Hyundai, Saudi fund launch auto plant joint venture

Hyundai Motor Company has begun constructing its first automotive plant in the Middle East, partnering with Saudi Arabia’s sovereign wealth fund to establish a production base with an annual capacity of 50,000 vehicles.

On Wednesday (local time), Hyundai held a groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME), its new joint venture production facility in Saudi Arabia. The event took place at the King Salman Automotive Industrial City in King Abdullah Economic City and drew about 200 attendees, including Hyundai Motor Group Vice Chairman Jang Jae-hoon, Yazeed Al-Humied, Deputy Governor of the Public Investment Fund (PIF), and Moon Byung-joon, Acting Ambassador of South Korea to Saudi Arabia.

HMMME is a joint venture in which Hyundai owns a 30% stake and the PIF holds the remaining 70%. Scheduled to begin operations in the fourth quarter of 2025, the plant will produce both electric and internal combustion engine vehicles.

“This project marks a major milestone for Saudi Arabia’s automotive industry,” said Al-Humied. “Through our ongoing partnership with Hyundai, we aim to fast-track the growth of our national mobility ecosystem.”

The venture aligns with Saudi Arabia’s “Vision 2030,” a national development strategy aimed at diversifying the kingdom’s energy-dependent economy by promoting sectors such as manufacturing and hydrogen energy. The PIF, a key player in Vision 2030, is driving this automotive initiative as part of its broader push to industrialize and innovate.

“We intend to make HMMME a central hub for advancing and expanding Saudi Arabia’s mobility ecosystem,” a Hyundai official noted.


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