At the recent Saudi-China Business Forum in Beijing, entities from Saudi Arabia and China endorsed multiple housing and infrastructure contracts, highlighting the strengthening bond between the two nations.
The forum, chaired by Saudi Arabia’s Minister for Municipal, Rural Affairs and Housing, Majid bin Abdullah Al-Hogail, primarily concentrated on investment possibilities between the two nations in areas such as urban infrastructure, housing, real estate development, and financing. During the event, Al-Hogail extended an invitation to Chinese companies to engage in Saudi Arabia’s burgeoning real estate market.
According to the Saudi Press Agency, a total of 12 agreements related to infrastructure development and financing were signed during this event, with the total value exceeding £1 billion ($1.33 billion). Although the specifics of the entities involved have not been disclosed, it has been confirmed by the Saudi Ministry for Municipal, Rural Affairs and Housing that Al-Hogail interacted with representatives from the Chinese state-backed investment powerhouse, CITIC. Their discussion centred on construction opportunities in Saudi Arabia and the potential adoption of “green housing technology,” as detailed in a press statement released on Tuesday.
The bigger picture: Ties between Saudi Arabia and China are evidently deepening. Earlier in March, China played a pivotal role in brokering the pact that saw the restoration of diplomatic relations between Saudi Arabia and Iran.
Moreover, economically, Saudi Arabia hosted the Arab-China Business Conference in June, which generated deals surpassing £7 billion ($10 billion). Just last month, Saudi Aramco procured a stake worth £2.5 billion ($3.4 billion) in the Chinese petrochemical entity, Rongsheng Petrochemical Co. Ltd.
In 2022, it’s noteworthy to mention that Saudi Arabia was China’s primary supplier of oil.