Hyundai Motor, Saudi Arabia agree to advance car manufacturing in Kingdom

South Korean auto giant Hyundai Motor Group and Saudi Arabia have agreed to nurture the automotive industry in the Middle Eastern country, the Saudi industry ministry said Saturday.

According to Yonhap news agency, the two sides signed a memorandum of understanding (MOU) “to advance automotive production in the Kingdom,” the ministry tweeted.

The memorandum of understanding aims to enhance joint cooperation for the auto industry in the region to achieve the goals of the national strategy for the industry in developing local manufacturing capabilities and in line with the objectives of the Kingdom’s Vision 2030, which seeks to diversify the economic base in the Kingdom.

The memorandum of understanding stipulates planning to build a complete assembly plant (with the CKD system) for electric cars and internal combustion engine cars to be based in Saudi Arabia after Hyundai showed great interest and plans to explore joint investment opportunities with the Kingdom to work to achieve leadership in business and projects that ensure safety and environmental sustainability.

In November, Hyundai Motor Group’s Chairman Euisun Chung, Samsung Electronics Executive Chairman Lee Jae-yong, and other South Korean business leaders met Saudi Crown Prince Mohammed bin Salman in Seoul and discussed business cooperation.

President Yoon Suk Yeol and the Saudi Prince vowed to enhance bilateral cooperation in a wide range of major industry fields, including infrastructure and energy, during their November meeting.