The Saudi ministry of investment has agreed to a $5.6 billion partnership with Chinese electric vehicle manufacturer Human Horizons to work together on the design, production, and marketing of automobiles, according to sources.
On the first day of an Arab-China business conference on Sunday in Riyadh, more than $10 billion in investments were inked, including this agreement, which covers a variety of industries including technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare.
Although the top oil exporter in the world and China continue to have strong energy links, there has been a push to increase investments in non-oil sectors as part of the kingdom's diversification strategy.
The Saudi government has plans to grow the domestic EV manufacturing sector. Under the HiPhi brand, Human Horizons produces electric cars in China.
As per Saudi, Chinese direct investment into Arab markets totaled $23 billion in 2021, of which $3.5 billion was invested in Saudi Arabia.
As part of its international expansion strategy, Human Horizons announced in March that it would introduce its premium HiPhi brand in a few European regions this year.
The Shanghai-based Chinese company Human Horizons Technology develops electric vehicles under the HiPhi name and is working to advance driverless technology. It operates its manufacturing and assembly smart plant in Yancheng, Jiangsu Province, and its components boutique prototype factory in Jinqiao, Shanghai.