According to a statement from the Saudi state news agency, the Saudi Arabian government has agreed to a $5.6 billion partnership with Chinese electric vehicle manufacturer Human Horizons to work together on the design, production, and marketing of automobiles.
On the first day of an Arab-China business conference on Sunday in Riyadh, more than $10 billion in investments were inked, including this agreement, which covers a variety of industries including technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare.
Although the top oil exporter in the world and China continue to have strong energy links, there has been a push to increase investments in non-oil sectors as part of the kingdom’s diversification strategy.
The Saudi government has plans to grow the domestic EV manufacturing sector. Under the HiPhi brand, Human Horizons produces electric cars in China.
According to a Saudi statement, Chinese direct investment in Arab markets totaled $23 billion in 2021, of which $3.5 billion was invested in Saudi Arabia.
As part of its international expansion strategy, Human Horizons announced in March that it would introduce its premium HiPhi brand in a few European regions this year.
The following B2B agreements were made in connection with the event:
Additionally, a US$533 million agreement was reached between the AMR ALuwlaa Company and Zhonghuan International Group (Hong Kong) Limited to build a facility that will process iron ore and create iron pellets for smelting facilities in Saudi Arabia.
A $500 million collaboration deal between China National Geological & Mining Corp. and the ASK Group of Saudi Arabia for the planning, funding, building, and management of an Arabian Shield copper mining project
Mabani Al-Safwah Ltd., China Gezhouba Group International Engineering Co., Ltd., and Top International Engineering Corporation Arabia Ltd. have agreed to a framework contract worth US$266 million for the development of modern buildings in the Kingdom.
Agreements between governments and businesses (G2B) included:
A deal for US$5.6 billion was made between MISA and Human Horizons, a Chinese company that develops autonomous driving technology and makes electric vehicles under the HiPhi brand. The goal of the agreement is to create a joint venture for the study, design, production, and marketing of automobiles.
MISA and Android app developer Hibobi Technology Limited in Hong Kong have a $266 million partnership to create travel and other apps.
MISA enabled a US$250 million agreement between Chinese state-owned rolling stock producer CRRC and Saudi Arabia-based SABATCO, the Saudi Arabian railway firm, to produce rail wagons and wheels.
A US$150 million agreement was reached between MISA, the Ministry of Industry and Mineral Resources (MIM), and the Chinese industrial firm Sunda to produce caustic soda, chlorine, and its derivatives, chlorinated paraffin, calcium chloride, polyvinyl chloride (PVC), and related conversion products in the Kingdom.
