South Korean President Yoon Seok-yue announced on Sunday that South Korea's Hyundai Motor Group will cooperate with Saudi Arabia's sovereign wealth fund (PIF) to build an automobile factory in Saudi Arabia.
The factory, which will be located in Riyadh, will have an annual production capacity of 50,000 electric vehicles and gasoline-powered vehicles and will become the first Korean automobile factory in the Middle East.
PIF will hold 70% of the new joint venture's shares, and Hyundai Motor will hold the remaining 30%. The total investment in the project will exceed US$500 million.
Hyundai Motor Group, currently the world's third-largest auto group by sales, is starting to produce cars in Saudi Arabia. Saudi Arabia has been working hard to wean its economy off oil and plans to produce more than 300,000 cars a year by 2030.
"Hyundai Motor will also become a strategic technology partner to support the development of the new plant by providing technical and commercial assistance," the joint statement said.
Yin Xiyue said that the first batch of cars will roll off the assembly line in 2026, but did not disclose details about the specific location of the factory and the specific models of cars produced.
The construction of the Hyundai car factory is part of a broader effort by Saudi Arabia to diversify its economy and attract foreign investment. The country has also announced plans to build new cities and develop new industries, such as tourism and renewable energy.
The Hyundai car factory is a significant development for the Saudi economy and for the global automotive industry. It will create jobs and boost economic growth in Saudi Arabia, and it will give Hyundai Motor a foothold in the growing Middle Eastern market.
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