Saudi Arabia has strengthened its trade, industrial and investment ties with two of Asia’s largest economies – China and Japan – through high-level visits aimed at expanding cooperation in trade, technology, manufacturing, and sustainable development. 

The engagements underline the kingdom’s broader Vision 2030 goal to diversify its economy, attract foreign investment, and advance its industrial and mining sectors through technology transfer and innovation. 

In China, discussions centred on establishing partnerships in advanced manufacturing, renewable energy, aerospace, and smart mobility. A key outcome was an agreement with ZGC Group, for a major Chinese innovation platform to set up operations in Riyadh in coordination with Saudi Arabia’s National Industrial Development and Logistics Program. 

The initiative is designed to localise high-value industries, promote research and development, and enhance industrial capacity. The two countries also agreed on a joint work plan in the mining sector to support knowledge exchange, identify new mineral opportunities, and advance the kingdom’s ambition to become a global mining hub. 

Beyond investment, cooperation extends to emerging technologies that align with Saudi Arabia’s long-term sustainability goals. Partnerships in renewable energy storage, smart logistics, and autonomous mobility complement the kingdom’s target of generating half its electricity from renewables by 2030. Collaboration on advanced aerospace and defence manufacturing supports its eorts to localise production and build domestic capability in high-tech industries. These initiatives collectively reinforce the growing depth of Saudi–China economic relations, with China remaining the kingdom’s largest trading partner

Meanwhile, Saudi Arabia advanced its economic cooperation with Japan through the 8th Saudi–Japan Vision 2030 Committee meeting. The talks reaffrmed joint commitments to expand trade and investment, with bilateral trade reaching USD 138 billion in 2024 and Japanese investment in the kingdom reached more than USD 23 billion.

Key sectors of focus include energy transition, transport and logistics, water and waste management, and advanced manufacturing. A new investment platform was launched to facilitate private-sector collaboration and deepen financial and industrial links between the two nations.

NON-OIL TRADE SOARS

Saudi Arabia’s non-oil exports, including re-exports, surged 17.8% in the second quarter of 2025, compared to the second quarter of last year. 

National non-oil exports, excluding re-exports, increased by 5.6%. Moreover, the value of re-exported goods increased by 46.2% during the same period, according to latest data from the General Authority for Statistics .

Merchandise exports fell 7.3% during the second quarter compared to the previous period, due to a 15.8% decrease in oil exports. The percentage of oil exports out of total exports all fell from 74.7% in the second quarter of 2024 to 67.9% in Q2 2025, as non-oil exports increased. 

Merchandise imports rose 13.1% in the second quarter of 2025, while the trade balance surplus narrowed by 56.2% compared with the same period in 2024. Non-oil exports, including re-exports, grew 17.8% year on year, and national non-oil exports (excluding re-exports) increased 5.6%. The value of re-exported goods surged 46.2% over the same period. 

Total merchandise exports declined 7.3% in the second quarter from a year earlier, reflecting a 15.8% fall in oil exports. Among non-oil exports, chemical products remained the leading category, accounting for 23.0% of the total and increasing 5.8% year on year. Machinery, electrical equipment, and parts followed, making up 21.7% of total non-oil exports, with a notable 120.8% annual increase.

On the import side, machinery, electrical equipment, and parts were the largest category, representing 28.9% of total imports and rising 28.7% from Q2 2024. They were followed by transportation equipment and parts, which accounted for 13.4% of imports, up 12.1% year on year. 

China remained Saudi Arabia’s largest trading partner, receiving 14.2% of total exports in Q2 2025. It was followed by the United Arab Emirates (10.0%) and India (8.8%). Other leading destinations included South Korea, Japan, Egypt, the United States, Bahrain, Malta, and Poland. Exports to these 10 countries collectively represented 65.3% of total exports.

China also ranked first as a source of imports, accounting for 27.4% of the total, followed by the US (8.5%) and the UAE (6.2%). Other key suppliers included India, Germany, Japan, Italy, Switzerland, France, and the United Kingdom, with the top 10 import partners together contributing 66.7% of total imports.