Eastern Horizons

Jeddah, Saudi Arabia June 25, 2025

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How is the Middle East’s relationship with the Far East reshaping the global landscape?

From the ancient ‘silk road’ to today’s digital communication channels, the Far East shares a rich and storied history with the Middle East, North Africa, and Türkiye (MENAT) region. In recent decades, both have strengthened their ties, forging powerful economic and cultural partnerships across a wide range of sectors, from infrastructure and tourism to energy and defense.

How has Saudi Arabia’s relationship with China evolved?

Saudi Arabia has long held close ties with the United States and Western Europe. In the 1990s, recognizing the shift in global dynamics, the Kingdom began strengthening relationships with Asian countries such as Japan, South Korea, and, in particular, China. At the same time, China sought to cultivate stronger relations with the Arab world, especially following the launch of its global infrastructure development strategy, the Belt and Road Initiative (BRI), in 2013. In 2016, China published its ‘Arab Policy Paper,’ underscoring the historical, civilizational, and geo-economic reasons for deeper ties with Arab nations.^[1] Since then, the country has signed cooperation agreements with nearly all Arab states, with many becoming members of the Asian Infrastructure Investment Bank (AIIB).

Saudi Arabia’s influence in the Arab and Islamic world and its critical role in the global energy market make it a vital partner for China. Equally, China and other Asian countries help the Kingdom to diversify its foreign relations and support ambitious domestic economic reforms.

What are the key milestones in the Saudi-China relationship?

The first high-level state interactions between China and Saudi Arabia took place in 1999, when Chinese President Jiang Zemin visited Saudi Arabia, followed by King Abdullah’s visit to China in 2006.

Key milestones in the evolving relationship include:

1999: Chinese President Jiang Zemin visits Saudi Arabia.
2006: King Abdullah visits China.
2017: President Xi Jinping visits Saudi Arabia, and King Salman bin Abdulaziz Al Saud visits China.
2019: Crown Prince Mohammed bin Salman visits China.
2022: President Xi Jinping visits Saudi Arabia.

King Salman’s 2017 visit to China marked an expansion of bilateral cooperation, particularly in political, security, military, economic, and infrastructure projects. Similarly, Xi Jinping’s visits in 2016 and 2022 were pivotal in establishing comprehensive strategic partnerships across multiple sectors, including trade, culture, tourism, technology, and energy.

During Xi’s 2016 visit, the Sino-Saudi High-Level Joint Committee (HLJC) was formed, focusing on economic and strategic collaboration, with about US$ 30 billion in deals signed between the two countries.^[2] In 2017, the second HLJC meeting led to the creation of a joint investment fund and the ‘Saudi Silk Road Company for Industrial Services,’ aimed at boosting investment in Saudi Arabia’s Jizan Province.

In 2022, three milestone summits were held: the Saudi-Chinese Summit, the first China-Gulf Cooperation Council (GCC) Summit, and the first Arab-Chinese Summit. These summits reinforced Saudi Arabia’s role as China’s gateway to the Middle East and North Africa (MENA) region. They also laid the foundation for deeper cooperation in areas such as energy, investment, education, and cultural exchanges.

The alignment of the BRI with Saudi Vision 2030 continues to drive these efforts, emphasizing trade, infrastructure development, and people-to-people connections, particularly through tourism and cultural exchange.

How do Saudi Arabia’s ties with China affect trade and the economy?

Saudi Arabia and China have close economic ties and significant influence on the regional and global stage. Both are members of the World Trade Organization, the G20, and other internal economic organizations and blocs, including the Asian Infrastructure Investment Bank (AIIB).

Saudi Arabia was China’s first trading partner in the MENAT region.^[3] Since 2001, the Kingdom has been China’s largest trading partner in the Middle East and now accounts for more than 35% of China’s trade with the GCC.^[4] As of 2013, China became Saudi Arabia’s top trading partner overall.^[5]

Accordingly, trade between Saudi Arabia and China has increased dramatically – from US$ 417 billion in 1990 to US$ 107 billion in 2023.^[6] The total volume of trade during 2019-2023 exceeded US$ 419 billion.^[7]

China is the largest importer of Saudi crude oil. In 2022, hydrocarbons accounted for nearly US$ 66 billion of the total US$ 78 billion Saudi exports to China. Chinese exports to Saudi Arabia comprise mainly consumer goods (50%), with machine machines, electronic products, metals, textiles, and clothing making up the remainder.^[8]

China’s support of Saudi Vision 2030 led to a surge in investment from 2016 onwards. From 2005 to June 2024, China invested US$ 54 billion in Saudi infrastructure projects. Most of this was allocated between 2016 and 2024. China spent a total of US$ 14 billion in Saudi Arabia during this time – US$ 9 billion of which was spent from 2019 to 2024.^[9]

In 2019, the countries signed thirty-five economic cooperation agreements worth US$ 28 billion.^[10] These spanned renewable energy, manufacturing, wind turbine structures, turbine blades, and wind generators, and licensing Chinese companies to operate in Riyadh. More deals totaling US$ 30 billion followed in 2022, focusing on green energy, cloud infrastructure and other digital technology, transport, construction, and more.^[11]

Nearly 750 Chinese companies now operate in Saudi markets, including construction, energy, and petrochemicals.^[12] Likewise, Saudi Arabia has several investments in China, particularly in the energy and petrochemical sectors. In August 2024, the Public Investment Fund (PIF) signed a memorandum of understanding (MoU) with six Chinese financial institutions worth US$ 50 billion.^[13]

How has Jameel Motors expanded with China?

