PARIS, France - Saudi Arabia’s Ministry of Investment has signed a $5.6 billion deal with Chinese electric car maker Human Horizons to collaborate on the development, manufacture and sale of vehicles, the Saudi news agency said in a statement.
The deal was part of more than $10 billion in investments signed on the first day of an Arab-China business conference in Riyadh on Sunday, covering sectors such as technology, renewable energy, agriculture, real estate, metals, tourism and healthcare.
The agreement reflects Saudi Arabia’s ambition to diversify its economy away from oil and develop a domestic electric vehicle (EV) industry as part of its Vision 2030 plan.
Human Horizons is a Shanghai-based company that produces electric vehicles under the HiPhi brand in China. It plans to launch its premium HiPhi brand in some European markets this year as it expands overseas.
Chinese foreign direct investment into Arab markets stood at $23 billion in 2021, of which $3.5 billion was in Saudi Arabia, the Saudi Statement said.
Saudi Arabia is China’s largest trading partner in the Middle East and a key supplier of crude oil. The two countries have also cooperated on infrastructure, technology and cultural projects.
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