Ceer, Saudi Arabia's first electric vehicle brand, has signed a land purchase agreement worth 359 million Saudi riyals ($96 million) with Emaar, the Economic City, for a site at King Abdullah Economic City (KAEC).
The land, close to King Abdullah Port, will be used to develop Ceer's manufacturing plant and will cover 1 million square metres.
Once the factory is complete, it will create thousands of direct and indirect jobs, the majority of which will be filled by Saudi Arabian citizens, Ceer said in a statement.
Construction is set to begin early next year, with Ceer vehicles scheduled to be available from 2025.
"We have found a place that meets all of our needs," said Ceer chief executive James DeLuca.
"KAEC offers us a great location with world-class logistics, effective access for our global and Saudi-based suppliers and an ideal location to base and develop our future workforce."
Ceer is a joint venture between Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF) and Taiwan's Foxconn.
Its establishment is in line with PIF's strategy to unlock the capabilities of promising sectors in Saudi Arabia and contribute to the Saudi Vision 2030.
Ceer was launched this month by Saudi Crown Prince Mohammed bin Salman, who is also the PIF chairman.
The company is projected to directly contribute $8 billion to Saudi Arabia’s economy by 2034.
Ceer will also support Saudi Arabia’s efforts to reduce carbon emissions and drive sustainability to address the effects of climate change.
It said the factory would minimise energy, water usage and work towards making it a zero-waste-to-landfill site.
Ceer will design, manufacture and sell vehicles — including saloons (sedans) and sports utility vehicles — for consumers in Saudi Arabia, as well as the entire Middle East and North Africa region.
It will license component technology from German car maker BMW for use in the vehicle development process.