KAEC, Saudi Arabia – May 14, 2025 — Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor Company, has officially broken ground on Hyundai’s first production facility in the Middle East. The groundbreaking ceremony, held at the newly announced King Salman Automotive Cluster in King Abdullah Economic City (KAEC), marks a major milestone in Saudi Arabia’s push to develop a world-class automotive industry.
With PIF holding a 70% stake and Hyundai the remaining 30%, the new plant is poised to become a central pillar of Saudi Arabia’s growing mobility ecosystem. The facility is set to begin operations in the fourth quarter of 2026, with an annual production capacity of 50,000 vehicles. It will manufacture both internal combustion engine (ICE) and electric vehicles (EVs), aligning with the Kingdom’s goals to diversify its economy and advance sustainable industrial development.
Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, highlighted the significance of the venture:
“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, Vice Chair of Hyundai Motor Group, echoed the sentiment:
“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 HMMME, 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 plant will not only serve as a major manufacturing hub but also play a key role in developing local talent and transferring advanced manufacturing knowledge. Thousands of jobs are expected to be created as a result of the initiative, further boosting Saudi Arabia’s domestic capabilities in automotive production and technology.
This venture forms part of a broader strategy by PIF to position Saudi Arabia as a leading player in the global automotive industry. The HMMME facility is one of several initiatives supporting the Kingdom’s Vision 2030 goals to transform the economy, localize high-tech industries, and establish sustainable infrastructure and supply chains.
