Saudi Arabia Wealth Fund and Hyundai, the giant automobile company in South Korea have made a joint sign-off to build a plant for car manufacturing in the Kingdom of Saudi Arabia. There will be an estimated investment value of over $500 Million to complete the project. This project is an initiative to bolster the automotive industry of the kingdom.

This vast project is a partnered venture between Hyundai and the Public Investment Fund (PIF). As per the report shared on Sunday, October 23, 2023, PIF (Public Investment Fund) is going to hold a stake share of 70 percent and Hyundai will share by owning the remaining share.

This mutual venture aims to manufacture 50,000 vehicles every year, which will include both electric-powered vehicles (EPV) and internal combustion engines. The car manufacturing plant is going to launch by 2024 and is scheduled to begin its production process by 2026.

The Kingdom of Saudi Arabia will witness a massive growth in the nation’s automotive industry by helping PIF(Public Investment Fund).

The deputy governor and head of Middle East and North Africa investments, Yazeed Al-Humied said, “One of our 13 priority sectors, our investment in vehicle manufacturing with Hyundai Motor Company is a milestone, aligning closely with our stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia’s automotive and mobility value chain.”

The holder of the largest economy in the world, the Kingdom of Saudi Arabia is more focused and aiming to build a domestic Electric Vehicle market, as a major step towards the fulfillment of the nation’s Vision 2030, a complete strategy to transform the economy away from oil usage.

Additionally, PIF along with the Saudi Electricity Company launched an EV infrastructure company in October 2023, that aims to build 5000 fast charging systems by 2030 across the kingdom.

To boost manufacturing more Electric Vehicles in the kingdom,  PIF has launched a company, that will equally enlarge the capabilities of the local supply chains for the automobile industries.

Tasaru Mobility Investments or the National Automotive and Mobility Investment Company, is a new company with a vision to operate partnership and investment plans strategically with local, as well as global companies.

Lucid Group, a luxury electric vehicle manufacturer given ground by PIF back in September 2023, announced the launch of their first international electric vehicle manufacturing plant in the Kingdom of Saudi Arabia. The manufacturing plant has the goal to produce over 155,00 electric vehicles in a year.

Last year  November, PIF also introduced Saudi Arabia’s first electric vehicle manufacturing brand, Ceer. The brand aims to draw the interest of more than $150 million in investment from foreign investors and build an opportunity of up to 30,000 direct and indirect jobs in various fields.

The new manufacturing plant by PIF in collaboration with Hyundai will “create thousands of jobs and allow for knowledge and expertise transfer”.

As per the report shared by PIF, the initiative to localise Hyundai cars will boost the development of the mobility and automotive industry in the Kingdom of Saudi Arabia. This step will also attract more investment in this sector, which will eventually help to grow and spread the economy.

Hyundai, which is the third biggest vehicle manufacturer in the world, will provide complete commercial and technical backing at the manufacturing plant.

The collaborative venture has the capability “to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region,” said Jaehoon Chang, the president and chief executive of Hyundai.

“Our joint efforts will create opportunities for innovation and environmental progress,” the PIF said.

Fulfilling the agreement of the joint venture is subject to obtaining major acceptance from the relevant authorities and encountering all the required conditions.