Saudi to build cars for Gulf, North Africa image

Saudi Arabia plans to start up its first car manufacturing company with a capital of $500 million and expects a prototype within two years, state media reported today.

According to Al-Othman, President of King Saud University in Riyadh, a deal with the South Korean Digm Automotive Technology Inc was signed, where the Korean company will own 30% of the shares, while the Riyadh Techno-Valley will hold 10 to 15% of the shares, and the rest will be open to investors.

The outfit’s first vehicle will reportedly be “an economic car suitable for local use,” as opposed to the Mercedes-Benz Geländewagen-based SUV concept pictured above.

“Our aim is to market a low-cost car of high quality priced at between SR35,000 and SR45,000, [US$9,300 to US$12,000]” Al-Othman told reporters.

[Source: Reuters]