Saudi Arabia’s Ministry of Investment has recently announced a groundbreaking partnership with Human Horizons, a leading Chinese electric vehicle manufacturer. This partnership, valued at a remarkable $5.6 billion, aims to facilitate collaboration in various areas such as automobile design, production, and marketing. The news, conveyed through a statement from the Saudi state news agency, reflects the commitment of both nations to foster innovation and economic growth.
The announcement came on the opening day of an esteemed Arab-China business conference held in Riyadh. The event proved to be a significant platform for forging economic ties, with over $10 billion in investments being finalized on that very day. This agreement encompasses a diverse range of industries, including technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare. By diversifying their investment portfolio, Saudi Arabia and China are striving to reduce their reliance on oil and explore new avenues of economic prosperity.
While Saudi Arabia has traditionally been recognized as the world’s top oil exporter and has maintained a strong energy partnership with China, both countries are actively seeking to expand their investments in non-oil sectors. This strategic move aligns with Saudi Arabia’s broader diversification strategy, aimed at promoting sustainable economic development and reducing dependence on oil revenues. As part of this vision, the Saudi government has set its sights on bolstering the domestic electric vehicle (EV) manufacturing sector, which holds immense potential for growth.
Human Horizons, known for its HiPhi brand of electric cars manufactured in China, stands at the forefront of this partnership. The company’s expertise and experience in EV production make it an ideal collaborator for Saudi Arabia in realizing its ambitions in the automotive sector. The joint efforts between the Saudi Ministry of Investment and Human Horizons promise to yield remarkable outcomes in terms of innovation, job creation, and technological advancement within the kingdom.
The collaboration between Saudi Arabia and China extends beyond the automotive industry. According to the Saudi statement, Chinese direct investment in Arab markets reached an impressive $23 billion in 2021, with $3.5 billion of that being allocated to Saudi Arabia. These figures demonstrate the increasing significance of Chinese investment in the Arab region, reaffirming the mutually beneficial relationship between the two nations.
In a bid to expand its global presence, Human Horizons announced earlier this year its intention to introduce its premium HiPhi brand to select European regions. This strategic move reflects the company’s ambition to tap into new markets and establish itself as a leading player in the international EV industry. With the Saudi partnership now in place, Human Horizons is well-positioned to further its global expansion strategy and leverage the resources and expertise of both Saudi Arabia and China.
The $5.6 billion partnership between the Saudi Ministry of Investment and Human Horizons represents a significant milestone in the bilateral relationship between Saudi Arabia and China. By collaborating in areas such as automobile design, production, and marketing, both nations are poised to unlock tremendous potential in the automotive sector while simultaneously fostering economic diversification. This partnership not only signifies a shared commitment to innovation and growth but also underscores the importance of international collaboration in shaping the future of the automotive industry. With the combined strengths of Saudi Arabia’s economic vision and China’s technological prowess, this partnership holds great promise for the advancement of sustainable mobility and the continued prosperity of both nations.
