$10BN worth of investments signed at Arab-China Business conference in Riyadh

Why you're reading this: In the face of increasingly close ties with Beijing, the first day of the 10th Arab-China Business Conference held in Saudi Arabia concluded with the signing of 30 investment agreements. These agreements are valued at 37.5 billion Saudi riyals ($9.9 billion). The signed agreements span various sectors including technology, renewable energy, agriculture, real estate, minerals, logistics, tourism, and healthcare.

3 things you need to know

• Saudi's plan is to develop a domestic Electric Vehicle (EV) manufacturing industry
• Saudi-China trade makes up about 25 percent of the total volume of trade exchange the two sides
• This deals come as China's influence in the middle east region continues to grow

What deals did Chinese & Arab companies strike?

The initial day of the 10th Arab-China Business Conference saw a total of 30 investment agreements being signed, amounting to a combined value of $10 billion. These agreements encompass a wide range of sectors, such as technology, renewable energy, agriculture, real estate, minerals, supply chains, tourism, and healthcare.

As per the Saudi Investment Ministry, the Saudi government has entered into agreements with various Chinese entities for several projects. These include a joint venture aimed at conducting automotive research, development, manufacturing, and sales. Additionally, collaborations have been initiated for the development of tourism-related applications and the production of rail wagons and wheels within the state.

What is this Arab-China Business Conference about?

The two-day event (June 11-12) has been jointly organised by the investment and foreign ministries of Saudi Arabia, in collaboration with the General Secretariat of the Arab League, the Chinese Council for the Promotion of International Trade, and the Union of Arab Chambers.

Saudi Foreign Minister Prince Faisal bin Farhan, during the inauguration said: “The crown prince has continually amplified efforts to enhance the long-standing and advanced partnership between the Arab world and China in all sectors.”

The program of the event included plenaries, workshops, special meetings, and side events, all focused on various topics such as environmental sustainability, social responsibility, governance, and supply chain resilience. This comprehensive agenda attracted a notable attendance of over 3,500 business leaders, innovators, and policymakers from 26 countries.

As part of efforts to enhance trade relations with China, Saudi Arabia has announced the revival of the Silk Route during the event. Saudi Investment Minister Khalid Al-Falih emphasised that the Kingdom can serve as China's gateway to the Arab world, offering a strategic position as the world's second-largest economy seeks to strengthen trade ties with the region.

Has China put the US influence in the backseat?

Keeping a steady influence among the Arab nations has always been crucial and both the United States (US) as well as China have managed to keep a steady relationship with them, especially with Saudi Arabia. However, China has recently stolen the spotlight after it historically brokered a deal between Saudi Arabia and Iran as they agreed to restore diplomatic relations.