Hyundai has started building its first manufacturing plant in the Middle East, choosing King Abdullah Economic City on Saudi Arabia’s Red Sea coast as the location. The new facility, called Hyundai Motor Manufacturing Middle East (HMMME), is part of the King Salman Automotive Cluster, according to Hyundai.
This project is a collaboration between South Korea’s Hyundai and Saudi Arabia’s Public Investment Fund (PIF), with PIF holding a 70% share and Hyundai 30%. Officials from both countries marked the beginning of construction at a ceremony held at the site.
Production at the plant is set to begin in late 2026, with plans to produce up to 50,000 vehicles each year, including both traditional and electric models. Hyundai aims to boost Saudi Arabia’s automotive sector by creating thousands of jobs and encouraging skills development through this venture.
In addition, Hyundai is working with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company to promote hydrogen-powered transport. This includes developing hydrogen vehicle infrastructure and launching a pilot program for hydrogen electric buses.
This initiative highlights Hyundai’s commitment to regional manufacturing and supports Saudi Arabia’s efforts to expand its industrial and mobility sectors.
