Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company, has officially launched its $500 million car factory at the King Salman Automotive Cluster in King Abdullah Economic City (KAEC). The groundbreaking ceremony marks a significant step forward for the automotive sector in Saudi Arabia, according to the Saudi Press Agency (SPA).

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

Yazeed Alhumied, Deputy Governor and Head of MENA Investments at PIF, emphasized that this project is a significant milestone for PIF, aimed at enhancing the automotive industry in Saudi Arabia. He noted that PIF intends to continue enabling and accelerating growth within the country’s automotive ecosystem through various partnerships, underscoring a commitment to building local capabilities and creating skilled jobs in the sector.

Jaehoon Chang, vice chair of Hyundai Motor Group, expressed that the groundbreaking symbolizes the start of a new chapter for both Saudi Arabia and Hyundai. He highlighted the venture’s potential to foster technological innovation and contribute to talent development in line with Saudi Vision 2030.

HMMME aims to establish a strong foundation for automotive manufacturing in Saudi Arabia, with a focus on utilizing local talent. The facility is expected to create thousands of jobs while promoting knowledge transfer and skills development. Additionally, the localization of Hyundai vehicles is projected to support the growth of the Kingdom’s automotive and mobility ecosystem, shaping its industrial future.

This partnership is part of a broader strategy by PIF to establish Saudi Arabia as a global automotive hub, enhancing domestic manufacturing capabilities and strengthening infrastructure and supply chains in the industry.