KAEC, Saudi Arabia – May 15, 2025 – Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor Company, marked a significant milestone with the groundbreaking ceremony for its first manufacturing plant in the Middle East. Located within the newly established King Salman Automotive Cluster in King Abdullah Economic City (KAEC), the facility represents a pivotal step in advancing Saudi Arabia’s automotive industry and aligns with the objectives of Saudi Vision 2030.
The joint venture, with PIF holding a 70% stake and Hyundai Motor Company owning 30%, underscores a strategic partnership aimed at fostering industrial growth and technological innovation. The plant, Hyundai’s inaugural production facility in the Middle East, is set to commence production in the fourth quarter of 2026, with a targeted annual capacity of 50,000 vehicles, encompassing both internal combustion engine (ICE) and electric vehicles (EVs).
In an official press release, Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, highlighted the project’s significance, stating, “This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”
Jaehoon Chang, Hyundai Motor Group Vice Chair, emphasized the transformative potential of the initiative, stating, “Today's groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation. Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030.”
Wongyun Park, Vice President and CEO of Hyundai Motor Manufacturing Middle East, added, “With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom.”
The HMMME plant is expected to create thousands of jobs, promoting knowledge transfer and skills development among the local workforce. By localizing Hyundai vehicle production, the facility will accelerate the growth of Saudi Arabia’s automotive and mobility ecosystem, enhancing domestic manufacturing capabilities and supply chain development. This initiative aligns with PIF’s broader strategy to drive economic diversification and position the Kingdom as a global player in the automotive sector, in line with Saudi Vision 2030’s goals.
The groundbreaking ceremony marks a critical step toward establishing a robust automotive manufacturing hub in Saudi Arabia, reinforcing the Kingdom’s commitment to innovation, sustainability, and economic transformation. As the project progresses, it is poised to deliver significant economic and industrial benefits, further solidifying Saudi Arabia’s role in the global automotive landscape.
