Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF), has begun construction on its first automotive production plant in the Middle East, located in King Abdullah Economic City.
The facility, announced in 2023, will produce both combustion engine and electric vehicles (EVs) and is scheduled to begin operations in Q4 2026. The plant will have an annual production capacity of 50,000 vehicles, according to the companies.
The joint venture is majority-owned by the Saudi sovereign wealth fund, which holds a 70% stake, while Hyundai owns the remaining 30%. Hyundai had previously estimated the total investment at over $500 million, marking a significant expansion of its global manufacturing footprint.
“This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia,” said Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF. “This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs.”
Hyundai has not disclosed which electric vehicle models will be built at the site. The company referred to the project as a “highly automated vehicle production” facility, without specifying whether the production will follow SKD (semi-knocked down) or CKD (completely knocked down) processes.
Wongyun Park, Vice President and CEO of HMMME, said the new factory will “become a platform for growth and industrial excellence in the heart of the Kingdom.”
The project aligns with PIF’s broader strategy to diversify Saudi Arabia’s economy through industrial development. In September 2023, Lucid Motors, also backed by PIF, began SKD assembly of the Lucid Air at a plant in the same economic zone, using vehicle kits shipped from Arizona.