JEDDAH: Al Muwakaba for Industrial Development and Overseas Commerce (Midroc) said Wednesday it will invest $275 million in a new planned plant to manufacture passenger cars in Saudi Arabia. The firm will get a 55 percent stake in the $500 million firm planned by King Saud University's investment arm Wadi Al-Riyadh Technology Firm, and South Korea's Digm Automotive, it said. Wadi Al-Riyadh will have a 10 percent to 15 percent stake in the new firm. The plant will produce a five-passenger model within two years, the university said. Digm will hold 30 percent of the new company. The Kingdom plans to sells the cars in the Gulf and North Africa. The company will produce high quality automobiles with five-passenger seats, with a price range from $9 to $12 thousands (SR35 to SR45 thousands), where the plan is to build 20 thousand units a year. Dr. Abdullah Al-Othman, President of King Saud University, said the economical car suitable for the local market will be available for sale within two years. The project is meant to “diversify the revenues that depend on oil and create job opportunities for youth”.
