Neom, a combination of “neo”, the Greek word for new, and the letter m, which represents “mustaqbal” or Arabic for future, will make the investment through the Neom Investment Fund (NIF).
The two sides will also set up a joint venture to develop, and manufacture self-driving services, autonomous vehicles, and related infrastructure in Neom and key markets in Middle East and North Africa (MENA).
Majid Mufti, CEO of NIF, said the investment aligned with Neom’s ambitions to achieve autonomous transport solutions for the region.
China grants first ‘robotaxi’ licences to two operators in Beijing
China grants first ‘robotaxi’ licences to two operators in Beijing
“Pony.ai’s autonomous driving technology is already available today and we are excited to be able to utilise it in Neom in the near future,” he added in the statement.
Corporate ties between the two countries are growing. Earlier this month, BeyonCa, backed by French firm Renault and China’s Dongfeng Motor, said it was working with Al Faisaliah Group to explore opportunities for EV development, encompassing research and development, manufacturing, trade, retail, charging, insurance, ecological services and allied sectors.
Last year, Zhejiang-based Enovate Motors announced a plan to build a factory in Saudi Arabia following a state visit by President Xi Jinping.
The carmaker, which counts Shanghai Electric Group as an early investor, has a deal with Saudi Arabian authorities and joint-venture partner Sumou for an EV plant with an annual capacity of 100,000 units.
Shanghai-based Human Horizons, another minor player that makes luxury electric cars priced at US$80,000, established a US$5.6 billion venture with Saudi Arabia’s investment ministry in June to conduct “automotive research, development, manufacturing and sales”.
Also in June, Nio, another Chinese EV start-up, said it would receive US$738.5 million from an Abu Dhabi government-backed firm, CYVN Holdings, to strengthen the company’s balance sheet and fund technological innovation.
“Investors in the Middle East are interested in Chinese EV technology,” said Cao Hua, a partner at private-equity firm Unity Asset Management, which invests in automotive supply-chain businesses. “With their capital injection, Chinese companies can chase fast growth in the coming years.”
They have received licences from mainland China’s transport authorities to operate autonomous taxis, or robotaxis, in cities like Wuhan, Guangzhou and Beijing.