In a significant move to enhance economic relations with China, Saudi Arabia has entered into a notable $5.6 billion agreement with Chinese electric vehicle manufacturer Human Horizons to facilitate the production of electric vehicles. The memorandum of understanding, signed on Sunday, encompasses various aspects such as vehicle development, manufacturing, and sales.

The deal represents a substantial portion of the $10 billion worth of investments finalized on the opening day of a prominent business conference hosted in Riyadh, the capital of Saudi Arabia. This strategic move demonstrates Saudi Arabia's ambition to lead the Arab world in expanding its economic ties with Beijing.

The 10th Arab-China Business Conference, supported by Crown Prince Mohammed bin Salman, aims to strengthen the "strategic" partnership surrounding the Belt and Road Initiative. Over 3,500 participants from 23 countries, including officials, investors, and experts, attended the event organized by the Arab League and China Council for the Promotion of International Trade.

“Our meeting today is an opportunity to work and strengthen the historical Arab-Chinese friendship and to work on building a common future” that will benefit both sides, he was quoted as saying by Arab media.

According to Saudi officials at the conference, the trade between China and the Arab world surged to a record-breaking $430 billion in 2022. Notably, Saudi Arabia accounted for approximately 25 percent of this total, with a substantial bilateral trade volume of $106 billion. This figure represents a remarkable 30 percent increase compared to the previous year.

The conference took place shortly after Chinese President Xi Jinping's visit to Riyadh in December, where he engaged in a joint meeting with Arab leaders. During the visit, a comprehensive strategic partnership agreement was signed between China and Riyadh, further solidifying their relationship.

China has been actively expanding its diplomatic presence in the region. In March, it brokered a significant agreement between Iran and Saudi Arabia, resulting in the re-establishment of diplomatic relations between the two regional rivals after a seven-year rift. This move has contributed to China's growing influence in the Middle East.

Image source: Al Jazeera