Saudi Arabia, China ink 30 trade pacts worth $10 billion
-
Business Staff Reporter Garowe Online
- Posted On 13-06-2023, 05:34PM
RIYADH - Saudi Arabia and China signed 30 investment agreements worth over $10 billion on the first day of the Arab-China Business Conference in Riyadh. These deals focus on sectors like technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare.
The largest deal worth $5.6 billion was between the Kingdom’s Investment Ministry and Human Horizons, a Chinese developer of autonomous driving technologies and manufacturer of electric cars under the HiPhi brand, to establish a joint venture for automotive research, development, manufacturing, and sales.
More than 3,500 business leaders attended the two-day conference. China’s outward foreign direct investment has increased by 20 percent each year over the past decade. The Arab world accounts for about $23 billion of the total, said investment minister Khalid Al Falih.
According to the Investment Ministry, the Saudi government signed deals with several Chinese entities for projects including a joint venture for automotive research, development, manufacturing and sales, development of tourism and other apps, and production of rail wagons and wheels in the Kingdom.
Several business-to-business deals were also signed at the key business event that began in Riyadh on Sunday. Speaking at the event, Saudi Energy Minister Prince Abdulaziz bin Salman said: “I would not be surprised if you will hear more announcements soon on Saudi-Chinese investment.” He further alluded that the Kingdom seeks collaboration with the world’s second-largest economy instead of competition.
A $266 million deal was signed by Saudi Arabia with Hong Kong-based Android developer Hibobi Technology Ltd. to develop tourism and other apps. A $250 million deal facilitated by the Investment Ministry between Saudi railway company SABATCO and Chinese state-owned and publicly traded rolling stock manufacturer CRRC to manufacture rail wagons and wheels in the Kingdom.
A $150 million deal between the Investment Ministry, the Ministry of Industry and Mineral Resources, and Chinese industrial manufacturer Sunda to manufacture caustic soda, chlorine and derivatives, chlorinated paraffin, calcium chloride, polyvinyl chloride, and related conversion products in the Kingdom.
Prince Abdulaziz said there are synergies between the two countries, as the Kingdom is progressing steadily with its Vision 2030 plan, while China is pursuing its Belt and Road Initiative. The two-day event has been organized by Saudi Arabia’s investment and foreign ministries in collaboration with the General Secretariat of the Arab League, the Chinese Council for the Promotion of International Trade, and the Union of Arab Chambers.
Saudi Foreign Minister Prince Faisal bin Farhan, who inaugurated the conference on behalf of Crown Prince Mohammed bin Salman, said: “The crown prince has continually amplified efforts to enhance the long-standing and advanced partnership between the Arab world and China in all sectors.”
He said the conference outlines methods for achieving mutual compatibility, exchanging experience, and launching new opportunities that enable growth and investment, resulting in prosperity and progress for all.
The program of plenaries, workshops, special meetings, and side events dedicated to topics such as environmental, social, governance, and supply chain resilience attracted more than 3,500 business leaders, innovators, and policymakers from 26 countries.
In a bid to further boost trade ties with China, Saudi Arabia announced the revival of the Silk Route on the sidelines of the event. Saudi Investment Minister Khalid Al-Falih said the Kingdom can serve as China’s gateway to the Arab world as the world’s second-largest economy seeks to elevate trade ties with the region.
The Kingdom represents 25 percent of the $432 billion trade between China and Arab countries in 2022. Commenting on the revival of the Silk Route, the minister said the initiative aligns with Saudi Arabia’s future vision that seeks to diversify its economy and use modern technology to elevate the skills of its youth.
The volume of trade between Saudi Arabia and China hit $106 billion in 2022, registering a 30 percent increase over 2021.
GAROWE ONLINE
