Saudi Arabia and China have recently signed housing deals, further strengthening the ties between the two countries. The partnership was finalized at the Saudi-China Business Forum, which took place in Beijing this week. Saudi’s Minister for Municipal, Rural Affairs and Housing, Majid bin Abdullah Al-Hogail attended the event and signed the agreement on behalf of Saudi Arabia.
The Saudi-China Business Forum focused on exploring investment prospects in various areas, including housing, urban infrastructure, real estate development, and financing.
Fruitful forum
During the forum, Al-Hogail extended an invitation to Chinese companies, urging them to consider investing in Saudi Arabia’s real estate sector.
According to the minister, 12 agreements and memorandums of understanding were signed. Among these are five housing deals worth over SAR5 bn ($1.33 bn).
On the sidelines, he also met with delegates from the Chinese state-owned investment conglomerate CITIC. They discussed construction projects in Saudi Arabia and the advancement of “green housing technology.”
In a social media post, the housing minister expressed his optimism for the deals while also extending his gratitude to the Chinese delegates for their warm hospitality and commitment to strengthening the two countries’ relations.
Read: A new modernized Silk Road between Saudi and China
Growing partnership
This year saw the growing partnership between Saudi Arabia and China, extending beyond real estate. In March, China played a mediating role in reestablishing the diplomatic relations between Saudi Arabia and Iran.
Meanwhile, the Saudi Arabia hosted the Arab-China Business Conference held in June. The conference generated $10 bn in deals, underscoring the flourishing economic ties between the two.
One of the notable deals arranged was the $5.6 bn joint venture between the Saudi Ministry of Investment and Chinese electric vehicle manufacturer Human Horizons. The entities teamed up to develop, manufacture, and sell vehicles.
Other key agreements involved constructing train carriages and producing chemicals, such as chloride and chlorine, in the kingdom.
Last month, petroleum refineries company Saudi Aramco obtained a $3.4 bn stake in China’s Rongsheng Petrochemical Co. Ltd. In 2022, Saudi Arabia emerged as the Asian giant’s top oil supplier.
While Russia overtook Saudi on this front according to more recent figures, China remains a vital focal point for Saudi Arabia’s exports. It remains the top export destination for Saudi, accounting for 14.8 percent of its total exports. This is equivalent to $4.15 bn.
When Chinese President Xi Jinping visited the kingdom in December, the two countries also inked multiple investment agreements amounting to an estimated $30 bn.
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