Hyundai signs MoU to build assembly plant in Saudi Arabia
The Saudi Ministry of Industry and Mineral Resources signed a memorandum of understanding with Hyundai Motor of South Korea.
The MoU with the Korean car manufacturer aims to enhance joint cooperation for the auto industry in the region.
This cooperation with Hyundai will achieve the goals of the national strategy for industry in developing local manufacturing capabilities.
This decision is also in line with the objectives of the Kingdom’s Vision 2030, which seeks to diversify the economic base in the Kingdom.
The ministry of industry stated in a statement on Saturday that the MoU with Hyundai provides for planning to construct a full assembly plant (with the CKD system) for electric cars and internal combustion engine cars, to be based in Saudi Arabia
It is noteworthy that the national strategy for industry aims to localize the automotive sector and increase investment opportunities in it.
Light vehicle sales in the Kingdom are expected to grow by 2.2% over the next decade.
The national strategy also aims for the localization of the sector to bring great benefits to the Kingdom, as expectations indicate that the growth of the car market will double at the global rate during the next ten years.
The Kingdom is interested in developing this sector, which will lead to attracting, developing and developing the workforce, with a focus on products with high added value.
The ministry stated that this comes after Hyundai showed great interest in joint investment opportunities with the Kingdom to work towards achieving leadership in business and projects that ensure safety and environmental sustainability.
