Saudi PIF and Hyundai Establish $500M Car Manufacturing Plant
Public Investment Fund (PIF), the Saudi Arabian sovereign wealth fund, and Hyundai Motor Company have struck a deal to build a car assembly factory in Saudi Arabia, which would provide a huge economic boost to the country.
Saudi Arabia and Hyundai are partnering for growth
Both internal combustion engine (ICE) and electric vehicle (EV) vehicles will be manufactured at the highly automated factory at a rate of $50,000 per year. Construction of the facility is scheduled to begin in 2026 after a 2024 groundbreaking. Thousands of new positions will be created, and the sharing of automotive industry knowledge and skills will be facilitated by this project.
Job opportunities in the region
Furthermore, the partnership reflects Saudi Arabia's ambitions to expand its automotive ecosystem and foster a sustainable and eco-friendly automotive future within the region. The automotive sector in both Saudi Arabia and the United Arab Emirates (UAE) offers substantial employment opportunities, and this venture is likely to contribute significantly to job creation in the Saudi job market.
The Public Investment Fund of Saudi Arabia (PIF) and the Hyundai Motor Company (Hyundai) have formed a joint venture in which PIF owns 70% and Hyundai 30%. It is estimated that the project will cost more than $500 million to complete.
This partnership is viewed as a pivotal milestone in Saudi Arabia's automotive and mobility value chains and aligns with PIF's current investments in Lucid and Ceer Motors. The venture is expected to drive advancements in vehicle production, contribute to innovation, and promote environmental progress in the automotive sector.
The official agreement was signed during the Saudi-Korean Business Forum, signaling a strong commitment to the development of the automotive industry in Saudi Arabia. With the plant's launch, the two companies aim to increase the production capacity of vehicles in the kingdom, which can significantly boost the Saudi economy and create numerous job opportunities, driving economic growth and technological advancement.
Saudi Arabia and Hyundai's partnership reflects a shared vision to facilitate an eco-friendly, sustainable automotive future, making a positive impact on the country's manufacturing and job market.