Saudi Arabia signs $5.6 bln deal with Chinese Electric Vehicles company

The Saudi Ministry of Investment signed an agreement worth $5.6 billion (21 billion riyals) with the Chinese company Human Horizons, which specializes in developing autonomous driving technologies and manufacturing electric vehicles, to establish a joint venture for research, development, manufacturing and sales of vehicles.

More than 30 deals were penned across multiple sectors, including technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare.

While relations between the Kingdom, the world's largest oil exporter, and China are still focused on the energy sector, there is a push to boost investments in non-oil sectors as part of a diversification plan in the Kingdom.

The Saudi plan includes developing the electric vehicle industry locally. China's Human Horizons manufactures electric vehicles under the Hi-Fi brand in China.

The Saudi statement said that China's foreign direct investment in the markets of the Arab world amounted to $23 billion in 2021, of which $3.5 billion is in the Kingdom.