Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor Co. have sealed a momentous deal to establish a cutting-edge automobile manufacturing plant exceeding $500 million in investment in the Kingdom. This groundbreaking joint venture will see PIF holding a commanding 70 percent stake, with Hyundai, the South Korean automotive giant, owning the remaining shares. Hyundai will not only be an equity partner but also a strategic technology collaborator, providing technical expertise and commercial support to facilitate the plant’s development.
The plant is set to have an annual production capacity of 50,000 vehicles, spanning both traditional internal combustion engine models and innovative electric vehicles. Expected to break ground in 2024, production at the plant is slated to commence in 2026. Beyond economic advantages, this partnership is poised to create thousands of job opportunities and enable the transfer of critical knowledge and expertise, catalyzing the growth of Saudi Arabia’s automotive and mobility ecosystem while attracting further investments. This endeavor underscores PIF’s commitment to elevating Saudi Arabia’s global presence in the automotive industry, reshaping the sector, strengthening manufacturing capabilities, and fostering robust supply chains, not only within the Kingdom but also internationally. This partnership represents a substantial leap forward in PIF’s broader mission to establish Saudi Arabia as a prominent global automotive player and drive transformative growth in the industry.