Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company, has officially broken ground on a new manufacturing plant. This event took place at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC), marking a significant advancement for Saudi Arabia’s automotive sector, as reported by the Saudi Press Agency (SPA).

PIF holds a 70 percent stake in HMMME, while Hyundai owns the remaining 30 percent. The plant, which will be Hyundai’s first manufacturing facility in the Middle East, is expected to produce its inaugural vehicle by the fourth quarter of 2026. The facility aims for an annual production capacity of 50 000 vehicles, which will include both internal combustion engine (ICE) vehicles and electric vehicles (EVs).

Yazeed Alhumied, Deputy Governor and Head of MENA Investments at PIF, emphasized the importance of this groundbreaking event, stating that it represents a major milestone for PIF in strengthening the automotive industry in Saudi Arabia. He noted that PIF is committed to accelerating the growth of the automotive ecosystem through strategic partnerships, enhancing local capabilities, attracting advanced technology, and generating skilled employment opportunities in the sector.

Jaehoon Chang, vice chair of Hyundai Motor Group, remarked that this groundbreaking signifies the start of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company. He expressed hopes that the joint venture would contribute to regional talent development with advanced skills and capabilities aligned with Saudi Vision 2030.

HMMME aims to build a strong foundation for automotive manufacturing in Saudi Arabia, with plans to utilize local talent to create thousands of jobs. This initiative will also facilitate knowledge transfer and skills development in the industry. The localization of Hyundai vehicles is expected to boost the growth of the Kingdom’s automotive and mobility ecosystem, shaping a promising industrial future.

This partnership is part of PIF’s broader strategy to establish Saudi Arabia as a global automotive hub, with initiatives that are transforming the sector by enhancing domestic manufacturing capabilities and strengthening infrastructure and supply chains.