LONDON: Saudi Arabia and China plan to establish a $20 billion investment fund as the Kingdom deepens ties with its biggest Asian oil customer.
King Salman met Chinese Vice Premier Zhang Gaoli in Jeddah on Thursday amid a flurry of deal-making between the countries, which are both pursuing economic transformation plans through Saudi Arabia’s Vision 2030 and China’s Belt and Road Initiative.
The pair plan to jointly operate the investment fund, sharing costs and profits on a 50:50 basis, Saudi Energy Minister Khalid Al-Falih told Reuters on Thursday.
He was speaking on the sidelines of an economic conference where senior officials and businessmen from both countries assembled.
Saudi Arabia is pursuing an aggressive international investment strategy spearheaded by the Public Investment Fund (PIF), which is taking multibillion-dollar stakes in companies such as Uber Technologies. The PIF is set to become the world’s largest fund when it receives the proceeds from the initial public offering (IPO) of Saudi Aramco.
“The key thing in this is the increasing economic relations between Saudi Arabia and China, which is its main customer for oil,” Jason Tuvey, an economist at London-based Capital Economics, told Arab News.
“It sees China as its main growth engine at a time when demand for oil in many developed markets is falling. Saudi Aramco will want to make sure it remains the ‘go to’ oil producer for China.”
The closer ties between China and Saudi Arabia may also extend to international debt markets if the Kingdom looks to add foreign bond sales denominated in yuan as well as dollars.
“One of our main objectives is to diversify the funding basis of Saudi Arabia,” Vice Minister of Economy and Planning Mohammed Al-Tuwaijri told the Jeddah conference, Reuters reported.
“We will do that through access to investors or bodies of liquidity in the markets. China is by far one of the top markets. We will also access other technical markets in terms of unique funding opportunities, private placements, panda bonds and others.”
Such overseas debt sales could not only help the country reduce its deficit but also fund job-creating investments at home.
Crown Prince Mohammed bin Salman is driving an ambitious economic diversification plan which aims to reduce the country’s dependence on oil and boost investment in new sectors.
He also co-chairs the high-level Saudi-Chinese Joint Committee with Zhang.
The first meeting of the committee was held in Beijing a year ago.
Saudi Arabia, China to set up $20bn investment fund
Saudi Arabia, China to set up $20bn investment fund
Saudi, Ireland foreign ministers discuss Gaza developments in Brussels
RIYADH: Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan on Monday met his Irish counterpart Micheal Martin in the Belgian capital, Brussels, to discuss developments in the situation in the Gaza Strip and the efforts made to solve the conflict.
During the meeting, they also discussed bilateral relations between their two countries and ways to strengthen and develop them in various fields, the Kingdom’s foreign ministry said.
The meeting was held on the sidelines of a meeting of the ministerial committee, headed by Prince Faisal, which was assigned by the Joint Arab-Islamic Extraordinary Summit with the EU’s Foreign Affairs Council in Brussels.
It also comes a day before Ireland, along with Spain and Norway, plan to make official their recognition of a Palestinian state.
Saudi industry minister begins official trip to Netherlands
- Bandar bin Ibrahim Alkhorayef’s visit seeks to strengthen ties in industrial, mining sectors
RIYADH: Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef traveled to the Netherlands on Monday for an official visit with the objective of strengthening cooperation in the industrial and mining sectors, Saudi Press Agency reported.
The visit aims to explore and expand joint investment opportunities between the two countries.
Alkhorayef is scheduled to meet with several Dutch ministers and senior government officials, along with key leaders from the private sector, to discuss collaboration in the industrial and mining sectors.
The minister’s itinerary will also include several visits to Dutch factories and companies operating within these sectors with the hopes of fostering collaborative ventures between private sector entities in both countries.
The visit underscores Saudi Arabia’s commitment to diversifying its economy and strengthening international ties, SPA added.
In 2023, the Kingdom’s non-oil exports to the Netherlands were valued at about SR2.6 billion ($706 million), while its non-oil imports from the Netherlands amounted to almost SR8.5 billion.
Arab Inter-Parliamentary Union praises Saudi Arabia’s ‘tremendous effort’ to support Palestinian cause
RIYADH: The Arab Inter-Parliamentary Union has praised the “tremendous efforts of Saudi Arabia, led by King Salman and Crown Prince Mohammed bin Salman, in supporting the Palestinian cause,” the Saudi Press Agency reported.
The AIPU released a final statement following the 36th Arab Parliamentary Union Conference, which ended on Monday in Algiers.
A Saudi delegation, headed by the chairman of the Shoura Council, Sheikh Abdullah Al Al-Sheikh, took part in the conference alongside heads of parliaments and councils, and several regional and international organizations and institutions.
During its sessions, the conference discussed developments in the Palestinian issue and the current situation in the Arab region.
The statement also praised the Kingdom’s hosting of a number of Arab, Islamic and African summits to support the Palestinian cause and put an end to the aggression against the Palestinian people.
On Yemen, the statement stressed the importance of the initiatives undertaken by the Kingdom, which call for constructive dialogue to achieve sustainable peace and a comprehensive political solution.
The conference endorsed the recommendations of the political committee, “which highly praised the pivotal and leading role played by Saudi Arabia, which has never hesitated in its significant achievements, contributions, initiatives, and authentic Arab stances aimed at unifying Arab ranks and elevating the status of the Arab and Islamic nations in all international forums,” SPA said.
The conference also praised the Kingdom’s hosting of Sudanese talks in Jeddah between the two conflicting parties to consolidate a truce and reach a final ceasefire agreement to end the crisis in a way that preserves Sudan’s sovereignty and unity and enables it to restore its security and stability.
Saudi economy minister holds talks with UN, OPEC officials in Austria
RIYADH: Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim on Monday met Executive Director of the UN Office in Vienna Ghada Waly in the Austrian capital, Vienna.
During the meeting, the two discussed “collaboration between the Kingdom and the UN on the Sustainable Development Goals and other topics of common interest,” the ministry said in a statement.
The meeting was held on the sidelines of the minister’s visit to Austria to participate in the ninth session of the Saudi-Austrian Joint Committee.
Al-Ibrahim also met Abdulhamid Alkhalifa, president of the OPEC Fund for International Development, to explore the fund’s upcoming initiatives.
He also held talks with Austrian Minister of Labor and Economy Martin Kocher on strengthening trade and economic cooperation between the two countries, and the latest developments of joint interest.
The meetings were attended by the Kingdom’s Ambassador to Austria Abdullah Tawlah.
Kuwait emir receives Saudi minister of state
Emir of Kuwait Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah received Saudi Minister of State Prince Turki bin Mohammed bin Fahd bin Abdulaziz and his accompanying delegation on Monday at Bayan Palace in Kuwait.
Prince Turki conveyed the greetings of King Salman and Crown Prince Mohammed bin Salman.
They reviewed the strong fraternal relations between their countries and ways to strengthen them across various fields.
The meeting was also attended by Saudi Ambassador to Kuwait Prince Sultan bin Saad bin Khalid and dignitaries from both sides.
