Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor Company have begun constructing a cutting-edge automotive manufacturing facility at the King Salman Automotive Cluster, a key step in establishing Saudi Arabia as a regional hub for advanced industrial manufacturing.
The plant, with a 50,000-vehicle annual capacity, will produce both internal combustion engine (ICE) and electric vehicles (EVs) for the Saudi market.
Expected to contribute $5 billion to Saudi Arabia’s GDP by 2045, the facility will create jobs, enhance local supply chains, and support Vision 2030’s localization goals.
The Ministry of Industry and Mineral Resources, led by H.E. Bandar AlKhorayef, has driven the project, with PIF holding a 70% stake. This milestone underscores Saudi Arabia’s growing role as a competitive, export-oriented automotive hub.
The plant, with a 50,000-vehicle annual capacity, will produce both internal combustion engine (ICE) and electric vehicles (EVs) for the Saudi market.
Location: King Salman Automotive Cluster
This project builds on a 40-year partnership between Saudi Arabia and Hyundai, which holds a significant market share in the Kingdom. Discussions for the facility started in 2017, aligning with the 2022 National Industrial Strategy (NIS) to attract major manufacturers and produce 300,000 vehicles annually. The plant, located in King Abdullah Economic City, joins partnerships with Lucid Motors and Ceer.Expected to contribute $5 billion to Saudi Arabia’s GDP by 2045, the facility will create jobs, enhance local supply chains, and support Vision 2030’s localization goals.
The Ministry of Industry and Mineral Resources, led by H.E. Bandar AlKhorayef, has driven the project, with PIF holding a 70% stake. This milestone underscores Saudi Arabia’s growing role as a competitive, export-oriented automotive hub.
