Hyundai Motor Company has signed a MoU with the Saudi Ministry of Industry and Mineral Resources to boost co-operation in vehicle manufacturing in the region.

The MoU stipulates planning for building a Saudi-based assembly plant with the CKD system for electric cars and internal combustion engines cars, after Hyundai showed high interest and plans to explore joint investment opportunities with the kingdom to achieve entrepreneurship in businesses and projects that guarantee environment safety and sustainability, reported SPA.

This comes in line with Saudi Arabia's national strategic goals for industry in developing local manufacturing capabilities and as per the targets of the Saudi Vision 2030 that seeks to diversify the economic base in the kingdom.

The agreement was signed in the presence of Minister of Industry and Mineral Resources Bandar Al Khorayef, Minister of Economy and Planning Faisal Al Ibrahim, Deputy Minister of Industry and Mineral Resources Engineer Osamah Al Zamel, Saudi Industrial Development Fund CEO Dr Ibrahim Al Mojel and Hyundai Motor Executive Vice President and Head of Global Operations Division Seon Seob Kim.

The Saudi National Industry Strategy seeks to localize the vehicle sector and increase investment opportunities in the sector, where light cars sales rates are expected to increase in the kingdom by 2.2% in the upcoming decade, stated the report.

The kingdom is interested in developing this sector that will lead to attracting and developing the workforce with focus on products with high added value, it added.

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