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PIF, Hyundai Motor Sign Deal to Establish Automotive Manufacturing Plant in Saudi Arabia 

PIF and Hyundai announce the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. (SPA)
PIF and Hyundai announce the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. (SPA)
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PIF, Hyundai Motor Sign Deal to Establish Automotive Manufacturing Plant in Saudi Arabia 

PIF and Hyundai announce the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. (SPA)
PIF and Hyundai announce the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. (SPA)

The Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) announced the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia, reported the Saudi Press Agency on Sunday.

PIF will hold a 70% stake in the new joint venture with Hyundai holding the remaining 30%. Hyundai will also act as a strategic technology partner to support the development of the new manufacturing plant, by providing technical and commercial assistance. The total investment for the project is estimated to exceed $500 million.

The joint venture announced at the Saudi-Korean Business Forum, aims to manufacture 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicles (EV). The plant groundbreaking is planned for 2024, and production is expected to begin in 2026.

The new manufacturing plant will create thousands of jobs and allow for knowledge and expertise transfer. The localization of Hyundai's vehicles will accelerate the development of Saudi Arabia's automotive and mobility ecosystem and attract further investments to the sector and the wider economy.

The partnership is PIF's latest initiative to elevate Saudi Arabia as a global automotive player, drive transformation in the sector, and boost manufacturing capabilities, infrastructure and supply chains in Saudi Arabia and beyond.

Among the major investments in the sector, PIF recently announced the launch of Tasaru, the National Automotive and Mobility Investment Company, which is dedicated to localizing automotive supply chains and manufacturing capabilities.

In addition, PIF and Saudi Electricity Company announced the Electric Vehicle Infrastructure Company, with plans to install over 5,000 electric car fast chargers across Saudi Arabia by 2030.

As the third largest automaker worldwide in terms of sales volume, Hyundai Motor Group brings invaluable technical capabilities and expertise to design, develop, and operate the vehicle manufacturing plant.

The joint venture also underscores PIF's efforts to create national and regional champions, building local capabilities, attracting cutting-edge technology, and creating highly skilled jobs in Saudi Arabia's automotive and mobility sectors. PIF's investments are also localizing automotive component manufacturing in Saudi Arabia, further strengthening the automotive supply chain.

Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said: "Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia's automotive ecosystem – one of our 13 priority sectors.”

“Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia's automotive and mobility value chain."

President and CEO of Hyundai Motor Company Jaehoon Chang said: "We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress."

The completion of the joint venture agreement is subject to obtaining customary approvals from the relevant authorities and satisfaction of conditions.

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flynas Announces Record-Breaking First-Half 2024 Results with 47% Passenger Growth

flynas welcomed more than 7 million passengers on board its flights in the first half of 2024. (SPA)
flynas welcomed more than 7 million passengers on board its flights in the first half of 2024. (SPA)
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flynas Announces Record-Breaking First-Half 2024 Results with 47% Passenger Growth

flynas welcomed more than 7 million passengers on board its flights in the first half of 2024. (SPA)
flynas welcomed more than 7 million passengers on board its flights in the first half of 2024. (SPA)

Saudi Arabia’s flynas, the leading low-cost airline in the world and the best LCC in the Middle East, welcomed more than 7 million passengers on board its flights in the first half of 2024.

This marks a 47% growth and 37% increase in seat capacity for domestic and international flights during the first half of 2024, compared with the same period of 2023, days after announcing the landmark purchase of 160 Airbus Aircraft, said flynas in a statement.

Bander Almohanna, CEO and Managing Director of flynas, commented: “Our record performance during the first half of 2024 is driven by our strategic growth plans as we continue to upgrade our fleet, increase capacity, and expand our global network.”

“The strategy, ‘We Connect the World to the Kingdom’, is aligned with the objectives of the National Civil Aviation Strategy to enable national air carriers to connect the Kingdom with 250 International destinations, accommodate 330 million passengers, and to host 100 million tourists annually by 2030,” he remarked.

“Our strategy will also play a key part in driving the objectives of the Pilgrims Experience Program (PEP) to facilitate access to the Two Holy Mosques, successfully transporting more than 100,000 pilgrims from 20 countries in the first half of the year.” Almohanna added

He stated that increasing seat capacity to domestic summer destinations confirms flynas’ commitment to promoting its role as a national carrier in supporting and empowering the tourism sector in the Kingdom and achieving its ambitious goals set by the Saudi Vision 2030 in cooperation and integration with the relevant authorities in the tourism and aviation sectors.

In terms of international flights, it increased its presence in key domestic, regional, and international markets, including partnerships with other airlines to expand its network.

“flynas has taken delivery of 6 A320neo aircraft during 2024, which reinforced our operations, created hundreds of new jobs for Saudis and opened applications for a new batch to the Future Pilots program, aiming to nationalize the co-pilot position in flynas by 100%,” Almohanna said.

“Additionally, our Future Engineers Program has accepted 22 Saudis into its second batch at the beginning of this year, contributing to nationalizing the roles in aircraft engineering and maintenance,” he added.

flynas operates more than 1,800 weekly flights to more than 70 domestic and international destinations and has flown more than 78 million passengers since its launch in 2007.

The expansion of the leading low-cost carrier’s fleet with 25 new A320neo aircraft over the last 18 months marks a significant milestone in the aviation industry. This strategic development increases the carrier’s fleet to 60 aircraft, showcasing a steady move towards achieving its ambitious, growth-oriented strategic goals.