As Saudi Arabia seeks to expand its economic horizon beyond oil, China has stepped up as its principal foreign investor, injecting a staggering $16.8 billion into the kingdom’s various sectors in 2023. This represents a monumental increase from the previous year’s $1.5 billion, with a keen focus on industries such as automotive, metals, and semiconductors. These figures, unveiled by Emirates NBD, underscore a burgeoning partnership between the two nations, with China at the helm accounting for 58% of the new business investments in Saudi Arabia.
The Arab world’s largest economy is on a mission to attract $100 billion in foreign direct investment by 2030, a vision championed by Crown Prince Mohammed bin Salman to bolster non-oil GDP and foster economic diversification. Though still short of this ambitious goal, 2023 marked a year of significant strides with foreign investment in new Saudi businesses exceeding $28.8 billion, a leap from the previous year and second only to the 2008 high of $34.3 billion.
In the broader context of shifting global alliances, Gulf nations are increasingly aligning with the East, particularly China and India—one of the world’s rapidly progressing economies. In a move indicative of the region’s strategic pivot, Saudi Arabia and the UAE have been extended invitations to the BRICS economic consortium, a development that could solidify China’s influence in the Middle East and North Africa. Meanwhile, the United States remains a key player, channeling $2.7 billion into the Saudi market, a 238% increase from the prior year, primarily in the software and IT sectors, with the UAE following suit with a focus on renewable energy.
Recent diplomatic endeavors further cement the Sino-Saudi relationship, with Saudi Arabia’s Minister of Culture, Prince Badr bin Abdullah, engaging in a series of agreements in Beijing aimed at fostering cultural ties. These agreements span a wide array of areas including museums, heritage, theater, architecture, and libraries, heralding a new era of cooperation between the two nations as expressed by Prince Badr.