Saudi Arabia’s Ministry of Investment has inked a significant $5.6-billion deal with Chinese electric car manufacturer Human Horizons, as per a statement from the Saudi state news agency. The agreement, signed during an Arab-China business conference in Riyadh, entails collaboration in the development, manufacturing, and sale of vehicles. This deal alone represents over half of the total investments, surpassing $10 billion, signed on the conference’s first day across various sectors including technology, renewable energy, agriculture, real estate, metals, and tourism.
Although the relationship between Saudi Arabia, the world’s leading oil exporter, and China has been primarily centered around energy cooperation, efforts have been made to promote investments in non-oil industries to support the kingdom’s diversification agenda.
One aspect of Saudi Arabia’s diversification plan is to establish a domestic electric vehicle (EV) manufacturing sector. Human Horizons, renowned for producing electric vehicles under the HiPhi brand in China, will contribute to this objective.
According to the Saudi statement, Chinese foreign direct investment in Arab markets reached $23 billion in 2021, with $3.5 billion specifically invested in Saudi Arabia.
Human Horizons announced in March its intention to introduce the premium HiPhi brand to several European markets this year, reflecting its aspirations for overseas expansion. This collaboration with Saudi Arabia aligns with the company’s strategic goals and bolsters Saudi Arabia’s pursuit of economic diversification and sustainability.
