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What is the reason behind China dominating the majority of business dealings with Saudi Arabia?

The recent roadshow held by the Saudi Ministry of Investment in China saw Minister Khaled Al-Faleh meeting with Chinese counterparts to discuss expanding trade, investments, and technology collaboration. During these discussions, both sides expressed a willingness to jointly promote China’s Belt and Road infrastructure investment program and Saudi Arabia’s Vision 2030 initiative.

The two nations also committed to enhancing cooperation in various sectors including energy, aviation, solar energy, artificial intelligence, and safeguarding global industrial supply chains. This deepening relationship builds upon the initial foundation of hydrocarbon ties and has led to the signing of a comprehensive strategic partnership agreement and multiple investment deals between the two countries.

At the recent conference, deals worth over $25 billion were signed, encompassing agreements in energy, agriculture, tourism, mining, financial services, logistics, infrastructure, technology, and healthcare. Notably, the Saudi Esports Federation and Chinese Esports Tournament Operator VSPO signed a memorandum of understanding worth $8.5 billion to promote electronic sports opportunities and cooperation.

Additionally, Ajlan & Bros Holding Group, a prominent family office in China, inked a $7.5 billion agreement with Oriental Energy Co. to explore collaborative opportunities in manufacturing. The Saudi Ministry of Investment also struck a $2 billion deal with China’s CRRC Group to develop renewable energy and sustainable mobility projects in the Kingdom.

The partnership between Saudi Arabia and China has gained momentum, with bilateral trade surpassing $106 billion last year, marking a significant increase from the previous year. China’s active participation in Saudi Arabia’s investment roadshows underscores its growing presence in the Kingdom’s business landscape.

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