Saudi Arabia sets up new automobile company
King Saud University in Riyadh has signed a joint cooperation agreement with a Korean firm to set up a new company in the automotive industry with a capital of US$ 500 million. Abdullah al-Othman president of King Saud University said the first car, a five-passenger model, is expected to roll out within two years. The kingdom plans to export it to the Gulf countries and north Africa.
According to him, the Wadi al-Riyadh Technology Firm, affiliated with the university, will have a 10 to 15 per cent share, while the South Korean company will put some 30 per cent. The rest will be offered to investors. Earlier this month, King Abdul Aziz City for Science and Technology also unveiled plans for launching a domestically designed and manufactured automobile.