The Saudi Arabia Ministry of Investment signed a $5.6 billion deal with Chinese electric automaker Human Horizons in order to collaborate on manufacturing and selling vehicles, according to CNBC.
This agreement accounts for over half of the more than $10 billion in investments that were signed on the first day of an Arab-China business conference in Riyadh this past Sunday across sectors spanning technology, renewable energy, agriculture, metals, real estate, etc.
The connection between Saudi Arabia and China has been largely driven by energy partnerships, but there has been a focus on diversifying alliances beyond that.
Saudi is especially interested in developing a domestic electric vehicle manufacturing sector. Human Horizons builds electric vehicles under the HiPhi brand in China.
According to the Saudi government, Chinese foreign direct investment into Arab markets was currently at $23 billion in 2021, of which $3.5 billion was in Saudi Arabia.
Earlier this year, Human Horizons said it would be launching its premium HiPhi brand in certain European markets this year.
