Hyundai Motor Co. and Saudi Arabia’s Public Investment Fund (PIF) have commenced construction on a $500 million automotive plant in King Abdullah Economic City (KAEC), marking Hyundai’s first manufacturing facility in the Middle East.
The joint venture, Hyundai Motor Manufacturing Middle East (HMMME), is structured with PIF holding a 70% stake and Hyundai owning 30%. The plant, situated within the newly established King Salman Automotive Cluster, is scheduled to begin production in the fourth quarter of 2026, with an annual capacity of 50,000 vehicles, encompassing both internal combustion engine and electric models.
The project aligns with Saudi Arabia’s Vision 2030 initiative, aiming to diversify the economy beyond oil by developing domestic industries. The facility is expected to create thousands of jobs and facilitate knowledge transfer within the automotive sector.
Hyundai’s entry into the Middle Eastern manufacturing landscape follows similar moves by other automakers. For instance, Lucid Motors, backed by PIF, inaugurated its first overseas production facility in KAEC in 2023, focusing on electric vehicles.
