Rox has started production in Abu Dhabi as investment agencies, port operators and economic zones work to build a UAE automotive manufacturing base
Chinese-linked carmaker Rox has begun vehicle production at Khalifa Economic Zones Abu Dhabi (Kezad). The start-up represents the most significant output so far from the UAE’s efforts to build an automotive manufacturing industry.
The first three Rox Adamas vehicles, carrying the Made in the Emirates mark, came off the production line at the company’s new Abu Dhabi facility in early September. The 10,000-square-metre plant is expected to reach an initial capacity of 20,000 vehicles a year by 2027, rising to 300,000 vehicles a year by 2030.
The facility can sub-assemble more than 80 types of vehicle components and also carries out complete vehicle assembly, calibration, rain and road testing, and final inspection. Rox moved its global headquarters to the UAE last year and plans to supply local and export markets.
The project forms part of Rox’s partnership with the Abu Dhabi Investment Office (Adio) and is supported by the UAE Ministry of Industry & Advanced Technology. Kezad Group signed the lease agreement for the facility in May.
Programme targets
The Rox plant is the first major output of a state-led strategy that has gathered pace over the past 18 months. Adio launched its automotive programme at the Make it in the Emirates forum in May 2025, with the aim of creating a hub for vehicle manufacturing and assembly, research and development, restoration, auctions and luxury cars.
The programme is projected to contribute AED100bn ($27.2bn) to Abu Dhabi’s GDP by 2045, attract more than AED8bn ($2.2bn) in foreign direct investment and create 7,000 skilled jobs. Adio has also introduced an automotive artificial intelligence curriculum with universities to develop Emirati talent in the sector.
In October last year, Adio and AD Ports Group agreed to work with Netherlands-based Stellantis to develop the emirate’s automotive ecosystem. The memorandum of understanding covers expansion into Middle East and Africa markets, an ecosystem for autonomous taxi services, and research into next-generation mobility technologies.
Under the agreement, Stellantis will explore investment opportunities in Abu Dhabi, while Adio and AD Ports Group will provide market intelligence and logistics support. The announcements did not include a commitment to build a production facility.
Kezad already hosts smaller electric vehicle (EV) operations. In 2024, UAE-headquartered NWTN signed a lease for a Kezad facility with capacity to assemble 5,000-10,000 semi-knocked-down EVs a year, with plans to expand to 50,000 units in a second phase.
Trading hub
Dubai has focused on vehicle trade rather than manufacturing. In November last year, Dubai Municipality signed a partnership agreement with DP World’s Economic Zones division to establish and manage the Dubai Auto Market, a 22 million-square-foot complex with more than 1,500 showrooms that is designed to handle over 800,000 new and used vehicles a year.
Enabling works are under way, carried out by local contractor Rad International Road Construction, with US-based Aecom serving as project consultant. Sheikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum, first deputy ruler of Dubai, said at the launch that the project would foster a cluster of light industries for vehicle assembly and trade.
The market builds on an established base. Jebel Ali Free Zone hosts more than 940 automotive and spare-parts companies, including Ford, General Motors, Honda, Hyundai, Nissan and Volkswagen. In 2022, M Glory Group laid the foundation stone for a AED1.5bn ($408m) EV plant at Dubai Industrial City, with a planned capacity of 55,000 cars a year.
Regional competition
The UAE is not alone in pursuing automotive manufacturing. In Saudi Arabia, the Public Investment Fund (PIF) owns 70% of Hyundai Motor Manufacturing Middle East, which will roll out its first vehicle by Q4 2026 and targets annual production of 50,000 vehicles. Ceer, the kingdom’s first EV manufacturer, intends to roll its first vehicle off the production line in late 2026.
Saudi Arabia’s National Industrial Strategy aims to attract three to four manufacturers capable of producing more than 300,000 vehicles a year within a single automotive cluster. In Qatar, JTA International Investment Holding said last month that it was working with the UK’s Watt Electric Vehicle Company to set up a factory.
The two leading Gulf economies are taking different approaches. Saudi Arabia has relied on direct PIF shareholdings in manufacturers. In the UAE, investment offices, port groups and economic zone operators have led the effort, using land, logistics and incentives to attract privately owned carmakers.
Scaling up is the next test. Rox’s plan to increase output fifteen-fold between 2027 and 2030 will show whether Abu Dhabi’s model can support volume manufacturing. Achieving it would give the UAE production capacity comparable to the level Saudi Arabia is targeting across its entire automotive cluster.
