Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone
The ceremony is a significant milestone that marks another step in the development of the automotive industry in Saudi Arabia.
PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30 percent.
The manufacturing plant, Hyundai's first facility in the Middle East, will roll out its first vehicle by the fourth quarter of 2026 and targets an annual production of 50,000 vehicles.
This will include both internal combustion engines and electric vehicles.
Yazeed A. Alhumied, deputy governor and head of MENA Investments at PIF, said: 'This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia.
"PIF will continue to enable and accelerate the growth of Saudi Arabia's automotive ecosystem through partnerships. This joint venture underscores PIF's commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia's automotive and mobility sector.'
Jaehoon Chang, Hyundai Motor Group vice chair, said: "Today's groundbreaking marks the beginning of a new chapter for both the Kingdom and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation.
"Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030."
Wongyun Park, vice president and CEO of Hyundai Motor Manufacturing Middle East, said: "With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom."
HMMME is building a foundation for a new era of automotive manufacturing in Saudi Arabia.
Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development.
The localization of Hyundai's vehicles will accelerate the growth of Saudi Arabia's automotive and mobility ecosystem and pave the way for a new industrial future.
This partnership is one in a series of PIF initiatives establishing Saudi Arabia as a global automotive player.
Together, these initiatives are driving transformation in the sector and boosting domestic manufacturing capabilities, infrastructure, and supply chains.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Argaam
11 minutes ago
- Argaam
Tadawul to study feasibility of Damascus Stock Exchange project: Al-Falih
Saudi Arabia's Minister of Investment, Khalid Al-Falih, said that the Saudi Stock Exchange (Tadawul) began preparations to conduct a comprehensive feasibility study for establishing and operating the Damascus Stock Exchange through Tadawul. Speaking during the opening session of the Saudi-Syrian Roundtable held in Riyadh, Al-Falih pointed out that the Kingdom is set to sign a bilateral investment promotion and protection agreement with Syria later today. He highlighted that significant progress was achieved on several agreements and memoranda of understanding signed recently, adding that the ministry is working to overcome economic challenges and obstacles in Syria. Al-Falih also revealed that the ministry supports a proposal from the private sector to establish a Fund of Funds aimed at channeling Saudi investments into Syria. The initiative is expected to serve as a key platform for structured and well-governed investment activity, aligned with the shared goals of both countries. It also aims to accelerate the pace of investment, ensure exceptional returns, and secure financing volumes that meet the evolving needs of the market. In the real estate sector, Al-Falih highlighted that the projects signed during the Saudi-Syrian Forum have now entered the implementation phase, expressing hope to see tangible outcomes in the near future.
Arab News
41 minutes ago
- Arab News
GCC property market set to extend rally in 2025: Markaz
RIYADH: The Gulf Cooperation Council's property market is set to extend its growth momentum into the second half of the year, supported by lower interest rates, government investment, and resilient investor demand, a new analysis showed. In its latest report, Kuwait Financial Center, also known as Markaz, noted strong activity in Saudi Arabia, the UAE, and Kuwait during the first half of the year, driven by rising property values and strong sales across the residential, commercial, and hospitality segments. The analysis underscores the expansion of Saudi Arabia's real estate sector as the Kingdom seeks to position itself as a leading business and tourism hub by the end of the decade. The Kingdom's Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024. 