The ministry stated that the signing of the memorandum comes within the framework of working to achieve the objectives of the national strategy for industry in developing local manufacturing capabilities.
The memorandum of understanding stipulates planning to build a complete assembly plant with the “CDK” system for electric cars and internal combustion engine cars, to be located in Saudi Arabia.
The signing of the agreement came after Hyundai showed great interest and plans to explore joint investment opportunities with the Kingdom to work towards achieving leadership in business and projects that ensure safety and environmental sustainability, according to the official news agency.
It is noteworthy that the national strategy for the industry aims to localize the automotive sector and increase investment opportunities in it, and it is expected that sales of light cars in the Kingdom will grow by 2.2 percent over the next decade, and that the localization of the sector will bring great benefits to the Kingdom, as it represents an attractive regional opportunity given the size of the light vehicle market. And expectations indicate that its growth will double at the global rate over the next ten years, according to the ministry.
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