Seoul, South Korea / Riyadh, Saudi Arabia - Saudi Arabia's Public Investment Fund (PIF) and Hyundai Motor Company announced a $500 million joint venture to establish a self-driving car manufacturing plant in Saudi Arabia.
Why it matters:
As part of its Vision 2030 reform agenda, Saudi Arabia is pushing to expand its domestic auto manufacturing capabilities and position itself as an automotive hub.
The deal with Hyundai signals deepening business ties between Saudi Arabia and Asian partners.
The Key Points
- Saudi Arabia's sovereign wealth fund, PIF, and Hyundai Motor have formed a joint venture to build a significant automotive plant in the Kingdom. PIF will hold a 70% stake and Hyundai 30%.
- The plant is expected to produce 50,000 vehicles annually, including electric and internal combustion vehicles. Construction will start in 2024 and production in 2026.
- For PIF and Saudi Arabia, the deal supports strengthening capabilities, attracting technology, and creating jobs in the automotive sector.
What they're saying:
Yazeed A. Al-Humied, deputy governor and head of MENA investments at PIF, noted that this project aligns with its other investments in the automotive sector, such as stakes in Lucid and Ceer Motors.
Jaehoon Chang, president and CEO of Hyundai, sees this as an opportunity for significant advances in green car production in the region.
The project is scheduled to break ground in 2024, with production expected to begin in 2026.
However, project completion is subject to regulatory approvals and the fulfillment of certain conditions.
The initiative will also likely attract further investment in Saudi Arabia's automotive and mobility ecosystem.