SEOUL - Hyundai Motor Co., South Korea's leading automaker, revealed plans on Monday to enter a joint venture with Saudi Arabia's Public Investment Fund (PIF) for the construction of a car assembly plant in Saudi Arabia.
According to a new release by Yonhap News Agency, the deal was signed on Sunday in Riyadh during South Korean President Yoon Suk Yeol's state visit to the country. The joint venture aims to invest over US$500 million to establish a complete knockdown unit plant in King Abdullah Economic City, located in the western region of Saudi Arabia. Commercial production is targeted to begin in the first half of 2026.
The facility will serve as Hyundai's inaugural car plant in the Middle East. It is slated to have an annual production capacity of 50,000 electric and gas-powered vehicles. The PIF will own a 70-percent stake in the joint venture, with Hyundai holding the remaining 30 percent. The announcement comes as part of Saudi Arabia's Vision 2030 initiative, which includes diversifying its economic activities beyond oil production.
In addition, Hyundai has signed a memorandum of understanding with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company (SAPTCO) to develop a hydrogen mobility ecosystem in Saudi Arabia. The memorandum outlines various areas of cooperation, including pilot projects for hydrogen electric buses and government-supported research programs.