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.
Saudi signs deal with Chinese company: On Sunday, the electric and self-driving car manufacturer Human Horizons agreed to more than half of the $10 billion in investments for the development, production, and sale of vehicles. The conference was taking place in the Saudi capital of Riyadh.
The Saudi Press Agency reports that Crown Prince Mohammed bin Salman is hosting the 10th Arab-China Business Conference to strengthen a “strategic” collaboration focused on the Belt and Road Initiative.
The Arab League and the China Council for the Promotion of International Trade planned the event, which reportedly drew over 3,500 government officials, investors, business representatives, and experts from 23 nations.
Saudi Arabia is the top oil exporter in the world; thus, its relations with China still mostly center on energy. However, as part of its Vision 2030 goal to diversify the economy, Riyadh intends to increase investments in non-oil areas, such as electric vehicles.
Under the HiPhi brand, Human Horizons produces high-end EVs in China, but it also hopes to grow and gain ground in the West. The business declared in March that it would join the European market this year, targeting Scandinavia or Western Europe.
In October, Saudi Arabia introduced Ceer, a local brand of electric vehicles that hopes to produce electric SUVs and sedans through a manufacturing facility currently under development, starting in 2025.
Along with the $5.6 billion electric vehicle pact, Saudi officials on Sunday announced deals worth billions of dollars in various industries, including renewable energy, agriculture, real estate, metals, tourism, and healthcare.
Saudi Arabia and China Strengthen Economic and Diplomatic Ties at Conference
According to a Saudi statement, these included a $533 million arrangement for constructing an iron facility in the country and a $500 million collaboration agreement on copper mining.
More announcements are to be expected, according to kingdom authorities. Energy Minister Abdulaziz bin Salman Al Saud said more energy deals would soon be announced. He also dismissed criticism from the West of the strengthening connections between Saudi Arabia and China, saying the kingdom would put its commercial interests first.
As the conference’s keynote speaker, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud praised the strengthening ties between China and the Arab world.
Arab media quoted him as stating, “Our meeting today provides an opportunity to work and strengthen the historical Arab-Chinese friendship and build a common future that will benefit both parties.”
According to Saudi officials who spoke at the conference, the overall value of trade between China and the Arab world reached a record $430 billion in 2022, with Saudi Arabia accounting for nearly 25% of that total with a record-breaking $106 billion in bilateral trade that increased by 30% from the previous year.
The conference occurs soon after President Xi Jinping’s December trip to Riyadh. In addition to signing a comprehensive strategic partnership agreement with Riyadh, Obama convened a joint conference with Arab leaders.
With the help of Iran and Saudi Arabia reaching a historic agreement in March that restored diplomatic ties between the two regional foes after a seven-year break, China has also been stepping up its diplomatic presence in the area.