Riyadh: For more than 75 years, Saudi Arabia and the People's Republic of China have engaged in strong bilateral relations, with the two countries formalizing their political partnership in 1990. In December 2022, Saudi Arabia and China's friendship again reached new heights following President Xi Jinping's attendance at the China-Arab States Summit hosted in the Kingdom. The event, which culminated in the signing of a Comprehensive Strategic Partnership Agreement (CSP) and $30 billion worth of deals, focused on strengthening cooperation in various fields and establishing pathways to achieve common goals.
According to Saudi Press Agency, Minister of Industry and Mineral Resources Bandar Al Khorayef is leading a high-level delegation to China, as part of the Kingdom's efforts to further enhance trade relations and economic partnerships with Chinese leaders. This visit underscores the depth of a well-established alliance, placing particular emphasis on trade, industry, and investment.
In recent years, Saudi Arabia and China have witnessed remarkable growth in bilateral trade, which has risen from $42 billion in 2016 to $107.5 billion in 2024. China has emerged as the Kingdom's largest trading partner, reflecting the substantial demand for Saudi crude oil and petrochemical products in China, as well as the Kingdom's imports of Chinese machinery, electronics, transport equipment, and industrial inputs. In parallel, Saudi Arabia has become China's leading trading partner in the Middle East, highlighting the complementary nature of their economies.
This trajectory is not only driven by exports but also by the alignment of national agendas. China's Belt and Road Initiative and Saudi Arabia's Vision 2030 have both established powerful manifestos for cooperation, connectivity, industrial diversification, and the building of resilient supply chains. Together, these strategies create opportunities for collaboration in areas such as advanced manufacturing, clean energy, technology transfer, and mining.
The steady rise of Chinese investment in Saudi Arabia is a sign that this partnership is only growing stronger. More than 750 Chinese companies currently operate in the Kingdom, spanning various sectors, including construction, technology, industrial manufacturing, and natural resources. China has also contributed to major projects, such as NEOM and the development of localized manufacturing, which serve both domestic and regional markets. In 2024 alone, Chinese investment in Saudi Arabia increased by 29%, reaching $8.26 billion. These investments not only demonstrate China's long-term confidence in Saudi Arabia's domestic market, the largest in the Middle East, but also highlight the appeal of the Kingdom's stable economy, strong regulatory framework, and ambitious diversification plan under Vision 2030.
The centerpiece of Saudi Arabia and China's cooperation is the Jazan City for Primary and Downstream Industries, which has become a focal point for China's industrial endeavors. Strategically located on the Red Sea coast, Jazan aligns with China's Belt and Road Initiative. The industrial city hosts a dedicated Chinese Enterprise Special Development Zone, where companies engage in steel, petrochemical, silicon, and shipbuilding services.
The significance of the Jazan cluster for China stems from both its geographical location and policy considerations. Its proximity to continents such as Africa, Europe, and the broader MENA region is underpinned by Saudi Arabia's advanced logistics and industrial infrastructure, rendering it a vital hub for global supply chains. Jazan provides a secure base for industrial operations, offering a platform to easily export products to other regional markets, while creating tangible value for both nations and expanding China's commercial reach.
Therefore, this visit serves multiple purposes. It reinforces Saudi Arabia's role as a trusted economic partner and further encourages Chinese investment in the industrial and mining sectors by showcasing the Kingdom's own capabilities. During the delegation, Al Khorayef will attend the Industrial Automation Show in Shanghai, where Saudi Arabia's vast industrial opportunities will be on display. Furthermore, Al Khorayef will inaugurate the Saudi Pavilion, highlighting the Kingdom's National Industrial Strategy, advanced manufacturing ecosystem, and rapidly growing mining sector, positioning Saudi Arabia as a global hub for innovation, industrial growth, and critical minerals to international investors.
Over the years, Saudi Arabia and China have successfully maintained a positive bilateral relationship despite global economic pressures. As both countries look to the future, their focus is shifting to innovation, sustainable growth, and integrated industrial sectors. Minister of Industry's engagement reaffirms the Kingdom's determination to continue nurturing its bilateral relationship with China, while achieving long-term, shared prosperity.