Key Developments

In March 2024, Kumho Tire, a leading South Korea-based tire manufacturer, entered into a technology licensing agreement with Blatco, a prominent Saudi Arabia-based tire company. Under the agreement, Kumho Tire will provide Blatco with technology support for producing passenger car tires for the Saudi Arabian and Middle Eastern markets over the next 20 years. This agreement builds on a memorandum of understanding signed in 2022 to create a joint tire venture and aligns with the Saudi government's Vision 2030 policy.
In October 2023, The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, and Pirelli Tyre S.P.A., a renowned global tire manufacturer, announced a joint venture to establish a tire factory in Saudi Arabia. PIF will hold a 75% stake in the new venture, while Pirelli will own 25% and provide essential technological and commercial support. Scheduled to commence operations in 2026, the factory will produce high-quality tires under the Pirelli brand and introduce a new local brand targeting the domestic and regional markets.
In July 2023, Reviva, a global leader in environmental management services, partnered with local firm Hama Holding and waste tire recycling specialist Enrestec to advance regional tire waste management. Reviva, affiliated with Saudi investment recycling company PIF (The Public Investment Fund), aims to enhance the recycling of waste tires through this collaboration.
In February 2023, Hankook Tires, a leading global tire manufacturer, made its debut as the exclusive sponsor of Formula E in Diriyah, following its appointment as the Exclusive Technical Partner and Official Tire Supplier for the electric racing series starting in 2023. This partnership, aligned with the surge in global interest for electric vehicles, saw Hankook Tires introduce its new iON Race Tires, crafted from environmentally friendly materials and achieving over a 15% reduction in carbon dioxide emissions compared to conventional tires.