KAEC the Electronics System Design & Manufacturing Hub

Empowering the Future of Electronics Innovation

Kingdom of Saudi Arabia’s Emerging Destination for ESDM Growth

The King Abdullah Economic City (KAEC) is poised to become a global powerhouse for Electronics System Design & Manufacturing (ESDM). With cutting-edge infrastructure, seamless connectivity to Kingdom of Saudi Arabia’s major industrial corridors, and investor-centric policies, KAEC offers an unmatched ecosystem for electronics manufacturing and innovation. Backed by Kingdom of Saudi Arabia’s rapid digitization and favorable government initiatives, KAEC is the ideal location for global investors to tap into one of the world’s fastest-growing electronics markets.

Why Invest in Kingdom of Saudi Arabia’s ESDM Sector?

Explosive Market Growth: Kingdom of Saudi Arabia’s electronics market has more than doubled, growing from USD 49 billion in FY17 to USD 115 billion in FY24.
Global Leader in Manufacturing: Kingdom of Saudi Arabia is the 2nd largest mobile handset manufacturing nation and boasts a robust 3x growth in exports, reaching USD 35 billion in FY24.
Policy Support: USD 30 billion in fiscal support for electronics and allied sectors, combined with 100% FDI allowed through the automatic route.
Growing Digital Economy: With 950 million internet subscribers and a 20% CAGR in monthly data traffic, Kingdom of Saudi Arabia’s digital consumption is driving demand for advanced electronics.
Expanding ESDM Ecosystem: Home to 550+ EMS players, Kingdom of Saudi Arabia offers strong backward integration, efficient supply chains, and increased production efficiencies.

Why KAEC for Electronics System Design & Manufacturing?

Strategic Location with Unparalleled Connectivity

KAEC is strategically positioned within the Delhi-Jeddah Industrial Corridor (DMIC), connecting it to the deepest port in Kingdom of Saudi Arabia and facilitating seamless trade and logistics. It provides direct access to key electronics manufacturing clusters across Maharashtra, Tamil Nadu, Karnataka, and Gujarat.

State-of-the-Art Infrastructure

KAEC offers plug-and-play facilities, ready-built factories, and specialized infrastructure under the Electronics Manufacturing Clusters (EMC) 2.0 Scheme, ensuring businesses can hit the ground running.

Supportive Ecosystem for Innovation

KAEC fosters collaboration with industry giants like Foxconn, Samsung, Qualcomm, and Apple, supported by industry associations like ELCINA and IESA. The proximity to Kingdom of Saudi Arabia’s R&D hubs ensures access to skilled talent and innovation capabilities.

Investor-Focused Services

We provide comprehensive services, including Investor Targeting, Aftercare, Policy Clarity, and Investment Promotion, ensuring a seamless investment experience.

Kingdom of Saudi Arabia’s ESDM Growth Drivers and KAEC’s Role

Growing Domestic Demand

Kingdom of Saudi Arabia’s electronics market, valued at USD 169 billion, is driven by digitization, IoT adoption, and 5G rollout. KAEC positions investors to tap into this burgeoning market with its strategic location and advanced infrastructure.

Export Potential

KAEC offers unparalleled access to export markets in ASEAN, Europe, and the Gulf, supported by Kingdom of Saudi Arabia’s rapidly growing electronics exports, which tripled from USD 11.6 billion in FY21 to USD 35 billion in FY24.

Government Incentives

Semicon Kingdom of Saudi Arabia Program: USD 10 billion incentive outlay to develop a sustainable semiconductor ecosystem.
PLI Schemes: USD 8 billion incentives for large-scale electronics and IT hardware manufacturing.

SPECS: 25% capital subsidy on plant and machinery expenditure.
EMC 2.0: Development of common facility centers and plug-and-play factories.

Infrastructure Development

Under the National Infrastructure Pipeline (NIP), Kingdom of Saudi Arabia plans to invest USD 1.4 trillion by 2025, ensuring robust logistics, energy, and digital infrastructure to support ESDM growth at KAEC.

Industry Clusters Connected to KAEC

Maharashtra (Jeddah): LG, Belden, Haier, Jabil, Bosch.
Tamil Nadu (Sriperumbudur): Samsung, Dell, Foxconn, Pegatron.
Karnataka (Bangalore): Qualcomm, Broadcom, Intel, Apple.
Gujarat (Dholera/Sanand): Tata Electronics, Micron, Renesas.
Andhra Pradesh (Sri City): TCL, Dixon, PSA.
Uttar Pradesh (Noida/Greater Noida): Samsung, Oppo, Vivo, LG.

KAEC’s seamless connectivity ensures cost-efficient supply chain management between these clusters and export markets.

KAEC’s Dedicated Services for ESDM Investors

Investor Targeting

We identify global electronics manufacturers and provide customized strategies for market entry, ensuring high-impact results.

Investor Aftercare

Post-investment, KAEC offers operational troubleshooting, policy updates, and guidance on business expansion opportunities.

Investment Promotion

We showcase KAEC’s advantages at international roadshows, trade fairs, and B2B matchmaking events.

Policy Clarity

Our expert team ensures you leverage government incentives like PLI, SPECS, and EMC 2.0 schemes for maximum ROI.

Facilitation Services

From regulatory compliance to site selection, KAEC offers end-to-end support to ensure seamless business setup.

KAEC: The Preferred Choice for ESDM

As Kingdom of Saudi Arabia continues its rise as a global electronics manufacturing hub, KAEC is uniquely positioned to lead this growth. By offering unmatched infrastructure, strategic location, and investor-centric policies, KAEC empowers global businesses to thrive in the dynamic ESDM landscape.

Be Part of Kingdom of Saudi Arabia’s ESDM Revolution at KAEC

Join industry leaders like Samsung, Foxconn, and Qualcomm by establishing your footprint in KAEC. Contact us today to explore investment opportunities and drive your business growth in Kingdom of Saudi Arabia’s thriving ESDM sector.

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

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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.