KEZAD Group and ROX Motor plan to build one of the Middle East’s first AI-enabled vehicle manufacturing facilities in Abu Dhabi’s Musaffah industrial zone.
KEZAD Group has agreed to lease land to ROX Motor in KEZAD Logistics Park, Musaffah. The site will house a new vehicle manufacturing facility. ROX describes it as one of the Middle East’s earliest AI-enabled plants of its kind. The agreement reflects Abu Dhabi’s broader push to grow its industrial base beyond oil and gas.
What will the facility actually look like?
The planned plant will cover 10,000 square metres. ROX expects it to begin operating in the second half of 2026. Therefore, the build timeline runs to roughly two years from now. The facility will sit within an established logistics park, giving it direct access to transport infrastructure. As a result, ROX will have a ready platform for both regional distribution and export.
ROX has set a production target of 300,000 vehicles per year by 2030. That figure would place the project among the more ambitious automotive manufacturing plans in the UAE to date. The company is focusing on luxury all-terrain SUVs. Consequently, the facility is likely to produce higher-value vehicles rather than volume city cars.
How does this fit Abu Dhabi’s industrial strategy?
Abu Dhabi has been working to raise the share of non-oil activity in its economy for some years. KEZAD’s automotive strategy is part of that effort. The group is building what it describes as a global auto hub in Abu Dhabi. This combines industrial land, logistics connectivity, and manufacturing support in one location.
Industry reports suggest the ROX project could contribute as much as 10 per cent to the UAE’s Operation 300Bn industrial strategy. Operation 300Bn is the UAE government’s plan to grow the industrial sector’s contribution to GDP to 300 billion dirhams by 2031. Meanwhile, ROX has also been working with the Abu Dhabi Investment Office and KEZAD on a semi-knocked-down assembly facility for international markets. Together, these moves suggest Abu Dhabi is constructing a wider manufacturing ecosystem around the new investment.
Why does intelligent manufacturing matter here?
The facility is described as AI-enabled, which in vehicle production typically means automated quality control, predictive maintenance, and data-driven assembly processes. In addition, industry reports link the project to new-energy vehicle production paired with intelligent manufacturing systems. For example, AI-driven production lines can reduce defect rates and improve output consistency at scale. However, the specific technologies ROX will deploy have yet to be confirmed publicly.
What does this mean for electric vehicle buyers in the Gulf?
A local production base changes the economics of EV ownership in meaningful ways. Supply chains become shorter. Consequently, vehicles can reach buyers faster and at lower logistics cost. Local manufacturing also gives regional buyers more influence over specification and availability.
Demand for cleaner, technology-heavy vehicles is rising across the Gulf. Therefore, a production facility inside the region is well-timed. For EVLife readers considering an EV purchase in the UAE, local manufacturing is worth watching. It can affect pricing, delivery times, and long-term parts availability.
Is the project on track?
The land lease agreement is signed. ROX has confirmed the 2026 operational target. In addition, the involvement of the Abu Dhabi Investment Office suggests institutional backing beyond a simple commercial deal. However, vehicle manufacturing projects at this scale carry execution risk. Regulatory approvals, supply chain setup, and workforce recruitment all take time.
If the project stays on schedule, Abu Dhabi will become a production centre for advanced vehicles. The 300,000-unit annual target by 2030 is substantial. As a result, the facility could export well beyond the UAE. That would be a considerable shift for a region that has historically imported most of its vehicles.
The broader picture is straightforward. Abu Dhabi is investing in industrial capacity, and automotive manufacturing is a clear priority. For the EV market in the Gulf, that investment could reshape how vehicles are sourced, priced, and delivered for years to come.
