Saudi Arabia and China reach multi-billion dollar deal for urban development
With the approval of Saudi Minister of Municipal, Rural Affairs and Housing Majid bin Abdullah al-Hogail and Saudi Ambassador to China Abdulrahman bin Ahmed al-Harbi, the Saudi Arabia-China Business Forum (held in Beijing) will receive a capital injection of more than SAR5 billion.
The Saudi-China Business Forum event kicked off in Beijing on Wednesday
This partnership between Arab and Chinese entities hopes to cover the development and financing of structures and projects to increase the housing stock. The signing of the treaties between companies and banks from both countries is expected to strengthen the real estate network in more than 17 cities in the Arab country.
Focusing on the social needs of the Saudis, the Forum emphasised the creation of urban furniture and the development of public infrastructure. In particular, the importance of linking municipalities by creating more roads and railways was highlighted.
One of the most crucial connections for expanding trade and economic exchange between the private sectors of the Kingdom of Saudi Arabia and the People's Republic of China is the Saudi-China Business Council.
When the Council of the Federation of Saudi Chambers and the Arab-China Friendship Association signed an agreement in 2003 to establish the Saudi-China Business Council, this body was born. On the Saudi side, the Council is composed of more than 100 investors, traders and entrepreneurs from various industries.
Al-Hogail expressed his enthusiasm for the start of the event and emphasised the Kingdom's commitment to strengthening its relationship with China under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz al-Saud, and Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia.
He highlighted the three summits that took place during the Chinese president's visit to the Kingdom in December, as well as the comprehensive strategic partnership agreement between the two nations that includes an action plan for collaboration in the housing sector.
Al-Hogail expressed his hopes for further cooperation in urban infrastructure, housing, real estate development and financing while highlighting the commitment of the leaders of both countries to further develop the municipal and housing sectors.
He emphasised the significant investment opportunities present in the Kingdom, where more than 300,000 housing units are currently under construction in 17 Saudi cities, totalling more than 150 million square metres and costing more than SAR 100 billion. Al-Hogail invited Chinese investors to finance real estate construction in Saudi Arabia.
He praised the productive cooperation of the Kingdom and Chinese companies in housing projects in Arabia and pointed out to SPA news agency that the Ministry of Municipal, Rural and Housing Affairs is currently working with a number of Chinese companies on housing projects valued at SAR3 billion.
Saudi Arabia and China are growing closer. In April, China brokered the deal that resumed diplomatic relations between the Kingdom and Iran. China's growing influence in the Gulf is a concern for the US, although China's focus is on investment and oil rather than politics and security.
Saudi Arabia was also China's top oil supplier by 2022
The economic reality of Riyadh-Beijing relations is becoming increasingly apparent. Last year alone, trade between China and the Middle East amounted to $421 billion, an increase of 30% compared to 2021, of which Arabia embodies 25% of the total.