Ssangyong Motor Co., South Korean unit of India’s Mahindra & Mahindra Ltd., is expanding its sales into the Middle East by granting the Saudi National Automoibile Manufacturing Co. (SNAM) a license to assemble and ship its vehicles in Saudi Arabia starting in 2020, according to Maeil Business News Korea.

Ssangyong Motor signed a product licensing agreement with SNAM to allow the Saudi firm to manufacture its new premium pickup truck codenamed Q200 in the country starting in 2020. SNAM plans to boost the annual capacity to 25,000 units later. Ssangyong Motor expects the latest deal would benefit its Korean suppliers as the deal would involve an auto cluster for tier 1 auto part suppliers in Jubail, an industrial city in Saudi Arabia, according to Maeil Business News Korea.

SNAM, an automotive affiliate of Saudi Arabia’s Safari Group, was founded with a long-term plan to foster the country’s automotive industry under the tagline of “Saudi Vision 2030.” SNAM already secured land totaling 1 million square meters in Jubail to build an auto manufacturing plant and an additional site of the same size for local suppliers.