Hyundai and PIF’s $500M Manufacturing Plant

In a groundbreaking partnership, Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF) are establishing a $500 million automotive manufacturing plant in the Kingdom. Set to be operational by 2026, the facility will produce 50,000 vehicles annually, including both internal combustion engine (ICE) models and electric vehicles.

This joint venture represents a pivotal step in developing Saudi Arabia’s automotive manufacturing capabilities. By fostering local production, the Kingdom is advancing its industrial diversification strategy under Vision 2030. The plant will also create thousands of jobs, transfer critical technology, and position Saudi Arabia as a regional hub for car manufacturing.

In addition to production, the facility will likely include research and development centers to innovate vehicle design tailored to regional conditions. The partnership underscores Saudi Arabia’s commitment to building a knowledge-based economy, offering new educational and technical training programs. Environmentally, this move also supports the Kingdom’s efforts to reduce carbon emissions and promote eco-friendly transportation solutions.