Saudi Arabia's state news agency announced in a statement that the Saudi Arabian Investment Ministry has signed a $5.6 billion agreement with Chinese electric vehicle manufacturer Human Horizons to collaborate on the development, manufacturing, and sales of automobiles.
On the first day of the Saudi-China Business Forum held in Riyadh on June 11th, over $10 billion worth of investment agreements were signed, covering sectors such as technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare. The agreement between Saudi Arabia and Human Horizons accounted for half of the total investment amount.
As the world's largest oil exporter, Saudi Arabia's cooperation with China has primarily revolved around energy. However, as part of Saudi Arabia's diversification agenda, the country has been striving to increase investments in non-oil sectors. One aspect of Saudi Arabia's plans is to develop the domestic electric vehicle manufacturing industry. In October last year, Saudi Arabia launched its own domestic electric vehicle brand, Ceer, with plans to mass-produce electric SUVs and sedans through a factory currently under construction starting from 2025.
According to the Saudi Arabian statement, China's direct investment in the Arab region in 2021 amounted to $23 billion, with $2.3 billion directly invested in Saudi Arabia.
Human Horizons, founded in 2017, designed and produced the luxury electric vehicle series called HiPhi, which was unveiled in 2019. In 2020, Human Horizons showcased 5G-enabled autonomous valet parking technology on the HiPhi X SUV. In March this year, Human Horizons announced plans to launch its HiPhi brand in some European markets, seeking overseas expansion, and the agreement with Saudi Arabia marks a significant milestone in its international journey.
