Chinese business in Saudi Arabia

by | Mar 24, 2021 | Chinese business in Saudi Arabia

March 24, 2021

Saudi Arabia is a posed as a regional business hub in the Middle Eastern region. The Kingdom prides of an avalanche of natural resources including Oil and Gas which propels their economy. The development record of the Kingdom has continually attracted investors world over to invest and do business within the kingdom. Some of the investors who have engaged in business with the Kingdom of Saudi Arabia include the People’s Republic of China. In the past, the Kingdom of Saudi Arabia has been under strict observance and guidelines of their laws which have somewhat restricted the business space hence limiting the ability of external investors. However, today, the Kingdom has put in place flexible reforms that have expanded the business space enticing to investors. Some of the reforms that encourage Chinese business in Saudi Arabia is the establishment of elaborate dispute resolution mechanisms such as arbitration centers, special commission courts, advanced insolvency regulations and improving laws governing minority interests.

Chinese business in Saudi Arabia has been aided by the establishment and operation of the Saudi Arabian General Investment Authority, a body charged the responsibility of marketing the kingdom’s investment opportunities into the international market. Chinese business with Saudi Arabia can be felt in key sectors of the Kingdom’s economy including; manufacturing, renewable energy, petrochemical and mining which have seen continued growth of Chinese companies within Saudi Arabia.

Chinese business in Saudi Arabia is also propelled by the similarity in their development initiatives. For instance, Saudi Arabia has centered its development goals around their vision 2030 wherefrom all trade partners and investors should align their businesses. On the other hand, Chinese development agenda is anchored in their Belt and Road initiative which is a development oriented quest across all spheres of the economy. As a result, Chinese business in Saudi Arabia has profound political goodwill from both the Kingdom and the People’s Republic of China.

In addition, Chinese business in Saudi Arabia is aided by the cordial partnership between the two trading partners. It is well known that The People’s Republic of China is the biggest importer of Saudi Arabia’s oil products. It is on the basis of Chinese business in Saudi Arabia that China has direct interest in maintaining good relations in the Kingdom. For instance, China has fronted their willingness to assist Saudi tackle the challenge of Covid-19 that is currently ravaging the world. President Xi Jinping of china assured Saudi King Salman bin Abdulaziz Al Saud in a communique of their assistance in the health department to handle Covid-19 as well as develop a vaccine for the virus.

Chinese people are quite determined on business and development agenda, it is for this reason that Chinese business in Saudi Arabia is fast growing and in the process of improving and maintaining the relationship between the two countries. This rapid growth has equally influenced the socio-cultural interactions between the countries. Saudi has established language centers besides training interpreters to mitigate the challenge of language burrier hence allowing for easy flow of information. A mutually beneficial relationship such as the Chinese business in Saudi Arabia is pillar of prosperity and stability for the countries.

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