The Ministry of Industry and Mineral Resources of Saudi Arabia has signed a Memorandum of Understanding with South Korean Hyundai Motor. The Memorandum of Understanding aims to expand the joint cooperation of the automotive industry in the region to achieve the goals of the national industry strategy to develop local production capacity and in line with the goals of the Kingdom Vision 2030, aimed at diversifying the economic base in the Kingdom.
A statement from the Ministry of Industry today, Saturday, said that the MoU provides for the planning of the construction of a complete assembly plant (with CKD system) for electric and internal combustion engine vehicles, which will be based in Saudi Arabia.
The ministry said it came after Hyundai showed strong interest and plans to explore joint investment opportunities with the Kingdom to work towards achieving business leadership and safety and environmental sustainability projects.
Notably, the national strategy for industry aims to localize the automotive sector and increase investment opportunities in it, and passenger car sales in the Kingdom are expected to grow by 2.2% over the next decade.
The national strategy also aims to localize the sector to bring great benefits to the Kingdom as it represents an attractive regional opportunity given the size of the passenger car market and expectations that indicate its growth will double from the global halving. speed in the next ten years.
The Kingdom is interested in the development of this sector, which will lead to the attraction, development and development of the workforce with a focus on high value-added products.