Saudi Arabia signs $ 500 m deal with Korean firm to make cars

Riyadh: A Saudi university says it has signed a deal with a South Korean firm to produce passenger cars.

The South Korean concern is investing $ 500 million in the project.

Abdullah al-Othman, President of King Saud University, says the first car, a five-passenger model, is expected to roll out within two years. The kingdom plans to export it to the Gulf nations and north Africa.

He said in a statement Sunday that the Wadi al-Riyadh Technology Firm, affiliated with the university, will have a 10 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.