The global site Lexology confirmed that the Kingdom is in a good position to take advantage of the opportunities offered by China’s continuous pursuit of an international investment strategy, as the Beijing administration is keen to diversify its investment portfolio and invest in foreign assets, and the Kingdom is an attractive option for it.
As the kingdom is the world’s largest supplier of crude oil to China, the kingdom is in a unique position to enhance China’s energy security and help the Beijing government meet its growing energy requirements. In addition, the kingdom’s economic reforms are designed to promote growth and attract foreign investment, making it an attractive option for Chinese companies and investors.
The website pointed out the Saudi government’s commitment to developing the country’s infrastructure, as it has made significant investments in transportation and logistics. This will make it easier for Chinese companies to access the Saudi market and establish operations in the Kingdom. Saudi Arabia also has a large and rapidly growing economy, with a population of more than 32 million.
As for Sino-Saudi trade relations, the 2019 Aramco IPO, in which China participated, is seen as an essential part of the kingdom’s economic diversification program in its efforts to attract foreign investment. Earlier this year, Aramco launched a joint venture with China to develop a new refinery and petrochemical complex in the northeast of the country. The Kingdom will supply HAPCO with 210,000 barrels per day of crude oil.
And the website added, “This step represents the consolidation of economic relations between the two countries and provides a significant boost to the oil sector in the Kingdom. It also reflects China’s continued interest in the Kingdom as an investment partner, and enhances Sino-Saudi relations.”
Looking ahead, it is clear that there are significant investment opportunities in the Kingdom for Chinese companies and investors. In 2020, the annual inflow of foreign direct investment from China to Saudi Arabia was about $390 million. It is undeniable that China considers Saudi Arabia a major strategic and economic partner in the region.
Finally, for Chinese companies and investors looking for opportunities in the turbulent global economy, the Kingdom remains an attractive and promising option. “Chinese business leaders should keep a close eye on the kingdom in the coming years as it looks to attract more foreign investment and pursue its economic reforms,” the website said.