Saudi Bright Spots on The Chinese Investment Map

The policies of His Royal Highness Prince Muhammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, and Minister of Defense, put the Kingdom of Saudi Arabia on the international investment map and has become a destination for an ambitious and bold Chinese investment.

The Kingdom carries bright spots that place it on the Chinese investment map, as it is a strategic pivot on the path of the “Chinese Silk Road” initiative, which closely converges with the ambitious Saudi Vision 2030, which aims to diversify financial revenues along with reforms, liberalization of the economy from restrictions and increasing investment facilities in the Kingdom.

The most prominent of these points that the Chinese investor benefits from is the increase in the value of a foreign direct investment in the Kingdom last year to $230.8 billion.

The New Kingdom vision also creates unprecedented opportunities for Chinese investors; And this is with the diversity of Saudi sectors, whether in the areas of the Kingdom’s leadership, such as oil, or developing, like entertainment, information technology, and financial services with high financial returns.

The Chinese investor is also benefiting from a massive privatization program launched by Riyadh. It allows local and international partners to participate in state-owned assets, in addition to promising and globally unique projects.

The government initiatives launched by the Kingdom in recent years as well are a bright spot for Chinese investment; It targets an incubating environment for foreign investment and developing the business environment in the country.

As for the infrastructure, the Kingdom of Saudi Arabia enjoys a distinguished geographical location strategically that made policy makers in China consider it a distinct center in the “Silk Road” initiative, as it links the three continents and is a main gateway to North Africa, in addition to its regional, international and Islamic weight.

The coasts and international sea lanes are also located on the outskirts of the Kingdom, where the Red Sea accounts for 13% of global trade flows, and the largest port of the Kingdom is the Red Sea port, which is the second fastest growing port in the world.

With the flow of Chinese trade movement in recent decades, Saudi Arabia is an important logistical platform for China’s maritime activity, which strengthens government efforts to raise the efficiency of the transport and communication network to ensure the highest levels of logistics services.

And for Chinese investors looking for real estate investment and asset management, the Kingdom is witnessing a great urban movement, especially in major cities that are waiting for huge growth opportunities, in addition to taking advantage of the presence of more than 35 industrial and economic cities in strategic areas specifically designed to provide competitive advantages and common and comprehensive benefit at competitive prices compared to the rest Countries of the world.

The Kingdom also has the advantage of being the least country in collecting taxes, in addition to its occupying the highest international ranks in the world, as it is free of environmental and natural disasters, and it was one of the first countries to control the Coronavirus pandemic recently due to its strong health system and high-level facilities.

The government efforts to target Chinese investment extended towards tourism transformation and economic openness, which coincided with the directions of the Saudi leadership to open new investment markets in the country.

Needless to know, the Kingdom has a stable monetary system and an independent financial sector. The Saudi money market “Tadawul” is one of the largest capital markets in the region, with a market value of about $538 billion in 2019, in addition to deep liquid debt and securities.