- Strategic Partnership Between Saudi Arabia and Hyundai
- Supporting Vision 2030 and Localization of Industry
- Advantages of Korean Cars in the Saudi Market
- Investment Opportunities and Professional Development
- Positive Impact on the Saudi Economy
- Future of Korean Cars in Saudi Arabia
Saudi Arabia is witnessing a significant transformation in its industrial and manufacturing sectors as part of Vision 2030, which aims to diversify the economy and boost local industries. In this context, Korean investments, especially from Hyundai Motor Company, play a pivotal role in developing the automotive industry in Saudi Arabia and opening new horizons for economic and technological cooperation between the two countries.
Strategic Partnership Between Saudi Arabia and Hyundai
In a historic move, Hyundai Motor Company announced the establishment of the first car manufacturing plant in the Middle East, located in the King Salman Automotive District within King Abdullah Economic City. This joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor sees the PIF owning 70% of the project, while Hyundai holds 30%.
The factory aims to produce 50,000 vehicles annually, including internal combustion engine cars as well as electric vehicles, with plans to launch the first locally manufactured car in the last quarter of 2026. This project is expected to create thousands of jobs and develop Saudi skills in manufacturing and advanced technologies.
Supporting Vision 2030 and Localization of Industry
These investments align with Saudi Vision 2030’s goals to reduce oil dependency and develop sustainable industrial sectors. Through this project, the Kingdom seeks to build an integrated industrial ecosystem that includes car manufacturing, clean energy infrastructure development, and advancement in sustainable mobility technologies, including hydrogen technologies.
Hyundai is also collaborating with local and international institutions to develop a hydrogen mobility ecosystem, including hydrogen-powered electric buses, reflecting a mutual commitment to environmental innovation.
Advantages of Korean Cars in the Saudi Market
Korean vehicles are gaining increasing popularity in Saudi Arabia due to their combination of high quality, advanced technology, and competitive pricing. Korean manufacturers offer a wide range of models to meet Saudi consumer needs, from economical to luxury cars, including electric and hybrid vehicles that enjoy growing government support.
Import procedures for Korean cars into Saudi Arabia are streamlined, with compliance required for local standards including safety requirements, adaptation to hot climate conditions, and ensuring left-hand drive vehicles.
Investment Opportunities and Professional Development
Hyundai’s factory in Saudi Arabia represents a vital platform for technical skill development and vocational training, with plans to train thousands of Saudis on the latest manufacturing and automotive innovation technologies. This contributes to building a strong national industrial base supporting economic growth and sustainable job creation.
Positive Impact on the Saudi Economy
The Hyundai factory is expected to strengthen local supply chains and support small and medium enterprises that form part of the manufacturing ecosystem, enhancing Saudi Arabia’s competitiveness regionally and globally.
Local production by Hyundai will reduce import costs and increase consumer options, especially with rising demand for electric and hybrid cars amid government initiatives encouraging clean mobility.
Future of Korean Cars in Saudi Arabia
With production set to begin in 2026, Korean companies are opening new horizons in the Saudi market by offering locally manufactured vehicles that combine global quality with affordable costs. This step supports the Kingdom’s efforts to transition to a more sustainable economy relying on advanced technologies.
Korean investments in Saudi Arabia’s automotive sector mark a milestone reflecting deep economic cooperation and Saudi Arabia’s ambition to build an advanced industrial sector. Through Hyundai’s new factory, the Kingdom benefits from Korea’s advanced manufacturing expertise and unlocks broad growth opportunities in sustainable mobility, aligning with Vision 2030 goals.
