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Korean automaker Hyundai has officially begun construction on its first manufacturing facility in the Middle East, setting up a new plant in Saudi Arabia, the company announced on Thursday.
According to a release from Hyundai, the facility—named Hyundai Motor Manufacturing Middle East (HMMME)—is located within the King Salman Automotive Cluster, a recently announced industrial zone in King Abdullah Economic City (KAEC), on the Red Sea coast.
HMMME is a joint venture between South Korea’s Hyundai and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), with PIF holding a 70% stake and Hyundai the remaining 30%.
A ceremony for HMMME was held on Wednesday at the cluster site, where Hyundai officially announced the start of construction for its new facility in Saudi Arabia.
The plant aims to start production by the fourth quarter of 2026 with an annual output capacity of 50,000 units, including both internal combustion engine (ICE) and electric vehicle (EV) models.
This initiative marks a significant step for Hyundai as it moves into regional manufacturing, aiming to capitalize on the Kingdom’s expanding industrial base, the Korean company said. By drawing on local talent, the project is expected to create thousands of jobs while supporting skills development and knowledge transfer. The localization of vehicle production is also expected to stimulate growth in Saudi Arabia’s automotive and mobility ecosystem.
In parallel, Hyundai is teaming up with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company to build a hydrogen mobility ecosystem. The collaboration includes plans to develop hydrogen-powered transport infrastructure and launch a pilot project involving hydrogen electric buses.
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