The Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) have officially signed a joint venture agreement to establish a highly automated vehicle manufacturing plant within the kingdom’s borders.
PIF, Hyundai joint venture :
The joint venture, unveiled at the Saudi-Korean Business Forum, comes as a result of the PIF’s strategic efforts to elevate Saudi Arabia as a global automotive player and drive major transformation in the sector.
The two entities are set to pool their resources, with PIF holding a commanding 70 per cent stake in the partnership, while Hyundai retains the remaining 30 per cent.
Additionally, Hyundai will act as a strategic technology partner, offering technical and commercial expertise to support the development of the state-of-the-art manufacturing plant.
The project is expected to exceed $500m, signifying a significant commitment to bolstering Saudi Arabia’s automotive and mobility ecosystem.
The joint venture aims to manufacture 50,000 vehicles annually, encompassing both internal combustion engine (ICE) and electric vehicles (EV).
Construction of the new plant is scheduled to commence in 2024, with production operations expected to begin in 2026.
By localising Hyundai’s vehicle production, Saudi Arabia aims to accelerate the growth of its automotive sector, attract additional investments, and strengthen the national economy.This initiatives can also generate thousands of job opportunities and facilitate the transfer of knowledge and expertise.