'With macroeconomic indicators showing signs of continued recovery, Markaz expects real estate markets in Kuwait, Saudi Arabia, and the UAE to maintain upward momentum through the second half of 2025,' Markaz said. It added: 'Lower interest rates, fiscal support, and sustained government investment in economic diversification are anticipated to drive growth and market confidence.' The analysis said that while some markets face fiscal pressures, the overall outlook for the GCC real estate sector remains 'positive,' offering 'ongoing opportunities for investors, developers, and stakeholders.' Saudi Arabia: diversification boosts demand Saudi Arabia's property market maintained strong performance in the first quarter, underpinned by a 4.3 percent year-on-year rise in the real estate price index and a 37 percent annual increase in sales, the report said. Markaz also said that demand for commercial properties remains strong, supported by non-oil economic growth and sectoral diversification. In July, a report by credit rating agency S&P Global echoed similar views, highlighting that international retail brands attracted by social and economic shifts in Saudi Arabia are poised to drive further growth in the real estate sector. S&P Global also pointed to favorable prospects for residential real estate, with young Saudi families increasingly relocating to urban centers in search of work opportunities. In June, global consultancy Knight Frank also highlighted the Kingdom's growing property market, noting that rents for Grade A office space in Riyadh reached SR2,700 ($719.95) per sq. meter by the end of the first quarter, up 23 percent compared with the same period last year. Markaz reported that Saudi Arabia's fiscal deficit is expected to widen to 4.9 percent of gross domestic product, from 2.8 percent in 2024, largely due to lower oil prices. Although reduced revenues could impact government spending and project awards, the Kingdom has indicated plans to sustain investment in economic diversification, the report added. 'Based on macroeconomic indicators and real estate trends, Markaz believes that Saudi Arabia's real estate market remains in the accelerating phase in the first half of 2025 and is expected to sustain this momentum through the second half,' added Markaz. UAE: transactions hit record highs According to Markaz, the UAE's real estate market delivered strong results in the first quarter, with transaction values reaching 239 billion dirhams ($65 billion). Dubai generated 142 billion dirhams in sales across 45,077 transactions, representing a 30 percent year-over-year increase. The report added that residential, office, and hospitality segments will continue to drive the UAE's property sector, supported by strong demand, interest rate cuts, rising tourist inflows, and limited supply in prime locations. In 2024, Dubai recorded a total transaction value of 761 billion dirhams, up 20 percent from 2023. The emirate also logged 226,000 transactions, a 36 percent annual rise, and attracted more than 110,000 new real estate investors, up 55 percent year on year. Dubai also continued to outperform other global markets in rental yield at 7.6 percent as of May, compared with 5.3 percent in New York, 3.2 percent in Singapore, and 3.1 percent in London. 'Markaz forecasts that the UAE's real estate sector will continue its upward trajectory in the second half of 2025, marked by steady appreciation in land prices and rental rates in both Dubai and Abu Dhabi,' the report said. Kuwait: recovery gains pace Kuwait's real estate market also continued its recovery in the first quarter of 2025, supported by rising land prices and rental values in the investment and commercial segments, the report said. The value of real estate sales reached 896 million Kuwaiti dinars ($2.93 billion) in the first quarter, representing a 45 percent year-on-year rise. Sales in the residential and commercial sectors grew 38.5 percent and 22.9 percent, respectively, while the investment segment advanced 49 percent during the same period. The number of transactions rose 20.9 percent year on year, with residential and commercial deals climbing 11.7 percent and 163.6 percent, respectively. The investment segment recorded a 29.7 percent increase, supported by a stable rise in the expatriate population. The report projected Kuwait's real GDP to grow 1.9 percent, rebounding from a 2.8 percent contraction in 2024. The recovery, fueled by higher oil GDP and steady non-oil activity, including project spending, consumer demand, and legislative reforms, is expected to bolster demand in the commercial and industrial property markets. 'Despite evolving macroeconomic dynamics, the outlook for the GCC real estate sector remains positive, with solid investor interest, government-backed initiatives, and sectoral diversification continuing to support long-term growth,' said Markaz. 'Markaz believes that real estate will remain a key contributor to the region's economic development through the second half of 2025 and beyond,' it addded
Argaam
2 hours ago
- Argaam
Al Mawarid goes ex-dividend today
Shares of Tadawul -listed Al Mawarid Manpower Co. trade ex-dividend today, Aug. 18. The company's board of directors earlier decided to pay a cash dividend of SAR 1.35 per share, or 13.5% of capital, for the six-month period. The payout is scheduled for Aug. 28.
