The company announced this on its website, Ukrinform reported.

The new facility will be Hyundai’s first automobile factory in the Middle East.

PIF’s share will be 70% and Hyundai will own the remaining 30%. Hyundai will also act as a strategic technology partner providing technical and commercial support.

Hyundai, the world’s third largest automobile manufacturer in terms of sales volume, aims to provide modern technical solutions and experience for the design, development and operation of its automobile factory in Saudi Arabia.

The total amount of investment in the project is estimated to be more than 500 million dollars.

The joint venture plans to produce up to 50,000 vehicles per year, including internal combustion engine vehicles and electric vehicles.

Construction of the facility is planned to start next year, and assembly of cars is expected to begin within two years, that is, in 2026.

The partnership is PIF’s latest initiative to elevate Saudi Arabia as a global player in the automotive industry, the statement said. PIF’s main investments in this sector include the recent launch of the Tasaru National Investment Company, which plans to localize the supply chains and production facilities of the national automotive industry on the territory of the country.

As reported by Ukrinform, South Korean company Hyundai Motor Co. announced that it will invest 109.4 trillion won ($85.4 billion) by 2032 to secure its leading position in the global electric car market.