Arab-China Business Conference underscores strengthening ties

The forum concluded with the signing of the Riyadh Declaration, underscoring continued collaboration between the China and Arab countries.

by Gulf Business

June 13, 2023

Image credit: Arab China Business Conference/ Twitter

The hosting of the 10th Arab-China Business Conference by Saudi Arabia gave a new impetus to Arab-Chinese cooperation in all economic and cultural fields, thanks to the desire of both parties to upgrade cooperation to a wider area.

The session of the investment symposium, which ran from June 11 to 12 in Riyadh, brought together more than 3,500 business and government leaders from China and across the Arab world to explore expansion and investment opportunities, amid warming diplomatic relations.

The business forum, which was attended by more than 150 speakers from ministers and leaders of major companies in China and the Arab countries, discussed over two days common areas of cooperation in the fields of economy, investment, and trade and held nine-panel sessions.

The Arab and Chinese sides agreed to explore further opportunities to enhance cooperation and investment in all economic fields, including quality projects of priority for both sides.

The two sides agreed to economic, trade, investment and financial ties based on comprehensive cooperation and joint development for a better future while upgrading the partnerships to serve common interests and contributing to achieving the aspirations of both sides.

The symposium also emphasized the importance of reducing carbon emissions committed by both Arab countries and China until 2060 – which is expected to lead to the addition of as much as 1000 gigawatts of renewable energy across the Arab world and Africa.

Investments in the renewable energy sector are expected to give the private sector in both the Arab world and China opportunities to expand investments in the value chain in this field.

China-Arab business forum

Meanwhile, 23 agreements and MoU were signed between the Arab and Chinese sides, with a total value of more than $10bn across different industries including technology, renewable energy, agriculture, real estate, metals, tourism and healthcare. Ministry of Investment of Saudi Arabia (MISA) signed a $5.6bn deal with Chinese electric car maker Human Horizons to set up an automotive research, development, manufacturing, and sales joint venture.

Business-to-business deals that were signed on the sidelines of the event include a $533m deal between the AMR ALuwlaa Company and Zhonghuan International Group (Hong Kong) to build a factory to reduce iron ore and manufacture iron pellets for smelting plants in the kingdom.

Saudi Arabia’s ASK Group and the China National Geological & Mining Corporation inked a $500m cooperation agreement to develop, finance, construct and operate an Arabian Shield copper mining project.

Mabani Al- Safwah, China Gezhouba Group International Engineering Company and Top International Engineering Corporation Arabia also signed a $266m framework agreement to advance building construction in the country.

From insightful panel discussions to fruitful collaborations, the #ArabChinaConference has been a platform for exploring key sectors and forging strategic partnerships. With a focus on sustainable development, innovation, and economic growth.

Highlights from Day 2 ▶️ pic.twitter.com/s0GBqHQW9G

— Arab China Business Conference (@ArabChinaConf) June 12, 2023

Meanwhile, in addition to the deal with Human Horizons, Saudi Arabia sign several agreements including a $266m deal with Hong Kong-based Android developer Hibobi Technology to develop tourism and other apps.

The foreign ministry also facilitated a $250m deal between Saudi railway firm SABATCO and Chinese state-owned rolling stock manufacturer CRRC to manufacture rail wagons and wheels in the Gulf state.

Saudi Arabia’s ministries of industry, mineral resources and Chinese industrial manufacturer Sunda signed a $150m deal to produce soda, chlorine and derivatives, chlorinated paraffin, calcium chloride, polyvinyl chloride and related conversion products in the country.

The volume of international trade between the Arab countries and China reached about $430bn (SAR1.6tn) in 2022, a 31 per cent increase compared to 2021. The balance of foreign direct investment in China in 2021 amounted to about $3.6tn – 12 per cent of which is from the Arab world.

Similarly, Chinese foreign direct investment abroad grew at a rate of 20 per cent annually, the Arab world received $23bn – which the Arab countries aspire to increase.