Azernews.Az

By Alimat Aliyeva

Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF), officially broke ground on Wednesday in Saudi Arabia, marking the carmaker's formal entry into the Middle Eastern manufacturing sector, Azernews reports.

The facility, 70 percent owned by PIF and 30 percent by Hyundai, will be established within the King Salman Automotive Cluster in the King Abdullah Economic City (KAEC), an emerging hub for automotive manufacturing in the region.

HMMME is Hyundai’s first manufacturing plant in the Middle East and is slated to roll out its first vehicle by the fourth quarter of 2026. The plant aims for an annual production capacity of 50,000 units, including both internal combustion engine (ICE) vehicles and electric vehicles (EVs), reflecting Hyundai's strategy to support sustainable mobility.

Beyond vehicle production, the joint venture is expected to generate thousands of jobs in Saudi Arabia and contribute to the development of a skilled local workforce. Hyundai has stated its commitment to nurturing technical talent in line with Saudi Arabia’s Vision 2030 — the national strategy to diversify the country’s economy beyond oil, focusing on industries such as manufacturing, renewable energy, and advanced technology.

The groundbreaking ceremony was attended by several high-ranking officials and business leaders, including Saudi Minister of Industry and Mineral Resources Bandar Ibrahim Al-Khorayef, PIF Deputy Governor Yazeed A. Al-Humied, Chargé d’Affaires of the Korean Embassy Moon Byung-joon, and Hyundai Motor Company Vice Chairman Chang Jae-hoon.

“This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia,” said Al-Humied. “PIF will continue to enable and accelerate the growth of the Kingdom’s automotive ecosystem through partnerships.”

Vice Chairman Chang added, “Today’s groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company as we lay the foundation for a new era of future mobility and technological innovation. Through our joint venture, we hope to contribute to developing regional talent equipped with advanced skills under Saudi Vision 2030.”

Addressing concerns over overseas expansion potentially impacting Hyundai’s home market, Chang reassured the Korean press that international investment would not come at the expense of domestic commitments. “I don't believe domestic investment will be neglected or reduced due to overseas ventures. We will continue to enhance our domestic presence and fulfill our responsibilities in Korea,” he said.

This initiative also positions Saudi Arabia as a rising player in the global EV supply chain. With abundant renewable energy resources and government-backed industrial zones, Saudi Arabia aims to become a major exporter of electric vehicles and components — an ambition that aligns with Hyundai’s own global sustainability goals.

Moreover, the HMMME project will likely catalyze broader regional development, attracting suppliers, logistics partners, and education providers, forming a full-fledged automotive ecosystem that may serve the entire MENA (Middle East and North Africa) region.