Hyundai Motor Company has officially broken ground on a landmark project — its first-ever Hyundai Middle East Factory, located in the King Salman Automotive Cluster within King Abdullah Economic City (KAEC). This move cements Hyundai’s commitment to regional innovation and industrial expansion.
A Strategic Partnership
This Hyundai Middle East Factory is the result of a powerful joint venture between:
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Saudi Arabia’s Public Investment Fund (PIF) – 70% ownership
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Hyundai Motor Company – 30% ownership
This partnership reflects Saudi Arabia’s push toward industrial localization, advanced manufacturing, and global supply chain development.
Set to Launch by 2026
Slated to begin operations in Q4 2026, the factory will produce up to 50,000 vehicles annually, including:
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Internal Combustion Engine (ICE) vehicles
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Electric Vehicles (EVs)
This diverse lineup aligns with the global shift toward sustainable mobility.
Vision and Impact
According to Yazeed Al-Humied, Deputy Governor of Saudi PIF, the project is a cornerstone for:
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Advancing the Kingdom’s automotive sector
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Creating high-skilled jobs in mobility and engineering
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Attracting global tech and innovation to Saudi Arabia
It’s not just a production facility — it’s a launchpad for economic transformation.
Why KAEC?
The factory’s location at KAEC offers:
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Direct access to global markets via the Red Sea
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World-class infrastructure and logistics
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Proximity to key players like Lucid Motors and Ceer
This location sets the stage for a fully integrated automotive ecosystem in the Middle East.
Looking Ahead
Hyundai’s leadership calls this the beginning of a new era in:
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Knowledge transfer and local talent development
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Sustainable innovation in car manufacturing
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Regional industrial excellence
The Hyundai Middle East Factory is perfectly aligned with Saudi Arabia’s Vision 2030, aiming to establish the country as a global manufacturing and mobility powerhouse.
In Summary:
The Hyundai Middle East Factory isn’t just a milestone for the company — it’s a bold step toward reshaping the future of automotive innovation in the region.
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