Saudi Arabia’s Ministry of Investment has signed a $5.6 billion deal with Chinese electric car maker Human Horizons. The two will collaborate on the development, manufacture, and sale of vehicles. This is according to a statement by the Saudi state news agency. The new agreement may also strengthen Saudi Arabia and Chinese relations as the middle eastern nation looks to join BRICS.
More than $10 billion in investments were signed on the first day of an Arab-China business conference in Riyadh on Sunday. These agreements span technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare. The newest agreement will account for all of these.
With Saudi Arabia’s interest in joining BRICS growing, the new agreement with China is a step in the right direction to further develop its relationship with the founding BRICS country. There has been a push to boost investments in non-oil sectors as part of the kingdom’s diversification agenda. Saudi Arabia is expected to be a new member of BRICS when BRICS+ is established.
Human Horizons manufactures electric vehicles under the HiPhi brand in China. Chinese foreign direct investment into Arab markets stood at $23 billion in 2021, of which $3.5 billion was in Saudi Arabia, the Saudi statement reads.