Hyundai Motor to build car factory in Saudi Arabia with its sovereign fund

Industry

Published: 23 Oct. 2023, 14:54 Updated: 23 Oct. 2023, 14:59

Hyundai Motor to build car factory in Saudi Arabia with its sovereign fund

Hyundai Motor Group Executive Chair Euisun Chung, far left, Korean President Yoon Suk Yeol, fifth from left, and Yazid Alhumied, deputy governor of Saudi Arabia's Public Investment Fund (PIF), second from right, clap hands on Sunday as Hyundai Motor and the PIF signed a partnership to build an auto assembly plant in the Middle East country. [YONHAP]

Hyundai Motor has joined forces with Saudi Arabia's Public Investment Fund (PIF) to build car manufacturing facilities in the country.

The announcement comes during President Yoon Suk Yeol's state visit to the country.

Hyundai Motor signed an agreement with the PIF, Saudi Arabia's sovereign wealth fund, on Sunday, to jointly build an auto manufacturing plant in King Abdullah Economic City, located on the west coast of the country.

It will build 50,000 cars annually. Its construction is scheduled to begin in 2024 and be completed by the first half of 2026. It is to make both electric vehicles and internal combustion engine vehicles.

The two parties will jointly invest at least $500 million into the facilities, with the fund owning 70 percent and Hyundai Motor owning the remaining 30 percent.

It will be the automaker's first car factory in the Middle East region.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]