PIF, Hyundai sign deal to establish over $500m auto plant in Saudi Arabia

RIYADH: Saudi Arabia and South Korea signed 52 memorandums of understanding for cooperation in various fields on the sidelines of the Saudi-Korean Investment Forum on Sunday.

The agreements included tourism, supply chains, real estate development, technology, and transportation and span across various sectors, as reported by El-Ekhbariya TV. 

The Saudi-Korean Investment Forum features a multitude of sessions and meetings, both at the ministerial level and among executives and corporate leaders. The event coincides with the visit of South Korean President Yoon Suk Yeol to the Kingdom, highlighting the strong investment relations between Saudi Arabia and Korea.

According to El-Ekhbariya TV, a joint fund was established with over $160 million to further support mutual investment activities.

The agreements encompass technology transfer, such as the one with the Saudi National Automobiles Manufacturing Company. Additionally, the CEO of SNAM, Fahd S. Al-Dohish mentioned that the first production of two car models, the sport utility vehicles and pickups, is set to begin shortly, as reported by El-Ekhbariya TV.

In the realm of electric vehicles, Saudi Arabia has made significant strides in recent times, with the introduction of luxury brands and electric cars. 

Additionally, emerging Saudi companies are eager to enter and sign agreements with their Korean counterparts to establish factories, transfer technology, and employ a workforce skilled in electric vehicle technology. 

It is worth mentioning that earlier in September, Lucid Group, backed by the Public Investment Fund, opened its first international manufacturing facility in Saudi Arabia’s King Abdullah Economic City.

As Lucid’s second Advanced Manufacturing Plant, AMP-2, and first international plant, the facility will produce Lucid’s groundbreaking electric vehicles for Saudi Arabia and export to other markets. 

Through the development of electric transportation, Lucid will support the Saudi Green Initiative’s objective to ensure that 30 percent of new car sales in the Kingdom are electric by 2030.

Furthermore, the Saudi Contractors Authority on Sunday signed a MoU with the Korean International Contractors Association, according to the Saudi Press Agency.

The Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, and the Korean Minister of Land, Infrastructure and Transport, Won Hee-ryong, signed the MoU.

The MoU aims to enhance cooperation and exchange of expertise between the Saudi Contractors Authority and the International Contractors Association of Korea in the construction sector.

The deal also seeks to establish the foundations and standards for the development of the construction sector in both countries, as well as to improve the skills of the workforce in the industry. 

This agreement is expected to advance technology and innovation in the construction sector and facilitate collaboration and knowledge exchange between Saudi and Korean companies in the construction industry.

It is worth noting that the Saudi Contractors Authority’s objectives include regulating and developing the construction industry, building distinctive production competencies, promoting innovation, and enhancing communication among all stakeholders in the sector.

It also works to create a safe environment that serves project owners and industry stakeholders, including contractors and interested parties.