China and Saudi Arabia Strengthen Financial Bonds
China has selected Saudi Arabia for its upcoming US dollar bond issuance, marking its first in three years. This decision indicates the strengthening financial relationship between the two countries.
Saudi Arabia is increasingly relying on Chinese investments to fund its extensive development initiatives. The Vision 2030 project, aimed at transforming the Saudi economy towards sustainability and innovation, has now reached a staggering value of $1.3 trillion.
China’s involvement in Saudi Arabia’s ambitious plans has opened new opportunities for Chinese real estate and technology sectors. Notably, Saudi Arabia is actively seeking Chinese investment for Neom, a futuristic city that is central to Vision 2030. This collaboration has led to several tech agreements between the two nations.
In August, Saudi Arabia’s sovereign wealth fund secured $50 billion in deals with Chinese financial institutions, highlighting the depth of their financial cooperation.
Additionally, Saudi Arabia has shown interest in Chinese tech ventures, evidenced by its recent backing of a Chinese rival to OpenAI. To further cement ties, Saudi Arabia launched two exchange-traded funds focused on Hong Kong and Chinese markets, facilitating easier access for Saudi investors to Chinese equities.
However, this burgeoning alliance has caught the attention of the United States. Earlier this year, the US proposed tech and security partnerships to Saudi Arabia, contingent on Riyadh distancing itself from its growing tech relationship with China.