China bags major EV contract worth $5.6 billion as Saudi Arabia looks to adopt EVs

The Ministry of Investment in Saudi Arabia has recently entered into a significant partnership with Human Horizons, a prominent Chinese electric car manufacturer, through a $5.6 billion agreement.The collaboration aims to encompass various aspects such as the development, production, and distribution of vehicles.According to a statement released by the Saudi state news agency, this deal accounts for more than half of the total investments, surpassing $10 billion, that were secured during the Arab-China business conference held in Riyadh on Sunday.These investments span a wide range of sectors, including technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare, among others.Although the relationship between Saudi Arabia, known as the world's primary oil exporter, and China has traditionally been centred around energy ties, there is now a concerted effort to increase investments in non-oil industries as part of the kingdom's diversification agenda.One crucial aspect of Saudi Arabia's plan is to foster the growth of a domestic electric vehicle (EV) manufacturing industry. Human Horizons, well-known for producing electric vehicles under the HiPhi brand in China, plays a vital role in this endeavour.The Saudi statement further highlighted that Chinese foreign direct investment in Arab markets reached a significant milestone of $23 billion in 2021, with $3.5 billion specifically invested in Saudi Arabia.In line with its expansion strategy, Human Horizons announced in March that it intends to introduce its high-end HiPhi brand to certain European markets this year, aiming to extend its presence beyond China.Chinese Foreign Direct Investment (FDI) into Arab markets stood at $23 billion in 2021, of which $3.5 billion in Saudi Arabia, the Saudi statement said.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.