Hyundai opens gigafactory in Saudi Arabia: cars of the future!

Hyundai opens gigafactory in Saudi Arabia: cars of the future!

Hyundai has launched a major joint venture with Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund) to build a new car factory in Saudi Arabia. The company project, known as Hyundai Motor Manufacturing Middle East (HMMME), envisages a 70% stake for the PIF and a 30% stake for Hyundai. The groundbreaking ceremony for the plant was held in mid-May 2025 at King Abdullah Economic City.

The new factory is designed to begin operations in the fourth quarter of 2026 and achieve annual production of up to 50,000 vehicles. The product range will include both electric vehicles and cars with internal combustion engines, while the exact models that will be manufactured in Saudi Arabia are still unclear. The aim of the joint venture is to establish Saudi Arabia as a significant player in the global automotive industry.

Important players in the laying of the foundation stone

Several high-ranking officials were present at the groundbreaking ceremony, including Wongyun Park, CEO of HMMME, and Ahmed Ali Al Subaey, Chairman of the HMMME Board of Directors. In addition, Yazeed A. Alhumied, Deputy Governor of PIF, attended the ceremony and emphasized the importance of this project in strengthening Saudi Arabia's automotive industry and creating high-skilled jobs. Also H.E. Industry and Mineral Resources Minister Bandar Alkhorayef and Hyundai Motor Group Vice Chairman Jaehoon Chang were among those present.

This initiative joins a number of PIF efforts to support local automotive production in Saudi Arabia. In addition to the joint venture with Hyundai, the PIF is also planning a factory in collaboration with Lucid Motors, which will include the final assembly of vehicle parts from the USA. The fund also supports the Saudi Arabian electric car brand Ceer, which works with technology partner Foxconn.

In recent years, several Chinese automobile manufacturers such as Changan Automobile and Foton Motor Group have also expanded their operations in Saudi Arabia by setting up production facilities there. These developments demonstrate the growing interest in Saudi Arabia as a manufacturing location in the automotive industry and the PIF's strategic plans to establish the country as a major vehicle production center.

For more information on the groundbreaking and the details of the joint venture, please visit the reports from Mercury and Hyundai.