Saudi Arabia to deepen investment ties with China, build global value chains

Dr. Saad Al-Shahrani, Deputy Minister for Economic Affairs and Investment Studies at the Ministry of Investment, stated that "Saudi Arabia is moving to deepen its investment partnership with China by increasing mutual investments, enhancing industrial partnerships, and building value chains that serve the Kingdom, the region, and global markets."

Speaking at the Saudi-Chinese Strategic Investment Dialogue during the Select Financial Markets Forum in Shanghai, organized by Saudi Tadawul Group, Al-Shahrani said, "The next phase will focus on investment, construction, innovation, and shared growth."

He invited Chinese companies to take advantage of investment opportunities in the Kingdom and participate in building the next generation of industries, emphasizing that Saudi Arabia offers a unique investment destination combining stability and resilience with opportunities and growth.

Al-Shahrani reviewed the transformations in the Saudi economy since the launch of Vision 2030, noting that the economy has doubled in size over the past decade, domestic investment measured by gross fixed capital formation has also doubled, and the private sector's contribution to total domestic investment has increased significantly.

He pointed out that the stock of foreign direct investment in the Kingdom has doubled, inflows have increased nearly fivefold, and the number of foreign companies operating in Saudi Arabia has grown more than tenfold. This has coincided with a doubling of women's participation in the labor market and a 50% drop in the unemployment rate among Saudi citizens.

Al-Shahrani explained that "non-oil domestic investment accounts for about 40% of non-oil GDP, placing the Kingdom second among G20 countries after China," adding that the National Investment Strategy has exceeded its targets for both domestic and foreign investment every year since its launch.

He added that "Saudi Arabia has entered the list of the world's top ten countries in the Foreign Direct Investment Confidence Index," noting that investor confidence is reflected not only in new capital inflows but also in business expansion, reinvestment, and long-term investment commitments.

He stressed that "the Kingdom does not wait for investment opportunities but actively creates them," explaining that "Vision 2030 has not only improved the investment environment but also created new sectors and opportunities in tourism, mining, manufacturing, logistics, technology, the digital economy, and other emerging industries."

He noted that "investments have shifted from being a result of growth to becoming one of its main drivers, with the next phase focusing more on attracting higher-quality, more productive investments and moving from measuring investment by volume to measuring its economic impact."

He explained that "impact measurement includes the contribution of investments to GDP, increasing productivity, technology and knowledge transfer, creating quality jobs, opening new markets, and boosting exports."

Al-Shahrani concluded by reaffirming that the Kingdom invites Chinese companies not only to invest but also to help build the industries of the future in Saudi Arabia, the region, and worldwide.