Hyundai And Saudi Arabian PIF Build Assembly Plants In The Middle East

Hyundai signed a memorandum of understanding with PIF in Saudi Arabia. (Doc. Hyundai Motor Group)

JAKARTA - Hyundai and the Saudi Arabian Public Investment Fund (PIF) signed an agreement to build an assembly plant in the Middle East. The agreement was announced on the occasion of the South Korean President Yoon Suk Yeol's state visit to Saudi Arabia.

In the agreement, the two companies agreed to invest more than $500 million to build a local unit factory in King Abdullah Economic City, Saudi Arabia.

The factory, reported Yonhap, Monday, October 23, is scheduled to start commercial production in early 2026, expected to have an annual capacity of 50,000 units, including electric vehicles and ICE (Internal Combustion Engine).

This step is also in line with the Saudi Vision 2030 vision, which aims to develop the country's automotive industry and reduce dependence on the oil sector.

In addition to the agreement, Hyundai also signed a memorandum of understanding (MoU) with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company (SAPTCO) to develop a hydrogen mobility ecosystem in Saudi Arabia. In this framework of cooperation, these companies plan to work together to create hydrogen-based environmentally friendly mobility, including the hydrogen electric bus development program.

Air Products Qudra itself is a joint venture between Air Products, a global industrial gas company based in the United States, and Qudra Energy, Saudi Arabia's local energy company, as well as SAPTCO, which operates in domestic bus services and international routes to neighboring countries such as the United Arab Emirates and Egypt, are also involved in this effort.