It will be located in Saudi Arabia
South Korean company Hyundai Motor Group will build an automobile plant in Saudi Arabia together with the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, as announced by South Korean President Yoon Seok-yeol.
Yoon was speaking in Riyadh, where PIF and Hyundai signed an agreement for the plant, which will have an annual production capacity of 50,000 electric and gasoline vehicles and will be the first South Korean car plant in the Middle East.
PIF will own a 70% stake in the new joint venture, with Hyundai holding the remaining 30%. The total investment in the project is estimated at more than $500 million.
Hyundai is building the first South Korean car plant in the Middle East
Hyundai Motor Group, the world’s third-largest auto group by sales, is starting production in the Gulf state as Saudi Arabia tries to shift its economy away from oil and aims to produce more than 300,000 vehicles annually by 2030.
“Hyundai will also act as a strategic technology partner to support the development of the new plant by providing technical and commercial assistance,” the statement said.
The first cars will roll off the production line in 2026. There are no details yet about the specific models that will be produced there.
