Hyundai Motor Group’s Saudi Arabian joint venture, Hyundai Motor Manufacturing Middle East (HMMME), has broken ground on a vehicle assembly plant in the Kingdom. This is the South Korean automaker’s first assembly plant to be built in the region, a move designed to strengthen its presence in the Middle East and North African markets.
To mark the occasion Hyundai Motor Manufacturing Middle East (HMMME), a joint venture 70%-owned by Saudi’s Public Investment Fund (PIF) and 30% by Hyundai Motor Company, held a ceremony at a venue with the King Salman Automotive Cluster in King Abdullah Economic City (KAEC).
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The new facility will have an initial production capacity of 50,000 vehicles per year, including internal combustion engine (ICE) and battery-electric vehicles, which it plans to sell domestically and export to other markets in the region. HMMME said it expects to begin production operations at the plant in the fourth quarter of 2026.
HMMME claims to be “building the foundation for a new era of automotive manufacturing in Saudi Arabia. Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development. The localization of Hyundai’s vehicles will accelerate the growth of Saudi Arabia’s automotive and mobility ecosystem and pave the way for a new industrial future.”
Yazeed A Alhumied, PIF’s deputy governor and head of Middle East and North Africa (MENA) Investments, said in a statement: “This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”
Hyundai Motor Group vice chairman, Jaehoon Chang, stated: “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 the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030.”
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By GlobalDataHMMME’s vice president and CEO, Wongyun Park, further discussed the project: “With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom.”
