Hyundai Motor Manufacturing Middle East (HMMME), a collaborative venture between the Public Investment Fund (PIF) and Hyundai Motor Company, conducted its groundbreaking ceremony at the newly announced $500 million King Salman Automotive Cluster within King Abdullah Economic City (KAEC). This event signifies a pivotal milestone in the advancement of Saudi Arabia’s automotive sector, the Saudi Press Agency (SPA) reported.
PIF holds a 70 percent stake in HMMME, while Hyundai possesses the remaining 30 percent.
The facility, Hyundai’s inaugural manufacturing plant in the Middle East, is anticipated to produce its first vehicle by the fourth quarter of 2026 and aims for an annual output of 50,000 vehicles. The production will encompass both internal combustion engine (ICE) vehicles and electric vehicles (EVs).
PIF’s commitment to the automotive industry
Deputy Governor and Head of MENA Investments at PIF, Yazeed Alhumied, remarked: “This groundbreaking is a major milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to building local capabilities, attracting cutting-edge technology, and creating highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”
Jaehoon Chang, vice chair of Hyundai Motor Group, stated: “Today’s groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation. Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030.”
Local talent and job creation
HMMME aspires to establish a robust foundation for automotive manufacturing in Saudi Arabia. By leveraging local talent, the facility is set to create thousands of jobs while fostering knowledge transfer and skills development. Moreover, the localization of Hyundai vehicles is poised to enhance the growth of the Kingdom’s automotive and mobility ecosystem, propelling its industrial future.
Furthermore, this partnership is part of a broader series of PIF initiatives aimed at positioning Saudi Arabia as a global automotive hub. Collectively, these efforts are revolutionizing the sector, amplifying domestic manufacturing capabilities, and fortifying infrastructure and supply chains.
