Samsung, SK Hynix Shares Plunge as China Chip Competition Grows 
TSMC Profit Set to Surge 65% as AI Chip Demand Drives Record Earnings 
Moonshot AI Executives Seek Settlement Ahead of Hong Kong IPO 
FAA Warns US Airlines Over Saudi Arabia Flight Risks 
Coinbase CEO Backs SEC Accredited Investor Reform 
Epic Games Delays Disney Shooter, Shifts to AI-First Development 
Orsted to Take Full Ownership of UK Offshore Wind Farm for £15 Million 
Most Americans Oppose Election Betting on Prediction Markets, Poll Finds 
Apple Supplier Luxshare Faces US Patent Probe, Sees Limited Impact 
Elon Musk Donates $366 Million to 2026 US Midterms 
Nvidia’s China AI Chip Market Share Falls to 34% as Huawei Gains Ground 
Nasdaq Faces Pullback to 26,225 Despite Bullish Outlook, UBS Says 
Ethereum Foundation-Linked Wallets Move $11.13M in ETH to Kraken 
Arthur Hayes Announces FLOP Testnet Launch Within Weeks 
Visa Wins China Approval to Prepare Domestic Payments Expansion 
European Auto Stocks Rise as EU-China Trade Deal Targets Hybrid Imports 
Bumble Shares Surge 50% on $1 Billion Buyout Talks 
Add as a preferred source on Google
Hyundai Motor revealed its new joint venture deal with the Public Investment Fund (PIF), Saudi's sovereign wealth fund, which is also said to be one of the largest state-owned investment funds in the world. Under the agreement, the two will build a new vehicle production plant in Saudi Arabia.
Hyundai Motor and PIF will establish the new automotive facility, and this was confirmed by South Korea's President Yoon Suk Yeol, who visited the Middle Eastern country for a summit. According to Reuters, the latter will own a 70% stake in the JV, and Hyundai Motor will hold the remaining 30%.
Production Plans and Start of Construction Date
The joint venture was revealed during the Saudi-Korean Business Forum, and at that time, it was also shared that the goal for the JV is to produce 50,000 units of vehicles per year. Some vehicles to be made in the facility include the internal combustion engine (ICE) and electric vehicle (EV) units.
Hyundai Motor and PIF will hold the groundbreaking ceremony sometime in 2024 and start production by 2026.
Based on estimation, the project's total investment will likely exceed the $500 million mark. The new plant is also expected to generate thousands of new jobs for the locals while attracting additional industry investments.
Hyundai's First Factory in the Middle East
Yonhap News Agency reported that the upcoming plant will be Hyundai Motor's first in the Middle East region. This business cooperation was approved as part of the Saudi Vision 2030 government strategy.
It was also noted that Saudi Arabia is vigorously promoting the development of its own automotive business to diversify its growth drivers. This comes as the country is exerting more efforts in finding other businesses to help it reduce its heavy dependence on its oil trade.
"Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia's automotive ecosystem – one of our 13 priority sectors," PIF's deputy governor and head of MENA investments, Yazeed A. Al-Humied, said in a press release. "Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia's automotive and mobility value chain."
Photo by: Hyundai Motor Press Release
