Hyundai Motor has commenced a partnership with Saudi Arabia's sovereign wealth fund (PIF) to establish a production base in the Middle East, with a groundbreaking ceremony held at the Hyundai Motor's Saudi Arabian Manufacturing Middle East (HMMME) site in King Salman Automobile Industrial Complex, Saudi Arabia. HMMME, a joint venture with 70% stake from PIF, will operate as a CKD factory assembling semi-assembled parts to contribute to the expansion of production in the Middle East market. The plant aims to begin operations in the fourth quarter of 2026, targeting an annual production volume of around 50,000 units, including both electric and internal combustion vehicles. The King Salman Automobile Industrial Complex, where the plant will be situated, is strategically located in a desert environment, signifying Hyundai's strategic move to enhance its influence in Saudi Arabia, the largest automobile market in the region. The decision to establish the plant in the desert aligns with Saudi Arabia's Vision 2030 initiative, emphasizing diversification from an oil-centric industrial structure to manufacturing and hydrogen energy. During the groundbreaking ceremony, PIF Vice President Yazid Alhuminead highlighted the significance of HMMME for the development of Saudi Arabia's automobile industry. The collaboration between Hyundai Motor and PIF underscores a commitment to accelerate the growth of the Saudi mobility ecosystem. Hyundai Motor Group's Vice Chairman Jang Jae-hoon emphasized the importance of the production base as a strategic move in the Saudi market, affirming the company's interest in both domestic and global investments. Furthermore, in response to queries about domestic investment, Vice Chairman Jang clarified Hyundai's commitment to investing in Korea, emphasizing plans to allocate significant funds to sectors like AI, robotics, energy, and mobility. The company is actively exploring opportunities to collaborate with the Saudi government to develop a hydrogen ecosystem, reflecting mutual interests in energy solutions and sustainable mobility.