Saudi Arabia and China have strengthened their economic ties with the signing of 30 investment agreements worth $10 billion on the first day of the 10th Arab-China Business Conference.
The agreements span various sectors, including technology, renewables, agriculture, minerals, real estate, supply chains, healthcare, and tourism. This significant milestone reflects the growing collaboration between the two countries and their shared vision for mutual growth and prosperity.
Among the notable agreements is a $5.6 billion joint venture between the Saudi Investment Ministry and Human Horizons, a Chinese developer of autonomous driving technologies and electric cars. This partnership aims to establish an automotive research, development, manufacturing, and sales venture in Saudi Arabia. Additionally, a $266 million deal was signed with Hong Kong-based Android developer Hibobi Technology Ltd. to develop tourism and other mobile applications, further enhancing the digital landscape in the Kingdom.
Infrastructure development also took center stage, with a $250 million deal facilitated by the Investment Ministry between Saudi railway company SABATCO and Chinese rolling stock manufacturer CRRC to manufacture rail wagons and wheels in Saudi Arabia. Another significant agreement worth $150 million involves the production of various industrial products such as caustic soda, chlorine derivatives, and polyvinyl chloride in the Kingdom, in collaboration with Chinese industrial manufacturer Sunda.
During the conference, Saudi Energy Minister, Prince Abdulaziz bin Salman emphasized the importance of collaboration between Saudi Arabia and China, highlighting their complementary strengths and the potential for further investment. Rather than engaging in competition, the Kingdom seeks to foster a strategic partnership with the world’s second-largest economy. Prince Abdulaziz also hinted at the possibility of more investment announcements in the near future.
The conference, organized by Saudi Arabia’s investment and foreign ministries in collaboration with the Arab League, the Chinese Council for the Promotion of International Trade, and the Union of Arab Chambers, attracted over 3,500 business leaders, innovators, and policymakers from 26 countries. The program featured plenaries, workshops, special meetings, and side events covering topics such as environmental, social, and governance issues, as well as supply chain resilience.
In a bid to further enhance trade ties, Saudi Arabia announced the revival of the Silk Route during the conference. The Kingdom, which represents a quarter of the $432 billion trade between China and Arab countries in 2022, aims to serve as China’s gateway to the Arab world. This move aligns with Saudi Arabia’s vision for economic diversification and leveraging modern technology to empower its youth.
The bilateral trade between Saudi Arabia and China has been steadily growing, reaching $106 billion in 2022, a 30 percent increase compared to the previous year. These developments highlight the potential for even stronger economic cooperation between the two nations and pave the way for increased investment, job creation, and knowledge exchange.
The conference’s second day will feature a closing keynote address from Dilma Rousseff, the former president of Brazil and the current president of the New Development Bank. This multilateral development bank, established by Brazil, Russia, India, China, and South Africa, aims to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing economies. The Arab-China Business Conference serves as a platform to foster deeper ties and explore new avenues of collaboration between Arab countries and China. Through such initiatives, both Saudi Arabia and China are poised to unlock the immense potential of their partnership, driving economic growth, and fostering mutual understanding in the years to come.