The facility, named Hyundai Motor Manufacturing Middle East, is being built in King Abdullah City, within the King Salman Automotive Cluster.
Groundbreaking took place Wednesday, with the start of production scheduled for the fourth quarter of 2026. The plant is a joint venture between Hyundai Motor, which holds a 30 percent stake, and Saudi Arabia’s powerful Public Investment Fund, which controls the remaining 70 percent.
The move signals Hyundai’s ambition to deepen its presence in the region, where vehicle sales are expected to exceed 3 million annually by 2030. Last year, Hyundai sold 840,000 vehicles in Saudi Arabia alone, which represented roughly 34 percent of the Middle Eastern market.
“With this factory, we are driving change forward and paving the way for a new industrial future in the region,” said Park Wong-yun, vice president and CEO of the joint venture, in remarks at the ceremony. “The facility will become a platform for growth and industrial excellence in the heart of the kingdom.”
The plant will have the capacity to produce 50,000 vehicles per year and will manufacture both internal combustion engine and electric models.
Hyundai officials said the initiative aligns with the goals of Saudi Arabia’s Vision 2030 — a sweeping plan to reduce the kingdom’s reliance on fossil fuels and diversify its economy through industrial development and sustainability.
As part of that effort, Saudi Arabia aims to produce 500,000 electric vehicles annually by 2030 and convert more than 30 percent of the vehicles in its capital, Riyadh, to electric.
The broader Gulf region has also shown momentum in EV adoption. Qatar has set a goal of 10 percent EV usage by 2030, and the United Arab Emirates saw electric vehicle imports rise from $100 million in 2019 to $1.39 billion in 2022, a 14-fold increase.
The expansion comes amid renewed diplomatic and commercial engagement between the United States and key Gulf states. U.S. President Donald Trump — on his first overseas trip since returning to office — arrived in the region this week, with stops in Saudi Arabia, Qatar, and the UAE.
reporter
Kim Dong-young
davekim0807@ajupress.com
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