Jeddah — Saudi Arabia is rapidly advancing its automotive ambitions with the groundbreaking of a Hyundai car manufacturing facility at the King Salman Auto Complex in King Abdullah Economic City, a strategic project aligned with Vision 2030 and backed by the Public Investment Fund (PIF).
Speaking at the ceremony, Minister of Industry and Mineral Resources Bandar Al-Khorayef said the Kingdom is moving “at an accelerated pace” to localize vehicle production, enhance supply chains, and position Saudi Arabia as a global automotive hub.
The factory, a joint venture between Hyundai Motor Company and PIF, is expected to produce 50,000 vehicles annually, contributing an estimated $5 billion to Saudi GDP by 2045. It joins earlier investments from Lucid Motors and Ceer, forming a trio of auto leaders set to manufacture 300,000 cars annually at the complex.
Al-Khorayef highlighted the project’s role in strengthening local content, boosting industrial capabilities, and creating a competitive export-oriented sector. He also credited cross-ministerial cooperation for helping realize the Hyundai partnership, thanking the ministries of investment, energy, finance, and economy, in addition to the National Industrial Development Center and the Saudi Industrial Development Fund.
Hyundai, which has operated in Saudi Arabia for over four decades, currently holds the second-largest market share in the Kingdom’s automotive sector. The new plant is expected to accelerate economic diversification and support high-value manufacturing localization under the broader National Industrial Strategy.
