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FINANCIAL NEWS
Saudi to build $500m car manufacturing unit
27 Dec 2010
(MENAFN) Abdullah Al Othman, President at Riyadh-based King Saud University, has signed a Memorandum of Understanding (MoU) with a South Korean car manufacturing firm to set up a new $500 million car manufacturing unit within the Kingdom, Reuters.
According to Al Othman, 15 percent of the financing for the car manufacturing company which is expected to produce a prototype within two years will be provided by the university’s investment arm, Wadi Al Riyadh Technology, while 30 percent will be covered by the Korean firm, whereas the rest will be offered to investors.
Saudi Arabia plans to export its first car to other Gulf states as well as North African countries. The venture comes in line with the Kingdom’s plans to steer away from its oil dependency and diversify its revenue to other sources, said Al Othman.
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