Billion-dollar urban infrastructure deals between Saudi Arabia and China strengthen bilateral ties

Saudi Arabia and China have solidified their bilateral relations through recent housing agreements, marking another milestone in their growing partnership. The collaborative efforts were formalized during the Saudi-China Business Forum held in Beijing this week, where Saudi Arabia's Minister for Municipal, Rural Affairs and Housing, Majid bin Abdullah Al-Hogail, played a pivotal role by signing the agreements on behalf of his country. The focus of the Saudi-China Business Forum encompassed diverse investment opportunities, including housing, urban infrastructure, real estate development, and financing. Minister Al-Hogail actively encouraged Chinese companies to explore investments in Saudi Arabia's real estate sector during the forum.

A total of 12 agreements and memorandums of understanding were inked during the event, with five housing deals amounting to over SAR 5 billion ($1.33 billion). Additionally, Minister Al-Hogail engaged with representatives from the Chinese state-owned investment conglomerate CITIC, addressing topics such as construction projects in Saudi Arabia and the progression of green housing technology. Expressing optimism about the signed deals, Minister Al-Hogail conveyed gratitude to the Chinese delegates for their warm hospitality and dedication to strengthening the bilateral ties between the two nations. This year has witnessed an expanding partnership between Saudi Arabia and China, transcending the realm of real estate. In March, China played a mediating role in the restoration of diplomatic relations between Saudi Arabia and Iran. Further demonstrating the robust economic ties, Saudi Arabia hosted the Arab-China Business Conference in June, resulting in deals totalling $10 billion. Notably, a $5.6 billion joint venture between the Saudi Ministry of Investment and Chinese electric vehicle manufacturer Human Horizons was established during the conference. This venture aims to collaborate on the development, manufacturing, and sale of vehicles.

Key agreements also included collaborations on constructing train carriages and producing chemicals such as chloride and chlorine within the kingdom. In the previous month, Saudi Aramco, the petroleum refineries company, secured a $3.4 billion stake in China's Rongsheng Petrochemical Co. Ltd. Although more recent figures indicate Russia surpassing Saudi Arabia as China's top oil supplier, China remains a crucial export destination, accounting for 14.8 per cent of Saudi Arabia's total exports, equivalent to $4.15 billion.

During Chinese President Xi Jinping's visit to Saudi Arabia in December, both nations solidified their collaboration through multiple investment agreements, totalling an estimated $30 billion. This continuous exchange of investments and partnerships signifies the enduring and strengthening relationship between Saudi Arabia and China.