Saudi Arabia, which wants to lead the Arab world in developing commercial ties with Beijing, has agreed to pay a Chinese business $5.6 billion to produce electric automobiles.
More than half of the $10 billion in investments were agreed to on Sunday with the electric and self-driving car manufacturer Human Horizons regarding the development, production, and sale of vehicles. The conference was taking place in the Saudi capital of Riyadh.
According to the Saudi Press Agency, the 10th Arab-China Business Conference, which is being hosted under the patronage of Crown Prince Mohammed bin Salman, intends to strengthen a “strategic” collaboration centered on the Belt and Road Initiative.
The event, which was organized in conjunction with the Arab League and the China Council for the Promotion of International Trade, reportedly attracted more than 3,500 government representatives, investors, business representatives, and specialists from 23 different nations.
As the world’s top exporter of oil, Saudi Arabia’s relations with China still largely revolve around energy, but as part of its Vision 2030 plan to diversify the economy, Riyadh is planning to boost investments in non-oil sectors, including in electric cars.
Human Horizons manufactures luxury EVs under the HiPhi brand in China but is looking to expand and make headway in Western markets as well. The company announced in March that it will enter European markets this year, with an eye on Western Europe or Scandinavia.
