Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hyundai Motor breaks ground on 1st Middle East plant in Saudi Arabia
Participants in the groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME) pose for a photo at the King Salman Automotive Cluster in Saudi Arabia, Wednesday (local time). From left, HMMME CEO Park Won-gyun, HMMME Chairman of Board Ahmed Ali Al-Subaey, Public Investment Fund Deputy Gov. Yazeed Al-Humied, Minister of Industry and Mineral Resources of Saudi Arabia Bandar Ibrahim Al-Khorayef, Hyundai Motor Group Vice Chairman Chang Jae-hoon and Acting Korean Ambassador to Saudi Arabia Moon Byung-jun. Courtesy of Hyundai Motor
By Nam Hyun-woo
Carmaker stresses domestic investments will continue
Hyundai Motor broke ground on its first Middle East manufacturing base in Saudi Arabia, Wednesday (local time), marking a key milestone for the carmaker’s global expansion.
According to the company, it held a groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME) at the King Salman Automotive Cluster in Saudi Arabia.
The ceremony was attended by over 200 dignitaries and officials from both countries, including Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Ibrahim Al-Khorayef, PIF Deputy Gov. Yazeed, Hyundai Motor Group Vice Chairman Chang Jae-hoon and Acting Korean Ambassador to Saudi Arabia Moon Byung-jun.
HMMME is a joint venture between Hyundai Motor and Saudi Arabia's Public Investment Fund (PIF), holding 30 percent and 70 percent stakes, respectively. Production is scheduled to start in the fourth quarter of 2026 with an annual capacity of 50,000 vehicles, including both electric vehicles (EVs) and internal combustion engine models.
An artist's impression of Hyundai Motor Manufacturing Middle East / Courtesy of Hyundai Motor
The plant will be a complete knock-down manufacturing system, in which parts will be sourced from abroad and assembled locally to address the lack of an established automotive industry in the region.
The plant will be established in line with Saudi Arabia's strategy to develop its domestic automotive industry. Its location, King Salman Park, is a newly developed automotive manufacturing hub developed as part of a broader push to foster the domestic car industry.
“The Saudi Arabian government is paying close attention to the automotive industry,” Chang told reporters during the ceremony. “Along with us, two other carmakers are also entering the market, and we believe our role will be significant in this early stage of the industry’s development here.”
The plant is also significant for Hyundai Motor’s strategy in the Middle Eastern market.
Saudi Arabia is considered the largest auto market in the Middle East. Of the 2.49 million vehicles sold in the region last year, 840,000 units, or 34 percent, were sold in Saudi Arabia, with Hyundai selling 136,000 for 9 percent year-on-year growth.
“Establishing a production plant in Saudi Arabia carries significant meaning due to the country’s influence not only within the Gulf Cooperation Council region but also across North Africa and surrounding areas,” Chang said. “We will continue working to maintain strong competitiveness in both our products and services as we move forward.”
The HMMME is the latest of the group’s recent investments. Hyundai Motor Group Executive Chairman Chung Euisun said last month that the group will invest $21 billion over the next four years.
The group pledged that investments will continue both in and outside of Korea, with Chang emphasizing that “expanding overseas investment does not come at the expense of domestic investment.”
He noted that the group will continue investing not only in domestic mobility but also in artificial intelligence, robotics and energy, adding “there are distinct roles for our domestic and overseas operations.”