RIYADH, SAUDI ARABIA – Saudi Ministry of Industry and Mineral Resources has signed a memorandum of understanding with Hyundai Motor Company for building an assembly plant in the country.
The MoU was signed in the presence of Minister of Industry and Mineral Resources Bandar Al-Khorayef, Minister of Economy and Planning Faisal Al-Ibrahim.
Deputy Minister of Industry and Mineral Resources Eng. Osamah Al-Zamel, CEO of of the Saudi Industrial Development Fund Dr. Ibrahim Al-Mojel and Hyundai Motor Company Executive Vice President and Head of Global Operations Division Seon Seob Kim were also present on the occasion.
The agreement aims at enhancing cooperation in a way that realizes the national strategic goals for industry in developing local manufacturing capabilities and in line with the targets of the Saudi Vision 2030 that seeks to diversify the economic base in Saudi Arabia.
The MoU stipulates building an assembly plant with the CKD system for electric cars and internal combustion engines cars in Saudi Arabia.
Hyundai had earlier showed interest to explore joint investment opportunities with the Kingdom.
The Saudi National Industry Strategy seeks to localize the vehicle sector and increase investment opportunities.
Light cars sales rates are expected to increase in the Kingdom by 2.2 percent during the upcoming decade.
The agreement represents a regional opportunity considering the volume of the light vehicle market that show a double increase rate compared to the international rate over the next 10 years.
The Kingdom is interested in developing this sector that will lead to attracting and developing the workforce with focus on products with high added value.