Riyadh: Saudi Arabia’s Public Investment Fund (PIF) has signed an agreement with South Korea’s Hyundai Motor to build a vehicle manufacturing plant in the Kingdom.
The move is part of the ongoing efforts to promote development and economic diversification in line with the kingdom’s Vision 2030 objectives.
The joint venture announced at the Saudi-Korean Business Forum on Sunday, October 22, with PIF holding 70 percent stake in the partnership, while Hyundai claims the remaining 30 percent.
The total investment for the project is estimated to exceed 500 million dollars (Rs 41,57,39,50,000).
It aims to produce 50,000 vehicles annually, including both fuel-powered and electric vehicles.
The plant’s groundbreaking is set for next year, with potential production starting in 2026.
The new plant will create thousands of jobs and allow for knowledge and expertise transfer.
The Deputy Governor and Head of MENA Investments at PIF, Yazeed A. Al-Humied, said, “Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem – one of our 13 priority sectors.
“We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress,” said Jaehoon Chang, president and CEO of Hyundai Motor Company.
