The first Hyundai Motor production base in the Middle East, a joint venture between Hyundai Motor and Saudi sovereign wealth funds, will be established. On the 14th local time, a groundbreaking ceremony for the factory was held at the King Salman Automotive Cluster in Saudi Arabia.
This factory is a production base being established by Hyundai Motor in collaboration with the Saudi sovereign wealth funds (PIF, Public Investment Fund) in the Middle East. Through this, Hyundai Motor secures a foundation to leap forward as a representative brand of Saudi Arabia, while Saudi Arabia lays down an important milestone for the development of its automotive industry.
The site of Hyundai Motor's Saudi Arabia production corporation (HMMME, Hyundai Motor Manufacturing Middle East) has been prepared within the King Salman Automotive Cluster. The King Salman Automotive Cluster is a newly established automotive manufacturing hub in Saudi Arabia, created with the goal of developing the automotive industry in King Abdullah Economic City (KAEC).
HMMME is a joint production corporation with Hyundai Motor holding a 30% equity stake and Saudi sovereign wealth funds holding a 70% equity stake, and it is being built as a factory capable of producing 50,000 electric and internal combustion vehicles annually, aiming to commence operations in the fourth quarter of 2026.
The groundbreaking ceremony was attended by Bandar Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources; Yazeed A. Al-Humied, Vice President of Saudi sovereign wealth funds; Mun Byeong-jun, Deputy Ambassador of the Republic of Korea to Saudi Arabia; and Jang Jae-hoon, Vice Chairman of Hyundai Motor Group, along with about 200 key figures and officials from Korea and Saudi Arabia.
Yazeed A. Al-Humied, Vice President of Saudi sovereign wealth funds, noted, "HMMME will be an important milestone for the development of the Saudi Arabian automotive industry" and added, "We will accelerate the growth of the Saudi Arabian mobility ecosystem through our ongoing partnership with Hyundai Motor."
Vice President Al-Humied stated, "Collaboration with Hyundai Motor demonstrates the strong commitment of the Saudi sovereign wealth funds to enhance the technological capabilities of the Saudi Arabian automotive industry and to foster talented individuals."
Vice Chairman Jang Jae-hoon emphasized in his speech, "This groundbreaking ceremony signifies the beginning of a new era for both Hyundai Motor and Saudi Arabia" and said, "We will lay the foundation for a new chapter in future mobility and technological innovation." He added, "I hope HMMME can contribute to nurturing local talent with mobility technology development capabilities in response to Saudi Arabia's 'Vision 2030.'"
Saudi Arabia is pursuing a national development project called 'Vision 2030' to diversify its existing energy-centric industrial structure into manufacturing, hydrogen energy, and more. This collaboration is one of the key projects being implemented by the Saudi sovereign wealth funds to strengthen the automotive industry, which is a central entity of Vision 2030.
Hyundai Motor plans to combine its innovative manufacturing technology with Saudi talent and infrastructure, establishing HMMME as a key base to accelerate the growth and development of the Saudi Arabian mobility ecosystem.
[OSEN]