Saudi Arabia’s Ministry of Investment and Chinese electric car manufacturer, Human Horizons, have entered into a momentous $5.6 billion partnership agreement, aiming to collaborate on various aspects such as vehicle development, manufacturing, and sales. This significant deal was announced by the Saudi state news agency, highlighting the growing synergy between the two countries.
The agreement represents a substantial portion of the total investments of over $10 billion that were inked on the inaugural day of the Arab-China business conference in Riyadh. The sectors covered in these investments range from technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare, among others.
Saudi Arabia, recognized as the world’s leading oil exporter, has traditionally maintained a strong bilateral relationship with China, primarily based on energy cooperation. However, the recent focus has been on diversifying investments into non-oil sectors as part of the kingdom’s ambitious economic diversification agenda.
One of the key objectives of Saudi Arabia’s plan is to foster the growth of a domestic electric vehicle (EV) manufacturing industry. Human Horizons, already renowned for producing electric vehicles under the HiPhi brand in China, will play a crucial role in this endeavor.
The Saudi statement further disclosed that in 2021, Chinese foreign direct investment in Arab markets reached a staggering $23 billion, out of which $3.5 billion was directed towards Saudi Arabia. This illustrates the substantial commitment of Chinese investors towards the region.
In a strategic move to expand globally, Human Horizons announced in March its intention to introduce its premium HiPhi brand in several European markets this year. This demonstrates the company’s ambition to extend its reach beyond China and capitalize on the growing demand for electric vehicles in international markets.
