Hyundai Initiates First Middle East Plant in KSA

2025-05-15 04:20:24

(MENAFN) South Korean car manufacturer Hyundai announced on Thursday that it has commenced construction on a new production facility in Saudi Arabia, marking its inaugural manufacturing hub in the Middle East.

According to a report by a news agency, a ceremony was held on Wednesday to celebrate the groundbreaking of the Hyundai Motor Manufacturing Middle East (HMMME) facility.

The event took place at the King Salman Automotive Cluster, situated in King Abdullah Economic City, representing a major step in Hyundai's international growth strategy.

The HMMME project is a collaborative venture between Hyundai and Saudi Arabia’s Public Investment Fund, formed with a 30-70 ownership arrangement.

The plant is expected to begin operations in the final quarter of 2026, with a projected yearly output of 50,000 vehicles, which will include both electric vehicles and models powered by internal combustion engines.

In addition to manufacturing, Hyundai has outlined plans to foster a hydrogen mobility network in Saudi Arabia, in collaboration with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company.

As part of this partnership, the stakeholders will collaborate in several domains, such as building a hydrogen-based transportation infrastructure and launching a pilot initiative featuring hydrogen-powered electric buses.

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