Hyundai Motor is pressing ahead with its Middle East expansion, strengthening strategic ties with Public Investment Fund as it builds a regional mobility hub in Saudi Arabia despite escalating geopolitical risks.
The company reaffirmed its partnership with the Saudi fund during a Ramadan iftar event held March 18 local time, where executives and engineers met with key stakeholders to discuss the future of the kingdom’s automotive sector and opportunities tied to Vision 2030.
The outreach comes as Hyundai moves forward with a joint manufacturing venture in King Abdullah Economic City, a flagship industrial zone central to Saudi Arabia’s economic diversification plans. The facility, backed by roughly $500 million in investment, is structured as a joint venture in which the Public Investment Fund holds a 70% stake and Hyundai the remaining 30%.
The plant, expected to begin operations in the fourth quarter, will have an annual capacity of about 50,000 vehicles, producing both electric and internal combustion models on shared lines. It marks Hyundai’s first production base in the Middle East and is expected to serve not only the Saudi domestic market but also export demand across the broader Middle East and North Africa region.
The project underscores Hyundai’s ambition to move beyond vehicle exports and establish a localized manufacturing and technology footprint aligned with Saudi Arabia’s long-term industrial strategy.
Rising military tensions across the Middle East, however, are prompting caution among South Korean companies operating in the region. Naver has shifted its Saudi operations to remote work and established emergency communication lines, while Kakao Mobility is closely monitoring developments after advancing a mobility solutions project tied to a large-scale Saudi urban development initiative.
Hyundai has also taken precautionary steps, including relocating some expatriate family members, while maintaining full operational continuity. The company has set up a 24-hour communication system between headquarters and its Saudi operations to ensure the project remains on track.
Executives view the iftar gathering as a signal of commitment, demonstrating Hyundai’s willingness to sustain direct engagement with local partners and its workforce even amid heightened security concerns.
By anchoring production in Saudi Arabia, Hyundai aims to leverage advanced manufacturing capabilities alongside the kingdom’s infrastructure investments to position itself as a key player in the region’s evolving mobility ecosystem.
