RIYADH: A Human Horizon HiPhi electric SUV is displayed at the 20th Shanghai International Automobile Industry Exhibition on April 18, 2023.
Saudi Arabia’s Ministry of Investment has signed a $5.6 billion deal with Chinese electric car maker Human Horizons to cooperate in the development, production and sale of vehicles, Saudi state news agency said in a statement.
The deals account for more than half of the more than $10 billion in investments signed on the first day of the Arab-China business summit in Riyadh on Sunday in sectors spanning technology, renewable energy, agriculture, real estate, metals, tourism and healthcare. Among others.
While ties between the world’s top oil exporter Saudi Arabia and China are anchored by energy ties, there has been a push to increase investment in the non-oil sector as part of the kingdom’s diversification agenda.
Part of the Saudi plan is to build a domestic electric vehicle manufacturing industry. Human Horizons manufactures electric vehicles in China under the HiPhi brand.
According to the Saudi statement, Chinese foreign direct investment in the Arab market will be $23 billion in 2021, of which $3.5 billion is in Saudi Arabia.
Human Horizons said in March that it would launch its premium HiPhi brand in some European markets this year as it looks to expand overseas.
