Saudi Arabia’s investment ministry has signed a $5.6 billion deal with Chinese electric car maker Human Horizons. The goal is to collaborate in the development, production and sale of vehicles. This was announced by the Saudi state news agency.
This deal alone represents more than half of the more than $10 billion in investments signed during the first day of the Arab-China trade conference underway in Riyadh.
Investment sectors range from technology to renewable energy, agriculture to real estate, metals to tourism and healthcare.
While the relationship between Saudi Arabia, the world‘s leading oil exporter, and China remains anchored in energy ties, there is a push to increase investment in non-oil sectors, as a pillar of the diversification of the kingdom.
An important part of the Saudi plan is the development of a domestic manufacturing industry of electric vehicles (EVs). Human Horizons produces electric vehicles under the HiPhi brand in China.