Saudi Arabia's first car manufacturer

King Saud University has just signed an agreement for the creation of Saudi Arabia’s first car manufacturer, and according to official data the university has committed to the South Korean engineering firm Digm Automotive Technology (a company with permanent alliances with Ssangyong Motor and GM Daewoo) to develop a prototype that must be presented within two years at the latest.

This pre-production model is expected to attract interest from the countries of the Persian Gulf and North Africa, although its price (7,200 euros at current exchange rates) could also prove attractive to other nations. And as part of the plans, it is indicated that the facilities could also manufacture car parts.

The Saudi state news agency reported that the company will be capitalised at an approximate equivalent of 376 million euros; 15% of the investment will be provided by the university, 30% by Digm Automotive, and the rest will be financed by shares sold to investors.

As an extra note, the university built the “Gazal-1“, the first domestic concept car from Saudi Arabia, which was presented at the 2010 Riyadh Motor Show.

Via | Inside Line