Hyundai’s First-Ever Factory in the Middle East! Backed by Saudi PIF
Game on, and Saudi Arabia just moved first.
Hyundai Motor has officially broken ground on its first manufacturing facility in the Middle East, a significant move that solidifies Saudi Arabia's position as the region’s industrial heavyweight. The factory will be built in the King Salman Automotive Cluster in King Abdullah Economic City (KAEC) a location picked not for show, but for strategic domination: direct access to global markets, integrated logistics, and proximity to other automotive giants.
This is a joint venture led by Saudi’s Public Investment Fund (PIF) holding a commanding 70% stake, with Hyundai holding the rest. Backed by the full institutional weight of the Kingdom, the groundbreaking ceremony was led by Minister of Industry and Mineral Resources, Bandar Al-Khorayef, reinforcing the government's unwavering commitment to localisation and industrial transformation.
The Numbers That Matter:
Launch: Operations to begin in Q4 2026
Capacity: 50,000 vehicles annually
Product mix: Both internal combustion and electric vehicles. Yes! Saudi Arabia is building combustion and electric vehicles (EVs) side by side, a smart hedge that aligns with the future of mobility without ignoring current market realities.
“This project is a milestone in building national capabilities and attracting advanced technologies,”– Yazeed Al-Humied, Deputy Governor of PIF
Let’s talk ecosystem: KAEC is part of a growing cluster already home to Lucid Motors, Ceer, and a network of suppliers ready to scale. What’s taking shape is a fully integrated automotive powerhouse on the Red Sea engineered for exports, designed for innovation, and driven by Vision 2030.
What Hyundai Sees — and Why It Matters:
Hyundai isn’t here to assemble parts and ship them out. They’ve committed to:
Knowledge transfer
Upskilling local talent
Embedding advanced manufacturing techniques in the Kingdom
This plant is a launchpad for localisation, training, and industrial leadership not a satellite for overseas profits.
Why This Changes the Game for Everyone:
Thousands of high-skilled jobs for Saudis
A platform for global EV supply chains to land in the Gulf
A sign to the world that Saudi isn’t talking about transformation, it’s delivering it
Businesses — Are You Still Waiting?
If you’re watching this from the sidelines, ask yourself one question: how many global manufacturers need to move in before you realise the region isn’t "emerging" it’s arrived?
While Hyundai breaks ground, many are still tinkering with “market entry strategies.” Saudi Arabia is rolling out facilities, funding, workforce planning, and demand.
If your business touches mobility, manufacturing, clean tech, or vocational training, your moment is now. The door is open, but it won’t stay that way forever.
R Consultancy Group works directly with Vision 2030 stakeholders, including PIF-backed entities, giga-projects, and government ministries. We’re here to help you move from idea to execution — before the competition wakes up.
