Saudi And Chinese Companies Sign 42 Investment Agreements Worth Over USD 1.74 Billion

During the Saudi-Chinese Business Forum in Beijing, Minister of Industry and Mineral Resources Bandar Alkhorayef oversaw the signing of 42 investment agreements between Saudi and Chinese companies. These agreements, valued at over $1.74 billion, cover sectors such as advanced industries, smart vehicles, energy solutions, medical devices, equipment, and mineral resources.

The forum was organized by the Federation of Saudi Chambers and attracted around 200 companies from both nations. This gathering provided a platform for economic cooperation and strategic alignment. In his keynote speech, Alkhorayef praised the Saudi-Chinese Business Council's role since 2006 in fostering investment partnerships and leveraging mutual opportunities across various sectors.

Alkhorayef highlighted the significant growth in economic relations between Saudi Arabia and China. Bilateral trade volume reached approximately SAR403 billion in 2024, more than doubling in less than a decade. This growth underscores the accelerating economic integration between the two countries.

Saudi Arabia remains China's leading supplier of fuel, petrochemicals, and advanced materials. Conversely, China is Saudi Arabia's largest source of imports, including machinery, electronics, transportation equipment, and consumer goods. This trading relationship is diversifying beyond traditional commodities to include high-value industrial products.

The minister noted substantial growth in mutual investments. Chinese investment in Saudi Arabia increased by about 30% in 2024 to exceed SAR31 billion. This expansion is particularly notable in emerging sectors like mining, automotive manufacturing, and petrochemicals.

Over 750 Chinese companies now operate within Saudi Arabia, contributing significantly to major projects such as NEOM and strategic industrial cities like Jubail and Jazan. Meanwhile, Saudi investment in China has surpassed SAR8 billion.

Alkhorayef emphasized the strategic synergy between Saudi Vision 2030 and China's Belt and Road Initiative. Both initiatives share objectives of enhancing connectivity, expanding trade, and building resilient industrial systems.

The minister outlined 12 priority sub-industrial sectors targeted by the National Industrial Strategy for development. These include sectors vital to national security like food, pharmaceuticals, military industries; sectors leveraging raw materials; and those capitalizing on Saudi Arabia's strategic geographic location.

The comprehensive strategy for mining focuses on exploring mineral resources within the Kingdom to maximise their value to the national economy. The partnership with the China Geological Survey has significantly contributed to discovering additional mineral resources.

Alkhorayef highlighted reforms aimed at enhancing investment attractiveness in mining by improving regulatory frameworks and streamlining licensing processes. As a result, Saudi Arabia's global standing improved dramatically from 104th to 23rd in the Mining Investment Environment Attractiveness Index.

This collaboration between Saudi Arabia and China represents a significant step towards achieving shared economic objectives through private sector engagement. The agreements signed during this forum are expected to further strengthen ties between these two nations across various sectors.

With inputs from SPA