Hyundai and PIF Launch Saudi Arabia’s First Car Factory
Hyundai Motor Company and the Public Investment Fund (PIF) have officially broken ground on a new manufacturing plant in Saudi Arabia. Located at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC), this factory represents Hyundai’s first production facility in the Middle East. The plant aims to produce 50,000 vehicles annually, including both internal combustion engine (ICE) and electric vehicles (EVs), with the first car expected to roll off the line by late 2026.
Strategic Partnership to Boost Saudi Automotive Industry
The joint venture, Hyundai Motor Manufacturing Middle East (HMMME), is jointly owned by PIF (70%) and Hyundai (30%). This collaboration marks a significant step forward for Saudi Arabia’s automotive ambitions. Yazeed Alhumied, Deputy Governor and Head of MENA Investments at PIF, described the project as a milestone that will strengthen the local automotive sector. He emphasised that PIF is committed to nurturing Saudi Arabia’s automotive ecosystem by fostering local capabilities, introducing cutting-edge technology, and creating skilled job opportunities.
Furthermore, Hyundai’s Vice Chair, Jaehoon Chang, highlighted the importance of the venture for both Saudi Arabia and Hyundai. He pointed out that this initiative opens a new chapter of future mobility and innovation, while also supporting Saudi Vision 2030 by developing local talent with advanced skills.
Building a Local Automotive Future
HMMME’s factory will focus on leveraging Saudi Arabia’s local workforce, creating thousands of jobs, and facilitating knowledge transfer. This localisation effort aims to accelerate the Kingdom’s automotive and mobility ecosystem and contribute to the country’s industrial growth. Additionally, the project forms part of a broader PIF strategy to position Saudi Arabia as a global automotive hub.
By combining technology, talent development, and production capacity, this joint venture lays the foundation for a more sustainable and innovative automotive industry in the region. As a result, Saudi Arabia moves closer to realising its goal of diversifying its economy and expanding into advanced manufacturing sectors.
