TRADE

SAUDI AND CHINA STRENGTHEN TIES WITH USD 25BN

The recent China-Saudi Investment Conference in Beijing, held in co-ordination with the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products (CCCME), underscored the importance of closer trade ties between the two nations.

The conference aims to bolster the prevailing alliance between Saudi Arabia and China across the investment, trade, and economic spheres. Aligned with the kingdom's Vision 2030, the event also seeks to fortify strategic collaborations, foster trade, and stimulate investment opportunities across diverse sectors. Additionally, the event supports the objectives of the Chinese Belt and Road Initiative, which focuses on connecting Asia, Africa, and Europe.

The China-Saudi Investment Conference led to the signing of more than 60 memorandums of understanding (MoU) and agreements totalling USD 25 billion. Areas of collaboration included sectors such as energy, agriculture, tourism, mining, financial services, logistics, infrastructure, technology, and healthcare.

    

A key agreement was signed in the information and communications technology space, as the Saudi Esports Federation and Chinese esports tournament operator VSPO inked an MoU valued at USD 8.5 billion. The deal aims to promote opportunities, co-operation, and participation in esports.

In manufacturing, China’s Oriental Energy Co. and Saudi Arabia’s Ajlan & Bros Holding Group Co. entered into a USD 7.5 billion agreement to explore collaborative ventures.

Within the energy sector, Saudi’s Ministry of Investment signed a USD 2 billion deal with China’s state-owned CRRC Group, focusing on developing opportunities in the kingdom, specifically covering project development and manufacturing of renewable energy and sustainable mobility.

The investment conference boasted attendance from high-profile regional leaders, including representatives from Saudi Arabian Oil Co. (Aramco), Saudi Basic Industries Corp. (SABIC), and ACWA Power.

Nine Chinese companies secured licenses to establish their regional headquarters in Saudi Arabia. These companies are industry giants Huawei, Dahua, China Railway Construction Corp., China Communication Services, China Harbor Engineering Co., China Civil Engineering Construction Corp., BGI Group, Nuctech, and iMile.

Earlier in September, the Saudi Tadawul Group and the Shanghai Stock Exchange signed an MoU that will pave the way for dual listings of exchange-traded funds (ETF), investor relations initiatives, infrastructure development, and advancements in fintech, environmental, and social practices.

The Saudi stock exchange signed an MoU with the Chinese Shenzhen Stock Exchange, with the vision to enhance collaboration and explore opportunities, including joint listings, and financial technology.

Notably in November, the Saudi regulator and the People’s Bank of China sealed a local currency swap agreement worth USD 6.93 billion. The three-year deal, established in the context of financial co-operation between the two central banks, can be extended after two years by mutual agreement, according to a press statement issued by the Saudi regulator.

WATER AND AI DEALS

In addition to the conference, Saudi offcials visited several Chinese cities to meet with business leaders in other regions.

The Ministry of Environment, Water and Agriculture showcased investment opportunities in the kingdom’s aquaculture sector to representatives of more than 60 specialised Chinese companies in Shenzen. The discussions came during the participation of the ministry’s delegation – represented by the National Fisheries Development Program – in the Global Investment Promotion Conference.

Yasser Al-Onaizan, CEO of the Saudi Authority for Data and Artificial Intelligence (SDAIA) National Center for AI, also highlighted generative AI initiatives and projects in the kingdom, particularly in the fields of health, Arabic language, computer vision, energy and environment, during a session titled "Digital Economy and Artificial Intelligence – Productivity and Growth" in Shenzhen, China.

SDAIA, the national reference for data and AI in Saudi Arabia, has worked on several initiatives in this regard, including organising a series of generative AI forums in Saudi universities designed to enhance knowledge of the field and highlight its many benefits to humanity. The authority also undertakes to launch the MENA region’s first-of-its-kind generative AI accelerator (GAIA), which contributes to supporting and empowering start-ups specialising in generative AI, and issuing reports on generative AI and large language models.

Meanwhile, the Hong Kong Special Administrative Region (HKSAR) government welcomed Asia's first-ever Saudi Arabia ETF in the city on 29 November.

Through the ETF, investors will be able to trade the constituent stocks of the Saudi stock market, including Saudi Aramco’s, directly in the Hong Kong market in Hong Kong dollar or renminbi (RMB). The ETF has the largest assets of its kind in the world.