Royal trip spells out vision of peace and partnership

RIYADH: Deputy Crown Prince Mohammed bin Salman’s visit to China, Japan and Pakistan is a reconfirmation of the highly commendable role played by Saudi Arabia at the international level, with three major components in its foreign policy— peace, partnership and business diplomacy.

Prince Mohammed, who is also the defense minister, has flown to the three powerful Asian nations with a view to strengthen relations with them.
The prince will be traveling later this week to attend the G-20 summit in China, which is being held this year in a difficult and complicated political and economic situation facing the world in general, and the Middle East in particular.
Prince Mohammed will undoubtedly contribute quality and content to the G-20 deliberations, when he will spell out his vision for peace, security, partnership and above all, business within the framework of his economic reform drive.
The prince has already conveyed the concerns of the Arab world to the leaders of Pakistan and China. He will do the same in Japan today. The royal visit is part of a broad and ambitious reform drive championed by the prince to cut the Kingdom’s reliance on petroleum exports, and showcase Saudi Arabia as a dynamic destination for business, investment and diverse opportunities for all.
But Prince Mohammed, who has left no stone unturned to reshape the Saudi economy, is equally conscious of the turmoil in the Middle East, which has been hampering efforts to promote trade and investment. Prince Mohammed, in his talks with top Chinese officials, covered the whole range of bilateral, regional and international issues. His talks with China’s Vice Premier Zhang Gaoli on Tuesday, were candid and substantial, which will also go a long way in promoting peace and security in the Middle East, and in its extended neighborhood.
During the visit of Prince Mohammed to China, a raft of 15 memorandums of understanding were signed between the two nations in different fields including oil storage, water resources, cooperation in science and technology and culture. These agreements were in different sectors, ranging from energy to housing, with the aim to bolster relations with the Kingdom’s top energy customer and trade partner.
On Tuesday, Saudi Arabia and Chinese governments signed these MoUs, among which one in the energy sector and another in storing crude oil are of great importance. The MoU on oil storage is the most prominent given that Saudi Arabia had never stored oil in China before. Saudi Arabia currently owns three storage sites, namely Okinawa in Japan, Sidi Krir in Egypt, and Rotterdam in Holland. The Kingdom used to have another storage site in the Bahamas, but that was closed several years ago.
The accords in oil sector with China will help Saudi Aramco, especially in terms of lending more ability to market Aramco oil in China. According to analyst Mohammed Al-Ramadi, such plans in the energy sector are very important to supply the demand of quick and sudden shipments. No doubt, Saudi Aramco has been able to build strong relations with China, and the sales of Aramco oil increased drastically in the case of China. This augurs well for the stronger energy ties between Riyadh and Beijing at a time when the Kingdom's Vision 2030 puts a strong emphasis on partnerships.
Most of the accords signed between the Kingdom and China are within the framework of the Vision 2030, which was launched by the prince in April this year with an aim to develop non-oil industries in Saudi Arabia and attract billions of dollars of foreign investment. Also, Chinese and Japanese banks and companies are expected to play major roles by working closely with Saudi institutions, as well as government agencies.
Top Saudi officials, who are accompanying Prince Mohammed have had talks with major Chinese and Japanese banks on a number of bilateral economic issues, including on the sale of a 5 percent stake in Saudi Aramco. Prince Mohammed, who will be in Japan for four days from Aug. 31, will also be holding talks with high-ranking Japanese officials on all issues of common concern.
From Japan, the prince will return to China again to chair Saudi Arabia’s delegation to the Sept. 4-5 summit of leaders of the world’s 20 biggest economies in the eastern city of Hangzhou. A source familiar with the trip said Prince Mohammed, at the G-20 summit, will present his economic reform plan, which envisages state spending of around SR270 billion in the next five years on projects to diversify the economy.
Referring to the visit of the prince to Japan, a report said that “the Kingdom and Japan will review the strategic relationships and future opportunities to enhance the existing partnership.”
The visit to Japan is part of a broad reform drive championed by the prince to cut the Kingdom’s reliance on oil exports and showcase Saudi Arabia as a dynamic nation with diverse opportunities for business and especially for investors from around the world.