By Mark Kleis
Monday, Dec 27th, 2010 @ 4:09 pm
 
Auto manufacturing and the Middle East don't exactly have a storied history, which is fairly interesting given that a good share of the world's fuel used to power automobiles originates in the Middle East.

Saudi Arabia is looking to change that, but not with the Mercedes-Benz G-class-based Gazal 1 (pictured) that the world has already previewed. According to reports by Reuters and Arab News, Saudi Arabia's Riyadh-based King Saud University has inked a deal worth $500 million with a south Korean automaker, Digm Automotive Technologies.

Funding comes in the form of 15 percent being provided by the university, 30 percent by the Korean automaker and the remainder to be covered by investors.

Many expected that the production of the Gazal 1 would be the first out of Saudi Arabia, but instead it appears that this joint operation will be aimed at producing an inexpensive car around the $10,000 mark. The president of the university, Abdullah al-Othman, told Reuters that a prototype of the car intended for local consumption will be ready within a two-year time span.

Abdullah al-Othman did also say that he hopes to eventually export the car to other Gulf states, as well as to North African countries.


References
1.'Saudi plans $500 million...' view
2.'Kingdom to make cars...' view