Al Muwakaba for Industrial Development & Overseas Commerce, the diversified holding company known as Midroc, will invest $275 million in a new Saudi Arabian auto plant, the Saudi Press Agency reported.
Midroc will get a 55 percent stake in the $500 million venture, the news service said. Riyadh Techno Valley, the investment arm of King Saud University, has a 15 percent stake and South Korea’s Digm Automotive Technology Inc. a 30 percent stake, SPA said, citing Rector Abdullah al Othman.
One third of the plant’s production capacity will be dedicated to manufacturing a five-seat car retailing at around 35,000 riyals ($9,300), while the remainder will focus on auto parts, the news service said. Midroc is owned by Saudi billionaire Mohammed Hussein al-Amoudi.