Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef, announced on Wednesday the groundbreaking for Hyundai at the King Salman Automobile Manufacturing Complex, located in King Abdullah Economic City. This development is part of a strategic partnership between the Public Investment Fund and the Korean company.
Importance of the Project and Its Impact on the Saudi Automotive Sector
This project marks a significant step in the Kingdom's plan to become a global automotive manufacturing hub and is Hyundai's first of its kind in the Middle East. Production is expected to commence in the fourth quarter of 2026, with a projected capacity of 50,000 vehicles annually.
Project Details
- Local Partner: Public Investment Fund (70%)
- Global Partner: Hyundai Motor (30%)
- Production Capacity: 50,000 vehicles annually
- Project Location: King Abdullah Economic City
- Project Area: 500,000 square meters
Project Goals and Kingdom Aspirations
Through this partnership, the Kingdom aims to enhance industrial localization and expand the local production base, supporting the competitiveness of the national economy and contributing to the achievement of Vision 2030.
What Will the Project Offer to the Kingdom?
- Adding approximately $5 billion to the GDP by 2045
- Enhancing industrial infrastructure and local supply chains
- Creating direct and indirect job opportunities
- Positioning the Kingdom as a center for exporting vehicles to regional markets
Officials' Opinions on the Project
Minister of Industry and Mineral Resources, Bandar Al-Khorayef, stated: "The Kingdom is confidently advancing towards localizing the automotive industry, creating added value for the national economy."
He added: "This project represents an important milestone in our journey towards strengthening supply chains and developing local content to meet domestic and regional demand."
What Did the Director of the Automotive Sector at the Public Investment Fund Say?
Mohammed Al-Sheha, Director of the Automotive and Mobility Sector at the Public Investment Fund, confirmed that the Hyundai plant is the third after the Lucid and Ceer plants, and is part of a broader strategy to attract major global automotive manufacturers.
He also noted that the company sold nearly 130,000 vehicles in the Saudi market last year, indicating strong consumer confidence in the brand.
Hyundai's Relationship with the Kingdom
Hyundai's relationship with the Saudi market spans over 40 years, making it the second-largest company in the Saudi automotive market in terms of market share.
What Makes This Partnership Unique?
- The presence of a strong strategic partner like the Public Investment Fund
- Targeting a massive internal and regional market
- Focus on manufacturing electric vehicles and modern technologies
This project is another step towards transforming the Kingdom into a global automotive destination, with major companies like Lucid, Ceer, and Hyundai operating within the same industrial complex.
Are you looking for a used car for sale in Saudi Arabia or a new car for sale in Saudi Arabia?
