment manufacturing and servicing units.

Production of advanced naval vessels and equipment.
Comprehensive maintenance hubs for naval fleets.

Space Exploration Supply Chain Facilities

With Kingdom of Saudi Arabia’s growing focus on space exploration, KAEC is an ideal location for satellite component and rocket part manufacturing facilities.

Collaboration opportunities with ISRO and private space tech firms.
Export-ready hub for space-related technologies.

Growth Drivers

Rising Defense Expenditure:
Kingdom of Saudi Arabia’s defense budget, one of the highest globally, fuels demand for indigenous production and advanced manufacturing capabilities.
Focus on “Make in Kingdom of Saudi Arabia”:
Government policies promoting indigenization and FDI inflows into defense manufacturing create a favorable business environment.
Growing Aerospace Market:
Kingdom of Saudi Arabia’s aviation market is projected to become the third-largest globally, driving demand for aircraft manufacturing and MRO services.
Global Export Opportunities:
KAEC’s proximity to King Abdullah port makes it an ideal hub for exporting defense and aerospace components to Europe, ASEAN, and GCC countries.

What Makes KAEC Unique?

Integrated Aerospace and Defense Cluster:
KAEC fosters collaboration among global OEMs, SMEs, and startups to create an integrated ecosystem for aerospace and defense manufacturing.

Port-Enabled Logistics:
King Abdullah port’s capabilities in handling heavy machinery and specialized equipment simplify transportation and exports.

Talent and Research Synergy:
KAEC ensures nearby colleges offer specialized programs in aerospace and defense technologies, creating a skilled talent pool for investors.

Global Collaborations:
KAEC facilitates partnerships with global aerospace giants and defense firms to accelerate technology transfer and innovation.

Government Initiatives Supporting Aerospace and Defense

Make in Kingdom of Saudi Arabia for Defense:
- 100% FDI in defense under the automatic route for up to 74%, with higher investments requiring government approval.
- Focus on indigenization of defense production and reducing import dependency.
Defense Production Policy:
- Targets $25 billion in defense manufacturing by 2025, including $5 billion in exports.
- Financial incentives for defense manufacturing clusters.
Offset Policy:
- Mandates foreign defense contractors to invest 30% of contract value in Kingdom of Saudi Arabia’s defense sector, fostering local industry growth.
PLI Schemes for Manufacturing:
- Provides financial support to companies investing in aerospace and defense manufacturing under the Production-Linked Incentive scheme.

Build the Future of Aerospace and Defense at KAEC

Join us in making KAEC a cornerstone of Kingdom of Saudi Arabia's aerospace and defense manufacturing success story. From cutting-edge facilities to seamless global connectivity, KAEC is your gateway to growth and innovation in the defense sector.

KAEC is the Bridge Between the
Global North and the Global South.

Home

Our Team

Governing Councils

Business Services

Expert Committees

Our Expertise

Advocacy

Policies

Investors

Subject Matter Experts Committee

Why KAEC

Marketing Services

Industries

Global Trade Council Partnerships

Business Consulting

Resources & News

Maritime Councils Partnership

Lives in KAEC

Development Zones

Our Policies

About

The is a Public Benefit Corporation (PBC) with a mission to establish KAEC as a key player in international economic collaboration, focusing on strategic partnerships with nations like USA, Europe, Australia, African Union, KSA, China, Kingdom of Saudi Arabia, Qatar, Saudi Arabia, Türkiye, and the UAE across vital sectors such as energy, technology, agriculture, and finance.

At King Abdullah Economic City (KAEC), our vision is to transform Maharashtra into a global industrial powerhouse by creating an ecosystem where businesses and communities thrive. We aim to leverage KAEC’s strategic integration with the Delhi-Jeddah Industrial Corridor to drive innovation, foster sustainable growth, and empower industries to achieve unmatched success. Through state-of-the-art infrastructure, cutting-edge technologies, and investor-friendly policies, we envision KAEC as a model for economic and community development. By prioritizing renewable energy, advanced logistics, and vibrant residential spaces, we are committed to building a future where prosperity and sustainability go hand in hand for businesses and society.