The Saudi Arabian Ministry of Investment announced a $5.6 billion partnership with H, in a move to advance the development, manufacturing, and sales of electric vehicles in the Kingdom. The significant deal was unveiled at the 10th Arab-China Business Conference in Riyadh on Sunday.
In a colossal stride towards diversification, the agreement forms over half of the $10 billion plus investments pledged on the first day of the business conference. The range of investment sectors included technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare.
The venture signals a key shift in the relations between Saudi Arabia, the world’s leading oil exporter, and China. While energy links have traditionally grounded the partnership between the two nations, there is a renewed drive to enhance investments in non-oil sectors. This is in line with Saudi Arabia’s broader agenda to diversify its economy and reduce its reliance on oil revenue.
Central to Saudi Arabia’s diversification plans is the establishment of a domestic electric vehicle manufacturing industry. Human Horizons, known for manufacturing electric vehicles under the HiPhi brand in China, aligns closely with this objective.
Chinese foreign direct investment in Arab markets was reported to be $23 billion in 2021, with Saudi Arabia capturing $3.5 billion of that amount, as stated by the Saudi Ministry.
Human Horizons had previously announced in March its plans to introduce its premium HiPhi brand to select European markets this year, reflecting its aim to broaden its global footprint.
This new partnership marks a significant milestone in the global shift towards sustainable transport solutions and underlines Saudi Arabia’s commitment to transforming its economy in an era of environmental awareness and green technologies.
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