Hyundai's Leap into Saudi Arabia: A Joint Venture Set to Transform the Automotive Landscape

In 2023, Hyundai and the Public Investment Fund (PIF) of Saudi Arabia unveiled an ambitious plan to establish a car manufacturing facility in King Abdullah Economic City. This initiative materialized through their joint venture, HMMME, with PIF owning a majority stake of 70%, while Hyundai holds the remaining 30%. The factory is set to commence operations by the end of 2026, boasting an annual production capacity of 50,000 vehicles, encompassing both electric and combustion engine models. The investment for this project is estimated at over $500 million, aiming to bolster Saudi Arabia's emergence as a global automotive hub.
HMMME: Driving Innovation in the Middle East
Amidst the golden hues of autumn, Hyundai embarked on its maiden manufacturing endeavor in the Middle East through the establishment of HMMME. Located strategically in King Abdullah Economic City, the state-of-the-art facility anticipates its launch in late 2026. With an impressive annual output potential of 50,000 units, the plant will cater to both electric and conventional vehicle demands. Backed by a significant investment exceeding €446 million, this venture marks a pivotal chapter in Saudi Arabia's journey towards becoming a prominent player in the global automotive industry.
HMMME operates under a robust ownership structure, where PIF commands a dominant shareholding of 70%, complemented by Hyundai's 30% stake. This collaboration not only signifies Hyundai's commitment to regional growth but also underscores Saudi Arabia's strategic vision to attract cutting-edge technology and skilled employment opportunities within its borders. Deputy Governor and Head of MENA Investments at PIF, Yazeed A. Alhumied, highlighted the significance of this milestone, reinforcing the Kingdom's drive to fortify its automotive ecosystem through innovative partnerships.
Vice President and CEO of Hyundai Motor Manufacturing Middle East, Wongyun Park, echoed similar sentiments, emphasizing the transformative role of HMMME in shaping a new industrial era in the region. Characterized by highly automated processes, the facility promises to serve as a cornerstone for sustainable industrial development.
This partnership aligns with other PIF-led initiatives, such as Lucid Motors' electric car factory, already operational in King Abdullah Economic City since September 2023. While Lucid employs a semi-knocked-down assembly line, Hyundai's approach focuses on advanced automation techniques to enhance efficiency and quality.
From a journalist's perspective, this collaboration exemplifies the synergy between technological advancement and strategic investment. It highlights the importance of fostering local capabilities while attracting global expertise to catalyze economic diversification. By embracing innovation and collaboration, countries like Saudi Arabia can redefine their roles in the international market, paving the way for a brighter, more sustainable future.