King Abdullah Economic City | BETH
22 Shawwal 1447 AH | Corresponding to 10 April 2026

News Introduction

A new phase in Saudi Arabia’s automotive industry has begun as construction continues on the Hyundai Motor manufacturing plant within the King Salman Automotive Cluster in King Abdullah Economic City (KAEC). The facility will be the first of its kind in the Middle East, with an annual production capacity of 50,000 vehicles, and is scheduled to commence operations in the fourth quarter of 2026.

Overview

The project represents a strategic joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company. The PIF holds a 70% stake, while Hyundai owns 30%, under the newly established entity “Hyundai Motor Middle East Manufacturing.”

The plant is expected to produce both internal combustion engine (ICE) and electric vehicles (EVs), reflecting Saudi Arabia’s commitment to technological diversification and the transition toward sustainable mobility.

Yazeed Al-Humied, Deputy Governor of the Public Investment Fund, stated that the project marks a significant step in supporting the local automotive sector by creating job opportunities, transferring advanced technologies, and enhancing local content.

Hyundai officials emphasized that the initiative represents the beginning of a long-term partnership with the Kingdom, aiming to build a state-of-the-art manufacturing facility that will contribute to training Saudi talent and advancing the objectives of Saudi Vision 2030.

BETH Analysis

The establishment of Hyundai’s manufacturing plant in Saudi Arabia reflects a strategic shift toward economic diversification and industrial localization. The project strengthens the Kingdom’s position as a regional hub for automotive manufacturing and supports the development of local supply chains.

Moreover, the initiative complements Saudi Arabia’s broader efforts to attract high-quality investments and foster an integrated industrial ecosystem, enhancing the Kingdom’s global competitiveness in the automotive sector.

Conclusion

The Hyundai Motor plant represents a pivotal milestone in the localization of the automotive industry in Saudi Arabia. It underscores the success of international partnerships in advancing industrial development and reinforces the Kingdom’s ambition to become a global manufacturing hub in alignment with Vision 2030.