RIYADH: Nearly 90 percent of Chinese companies are planning to expand their operations in the Middle East, reflecting growing confidence in the region’s investment climate, according to a new PwC survey.
The report, based on a survey of 136 Chinese firms, found that Saudi Arabia and the UAE are the most popular destinations, with 84 percent and 79 percent of companies, respectively, planning investments there.
Financial performance in the region has also improved, with 40 percent of respondents now reporting profitable operations—a sharp rise since 2022—while only 15 percent reported losses.
About 44 percent of the firms have already formalized business plans, and over 60 percent expressed satisfaction with their regional investments.
Reflecting a strategic shift, 77 percent of respondents said they are moving from representative offices to full-scale operations with dedicated local entities.
“Chinese enterprises are no longer treating the Middle East as an exploratory market – it has become a strategic hub for global growth,” said Linda Cai, Inbound/Outbound Leader at PwC China.
Sectors attracting the most interest include digital technologies, artificial intelligence, biopharmaceuticals, and renewable energy—aligned with both Saudi Arabia’s Vision 2030 and China’s global innovation ambitions.
Saudi Arabia remains a key target due to its rapidly transforming economy and market potential, while the UAE continues to draw investors as a regional hub offering diverse economic opportunities.
Policy improvements remain a priority: 72 percent of firms are seeking tax incentives beyond free zones, and 74 percent are calling for greater transparency, stability, and efficiency in regional regulations.
“The Middle East is entering a transformative era, marked by diversification, innovation, and stronger global integration,” said Rami Nazer, clients and markets leader at PwC Middle East and PwC EMEA government and public sector leader. “The deepening commitment of Chinese companies signals a new phase in this economic transformation. By bringing expertise, investment, and long-term partnerships, Chinese enterprises are contributing to the region’s sustainable growth and prosperity, reinforcing its increasingly central role in global investment strategy.”
Aligned with China’s Belt and Road Initiative, the survey points to a growing trajectory of cooperation and investment expected to shape the future of Sino-Middle East economic relations.
Middle East emerges as key growth hub for Chinese firms: PwC survey
https://arab.news/vchzp
Middle East emerges as key growth hub for Chinese firms: PwC survey
Closing Bell: Saudi main index closes in red at 10,414
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Wednesday, shedding 38.85 points, or 0.37 percent, to finish at 10,414.06.
Total trading turnover on the benchmark index reached SR3.46 billion ($920 million), with 123 stocks advancing and 134 declining.
The Kingdom’s parallel market Nomu also shed 41.61 points, or 0.18 percent, to close at 23,428.67.
The MSCI Tadawul Index edged down 0.45 percent to 1,368.36.
Arabian Drilling Co. was the best-performing stock on the main market, with its share price rising 6.8 percent to SR102.90.
Naqi Water Co. gained 4.30 percent to SR58.25, while Saudi Ground Services Co. advanced 3.78 percent to SR38.42.
Tihama Advertising, Public Relations and Marketing Co. saw its share price fall 4.95 percent to SR16.31.
AlAhli REIT Fund 1 also declined 3.53 percent to SR6.29.
On the announcements front, United Mining Industries Co., listed on the parallel market, said it has begun commercial production of gypsum board at its plant in Yanbu.
In a Tadawul statement, the company said the financial impact of the project’s commercial production will be reflected in the first quarter of 2026.
United Mining Industries Co.’s share price was unchanged, closing at SR42.54.
Dkhoun National Trading Co. said its shareholders approved the board’s recommendation to distribute interim dividends on a semi-annual or quarterly basis for 2025.
According to a Tadawul statement, shareholders also approved transferring the balance of the company’s statutory reserve, valued at SR2.43 million, to retained earnings.
Dkhoun National Trading Co.’s shares saw no trades and closed at SR65.
