RIYADH: Chinese companies are set to expand their presence in Saudi Arabia and the broader Middle East and North Africa region as the Kingdom launched its inaugural China Trade Week in Dammam on Sunday.
More than 200 companies from the Asian country are taking part in the event to explore investment opportunities in the Kingdom amid the growing Saudi-Sino ties.
The inaugural CTW is considered very crucial, as it will help Chinese firms to expand their footprint in the Kingdom, along with seeking further collaborations with entities in the wider MENA region.
Opportunities
Hosted by MIE Events, in collaboration with Dhahran Expo, CTW Saudi Arabia 2023 is expected to be a platform where Chinese manufacturers will showcase various innovative products in key sectors including construction and building materials, interior design, machinery and hard tools, and heating, ventilation, and air conditioning.
“CTW Saudi Arabia 2023 emerges as the ideal platform for local businesses to connect with esteemed high-profile Chinese manufacturers, opening doors to unique opportunities for Saudi companies to form partnerships and distribution channels with 200-plus Chinese enterprises,” a CTW statement.
FASTFACTS
- More than 300 exhibitors will participate in the event, where over 4,000 Chinese products will be exhibited. The event which is expected to attract 2,000 visitors will also feature 12 seminars.
- During the event, China will exhibit various growing trends in the construction sector which include the usage of sustainable building materials to the adoption of advanced construction techniques.
- The event will also exhibit machinery and hard tools that can be used in the construction sector to increase the efficiency of operations.
- The Kingdom exported goods worth SR19 billion ($5.07 billion) in September. On the other hand, Saudi Arabia imported goods worth SR12.3 billion from China in September.
- In November, the Saudi Central Bank, also known as SAMA, and the People’s Bank of China signed a local currency swap agreement worth SR26 billion.
It added: “This event stands out as a premier B2B (business to business) trading platform for professionals seeking to engage with distinguished Chinese manufacturers and suppliers.”
According to the CTW website, more than 300 exhibitors will participate in the event, where over 4,000 Chinese products will be exhibited. The event which is expected to attract 2,000 visitors will also feature 12 seminars.
During the event, China will exhibit various growing trends in the construction sector which include the usage of sustainable building materials to the adoption of advanced construction techniques.
The event will also exhibit machinery and hard tools that can be used in the construction sector to increase the efficiency of operations.
In the interior design sector, the exhibition will showcase the latest trends in furniture, lighting and decor.
During the exhibition, Chinese companies will also show emerging trends in the HVAC sector, as the world sails toward a sustainable future.
“As climate control becomes increasingly important in modern buildings, the HVAC sector will offer a glimpse into the future of heating, ventilation, and air conditioning solutions,” the statement added.
It said: “This event provides an exclusive opportunity for 200 Chinese construction and building companies looking to expand their footprint in Saudi Arabia. By participating in CTW Saudi Arabia 2023, they can establish connections with a wide network of local businesses, fostering valuable partnerships to penetrate the Saudi market.”
Growing ties
Trade and economic relationship between Saudi Arabia and China has always been strong, as the Kingdom exported goods worth SR19 billion ($5.07 billion) in September. On the other hand, Saudi Arabia imported goods worth SR12.3 billion from China in September.
The total volume of trade between Saudi Arabia and China hit $120 billion in 2022, registering a 30 percent increase over 2021.
Speaking at an event on Saturday, vice chairman of the Saudi-Chinese Business Council, Anas Al-Fadda said: “China represents 21 percent of the Kingdom’s trade, focusing primarily on sectors like infrastructure, petrochemicals and manufacturing.”
In November, the Saudi Central Bank, also known as SAMA, and the People’s Bank of China signed a local currency swap agreement worth SR26 billion.
In a press statement, SAMA said that the three-year agreement “has been established in the context of financial cooperation between the Saudi Central Bank and the People’s Bank of China.”
On the other hand, the People’s Bank of China said that the agreement will help strengthen financial cooperation between Saudi Arabia and China, promote the use of local currencies, and strengthen trade and investments between the countries.
Currency swap agreements are financial contracts between two nations to exchange a predetermined amount of one currency for an equivalent value in another currency.
In December 2022, Chinese President Xi Jinping visited Saudi Arabia, during which both countries signed a Comprehensive Strategic Partnership Agreement, committing to support each other’s core interests, sovereignty and territorial integrity, and to defend the principle of non-interference in the internal affairs of states.
Xi’s meeting with Saudi Arabia’s King Salman, Crown Prince Mohammed bin Salman, and top Saudi ministers, resulted in the signing of 35 memorandums of understanding and deals worth $30 billion.
Building a shared future
In June, Saudi Arabia also hosted the Arab-China Business Conference under the theme “Collaborating for prosperity.”
During the conference, Saudi Foreign Minister Prince Faisal bin Farhan said that such events provide an opportunity to consolidate the historical Arab-China friendship, build a shared future that will benefit both sides and promote peace and development in the world.
Saudi Energy Minister Prince Abdulaziz bin Salman said that the Kingdom seeks collaboration with the world’s second-largest economy instead of competition.
Prince Abdulaziz emphasized there are synergies between the two countries, as the Kingdom is progressing steadily with its Vision 2030 plan, while China is pursuing its Belt and Road Initiative.
In September this year, Saudi Arabia and China signed a memorandum of understanding to exchange expertise in modern transport systems, including high-tech methods to enhance roads, build autonomous vehicles, and improve shipping and the running of ports.
In the same month, Saudi Arabia was officially granted Approved Destination Status by China, allowing Chinese citizens to travel to the Kingdom on group tours, a pivotal step in boosting tourism in the Kingdom.
The agreement is expected to boost connectivity between countries and open opportunities across the tourism sector.
In October 2023, Saudi Arabia’s Literature, Publishing, and Translation Commission also partnered with China’s National Press and Publishing Administration to promote literary translation.
Under this deal, both nations will work together to strengthen cultural ties, enhance content exchange and reinforce literary cooperation.
