Investing.com – Saudi Arabia’s sovereign wealth fund is in talks to invest less than $250 million in Chinese electric car maker Human Horizons Group, according to informed sources..

This is a step to support the Kingdom’s initiative to build a local automotive industry.

Public Investment Fund, the sources said (PIF) He could take a $3 billion stake in the Shanghai-based company. Even if an agreement is reached this year, finalizing an agreement on terms could extend the deadline, they added..

No final agreement has yet been reached.

Human Horizons is actively considering several strategic avenues, including raising up to $1 billion from private investors to fuel its expansion efforts..

Additionally, the company is said to be exploring the possibility of executing an initial public offering in collaboration with UBS Group and Morgan Stanley..

The potential investment by the Public Investment Fund coincides with a series of recent deals the Kingdom has concluded in the sector, part of its broader strategy to reduce oil dependence and diversify its economy..

Among these developments is a USD 5.6 billion contract with Human Horizons. Notably, luxury models of Hi-Fi SUVs from Human Horizons can reach prices of 800,000 (about $148,877)..

This year, Saudi Arabia approved the establishment of a manufacturing facility for its local electric vehicle brand Zar.. Additionally, it opened another facility in partnership with California-based Lucid Group (NASDAQ:.

In a recent development, Hyundai Motor Company has agreed to set up a car assembly plant near Jeddah in partnership with the Public Investment Fund..

The deal with Human Horizons will further strengthen Saudi Arabia’s relationship with China. Since President Xi Jinping’s visit to the kingdom in December, Chinese business leaders have been increasingly keen to pursue investment opportunities in the Gulf region and potentially participate in the Saudi government’s broader economic transformation plan, Vision 2030..