Hyundai to build Saudi car plant jointly with #Saudi wealth fund | Reuters

Hyundai to build Saudi car plant jointly with Saudi wealth fund | Reuters

South Korea's Hyundai Motor Group (005380.KS) will build a car plant in Saudi Arabia jointly with the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, South Korea's President Yoon Suk Yeol said on Sunday.

Yoon was speaking in Riyadh where the PIF and Hyundai signed the agreement on the plant, which will have an annual production capacity of 50,000 electric and gas-powered cars and will be the first South Korean automobile factory in the Middle East, a joint statement said.

PIF will hold a 70% stake in the new joint venture with Hyundai holding the remaining 30%. Total investment for the project is estimated to exceed $500 million, it added.

Hyundai Motor Group, the world's No. 3 auto group by sales, is embarking on manufacturing in the Gulf state as Saudi Arabia has been trying to shift its economy away from oil and is aiming to manufacture more than 300,000 cars annually by 2030.