On October 22, Saudi Arabia’s Public Investment Fund and South Korea’s Hyundai Motor Company announced the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. With a total share in ownership of 70 percent held by Saudi Arabia’s Public Investment Fund (PIF) and 30 percent owned by Hyundai, the project cost is projected to exceed $500 million.
According to the agreement details, construction will take place next year, and the manufacturing plant is expected to begin operations in 2026. As reported by Hyundai, the plant will produce both internal combustion engine and electric cars, with an annual production capacity of up to 50,000 units.
“Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem - one of our 13 priority sectors. Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia's automotive and mobility value chain,” said Yazeed A. Al-Humied, deputy governor and head of MENA investments at PIF.
As a result of these agreements, PIF aspires to develop national and regional champions in the automotive and mobility sectors of Saudi Arabia by strengthening local skills, attracting cutting-edge technology, and generating highly qualified employment. Furthermore, PIF’s investments are also boosting the automotive supply chain by localizing automotive component manufacture in Saudi Arabia.