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A $5.6 billion deal has been signed between Saudi Arabia's Ministry of Investment and Chinese electric car manufacturer Human Horizons in an effort to work jointly on the development, manufacture, and sale of the cars, as confirmed by the Saudi state news agency.

The deal is part of the $10 billion investments, accounting for more than half of it being signed during an Arab-China business conference in Riyadh on Sunday, which focused on the sectors of technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare. 

The kingdom aims to develop a domestic electric vehicle (EV) manufacturing industry, which may be one of the reasons behind their intended collaboration with Human Horizons, which makes electric vehicles under the HiPhi brand in China.

While the bilateral ties between the world's top oil exporter and China remain tight as a result of energy ties, boosting investments in sectors other than oil has been a recent objective of the kingdom's diversification plan.

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Speaking at the conference, Saudi Arabia's Investment Minister, Khalid Al-Falih, stated that while China looks to strengthen its trade ties with the Arab world, the Kingdom may serve as its gateway, especially with the revival of the Silk Route. 

It is worth noting that Saudi Arabia accounted for 25% of the $432 billion in commerce between China and Arab nations last year.

The Minister added in a statement that the plan to revive the Silk Route is consistent with Saudi Arabia's future vision, which aims to diversify its economy and employ contemporary technologies to improve the abilities of its young.

According to the Saudi statement, Chinese foreign direct investment into Arab markets reached $23 billion in 2021 - $3.5 billion was put in Saudi Arabia.

Back in March, Human Horizons confirmed that it plans to launch its premium HiPhi brand in various European markets this year as part of its aim to expand overseas.