King Abdullah Economic City is situated adjacent to the Tropic of Cancer. Though in the midst of a desert, the influence of the Red Sea ensures that the city escapes from the typically harsh desert climate.

Its position connects it to international locations across the globe as well as other countries across the Middle-east. Just 120 kms north of the commercial center of Jeddah and lying between the Holy Cities of Makkah and Madinah, KAEC can link readily to most other cities in the country over land.

The Red Sea is a relatively pristine eco-system, with its waters ranking second in visibility after the Antartic. It is a sought-after diving destination, with rich flora and fauna as well a natural coral reef off the coast of KAEC. In and around KAEC are also located numerous picturesque lagoons and seasonal water reservoirs.