Construction has commenced on Hyundai’s first manufacturing plant in the Middle East, located in Saudi Arabia’s King Abdullah Economic City. This significant project is a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and South Korea’s Hyundai Motor Company.
The Hyundai Motor Manufacturing Middle East (HMMME) plant represents a strategic partnership, with PIF holding a 70% stake and Hyundai the remaining 30%. This collaboration aims to produce 50,000 vehicles annually, including both fuel-powered cars and electric vehicles, starting in the fourth quarter of 2026.
Boosting Saudi Arabia’s Automotive Industry
Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, highlighted the project’s significance. He stated, “This milestone strengthens Saudi Arabia’s automotive industry and accelerates its automotive ecosystem through strategic partnerships.” The plant will create thousands of jobs and facilitate knowledge transfer and skills development.
Local production of Hyundai vehicles will significantly boost Saudi Arabia’s manufacturing sector. Hyundai’s market share in the Kingdom has been steadily growing, particularly in the mid- to upper-mid range segments. This initiative aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce oil dependency.
Future Prospects and Economic Impact
The new manufacturing plant is expected to attract further investments and enhance the automotive and mobility ecosystem in Saudi Arabia. With an estimated investment exceeding $500 million, the plant will play a crucial role in the region’s economic development.
Hyundai’s manufacturing plant in Saudi Arabia marks a significant step forward for the automotive industry in the Middle East. This project not only strengthens the local economy but also positions Saudi Arabia as a key player in the global automotive market.
