Saudi Arabia, Human Horizons sign $5.6 billion worth of agreement to build automotive joint venture

Beijing (Gasgoo)- Saudi Arabia and Chinese electric vehicle manufacturer Human Horizons have entered into a significant partnership, with the Saudi Arabian government agreeing to invest $5.6 billion in the collaboration.

HiPhi vehicles; photo credit: Human Horizons

This agreement, announced during the Arab-China business conference in Riyadh, is part of Saudi Arabia's diversification strategy, aiming to boost investments in non-oil sectors.

The partnership between Saudi Arabia and Human Horizons will focus on the design, production, and marketing of automobiles. It is one of several agreements signed during the conference, totaling over $10 billion in investments across various industries, including technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare.

Human Horizons, known for its luxury EV brand, HiPhi, currently manufactures electric cars in China. The Saudi government aims to develop the domestic electric vehicle manufacturing sector, making this partnership a strategic move. In 2021, Chinese direct investments in Arab markets amounted to $23 billion, of which $3.5 billion was invested in Saudi Arabia alone.

Additionally, as part of its international expansion plans, Human Horizons announced in March its intention to introduce the premium HiPhi brand to select European regions this year.