Saudi Arabia PIF and Hyundai to Construct a $500 Million Car Factory in the Kingdom
In a significant development aimed at bolstering Saudi Arabia’s automotive industry, the Public Investment Fund (PIF) of Saudi Arabia has entered into a contract with South Korea’s Hyundai Motor Company to establish a state-of-the-art car manufacturing facility in the Kingdom. This facility will not only produce conventional vehicles but will also be dedicated to the production of electric vehicles (EVs). The collaboration between PIF and Hyundai aligns perfectly with Saudi Arabia’s vision of becoming a prominent hub for automobile production. Under this partnership, PIF will hold a substantial 70% ownership stake in the venture, while Hyundai will have a 30% share and serve as the project’s “strategic technology partner.” The total investment for this venture is estimated to surpass the $500 million mark.
Saudi Arabia boasts the largest car market in the Gulf region, making it an attractive destination for automotive investments. Yazeed A. Al-Humied, PIF’s deputy governor and head of MENA Investments, expressed the significance of this partnership by stating, “Partnering with Hyundai is another important milestone for PIF in successfully promoting and accelerating the growth of Saudi Arabia’s automotive ecosystem, one of our 13 priority sectors.” This collaboration not only reinforces Saudi Arabia’s commitment to diversifying its economy but also signifies a significant step toward establishing the Kingdom as a major player in the global automotive industry.
