According to the Saudi Press Agency (SPA), the Ministry of Industry of the Kingdom of Saudi Arabia and Hyundai Motors of South Korea have agreed to develop a factory in the Kingdom for the final assembly of electric vehicles.
According to the memorandum of agreement, Saudi Arabia will serve as the location for a full assembly factory that will use the “CKD” system to assemble both the internal combustion engine and electric vehicles.
After Hyundai expressed keen interest and plans to look into potential joint investment opportunities with the Kingdom, the agreement was finally signed.
In order to meet the goals of the national policy for the industry in terms of fostering domestic manufacturing capacity, Saudi Arabia seeks to localize the automotive industry and enhance investment prospects there.