Recently, Abdul Latif Jameel marked the 25th anniversary of our entry into the Chinese automotive market. Our involvement in China began in 1998 with the establishment of our Chinese automotive business in Chengdu, (today Jameel Motors China), with Toyota and Lexus vehicles. Since then, our strategic focus in China has evolved with the rapid rise of New Energy Vehicles (NEVs), with plans for further growth in the future. In 2024, Jameel Motors signed an agreement with Zhejiang Geely Farizon New Energy Commercial Vehicle Group, a leader in new energy commercial vehicles in China, greenlighting the distribution of Farizon Auto NEVs across 11 countries with a combined population of over 450 million.^[14] We also have strong and growing links with several other fast-growing Chinese automotive brands, including BYD, MG Motor, GAC Motor, Changan, and Geely Auto passenger vehicles – and in October 2024 we opened a new corporate office in Shenzhen, China.

The Farizon SV all-electric van being put through it paces at the Millbrook Proving Ground, UK. Image Credit: Jameel Motors.

Which industry sectors have seen closer links between Saudi Arabia and China?

Saudi Arabia, China, and other Arab nations are engaged in large-scale, wide-ranging construction projects across the MENAT region – establishing valuable utilities and commercial and cultural infrastructure that underpin further economic development and collaboration. From a host of dams built in Sudan over the last couple of decades to the Jazan Industrial Cluster, a joint China-Saudi Arabia project within Jazan Economic City, and the newly launched Djamaa El Djazair mosque in Algeria – the Far East is rising across the skylines of the region.

Meanwhile, digital infrastructure is working behind the scenes to modernize business and communications. Several Chinese firms, including Huawei, Alibaba, and Tencent, are increasing their presence in the UAE, Saudi Arabia, Egypt, and beyond to help power the region’s demand for smart cities, cloud computing, e-commerce platforms, and next-generation 5G networks.^[15]

Energy is a major area of strategic interest for China and the GCC (Gulf Cooperation Council) nations, which boast 45% of the world’s proven oil reserves and 25% of crude oil exports.^[16] No wonder. China is the GCC’s largest trading partner and biggest export market for petrochemical products – importing 40% of its oil from Arab countries.

China and Saudi Arabia have several collaborations in place to secure their energy futures. Saudi Aramco, for instance, has a longstanding partnership with Sinopec in the Yanbu Aramco Sinopec Refining Company (YASREF) and recently acquired a US$ 3.4 billion stake in China’s Rongsheng Petrochemical Co. Ltd.^[17]

It’s not all about the oil, though. As part of Vision 2030, Saudi Arabia plans to generate 50% of its electricity from renewable sources by 2030. And the Far East is helping to make it a reality. Numerous green energy projects and collaborations have been launched in recent years, ranging from a US$ 2 billion solar and carbon black integrated complex in partnership with a South Korean firm, to China’s Silk Road Fund helping to develop more than over 12 GW of solar assets in the Kingdom alongside solar and wind projects in the UAE, South Africa, Jordan, Egypt, and Morocco.^[18]^,[19]

Tourism is another major source of wealth generation, and China, as the world’s largest source of outbound tourists, is a prime target. Saudi Arabia has set a target to attract 5 million Chinese visitors annually by 2030, making China the third-largest source of the nation’s tourists.^[20]

The Kingdom has made it easier for Chinese citizens to secure visas while Saudi Arabian Airlines launched direct flights to China in 2023 to bolster connectivity between the two nations. In the same year, the Saudi Tourism Authority held its first international promotional campaign in Shanghai, reaching 500 million Chinese people and attracting 80,000 attendees.^[21] Following suit, China granted Saudi Arabia Approved Destination Status for Chinese group tours. Many Chinese travel agencies now offer Saudi tour packages – in the first half of 2024 alone, more than 100,000 Chinese tourists visited, marking a 29% year-on-year growth.^[22]^,[23] This surge in travel represents a significant influx of revenue and further reinforces cultural ties between the two nations.

How have cultural relations developed between China and Saudi Arabia?

Vision 2030 seeks to showcase Saudi Arabia’s heritage, values, and soft power on the global stage. China strongly endorses the Kingdom’s cultural aspirations, not least as a way to nurture continued alignment. In recent years, the two nations have launched libraries, cultural institutions, visual arts, performing arts, theater, architecture, design, and traditional crafts.

Education is a key focus. The opening of the King Abdulaziz Public Library at Peking University in 2017 marked a major milestone, providing the largest Arab platform in China.^[24] In 2019, Saudi Arabia announced the introduction of Mandarin into Saudi schools at all levels – marking a shift from the longstanding policy of teaching only one language.^[25]

China reciprocated by expanding the teaching of Arabic.^[26] Meanwhile, both countries are encouraging student exchanges, with growing numbers of Saudi undergraduates opting to study in China and vice versa.

The students of today are the investors, innovators and entrepreneurs of tomorrow – many will now regard Sino-Saudi cooperation as the norm.

What other MENAT countries are enhancing their ties with the Far East?

China and Saudi Arabia are not the only two countries in their regions looking to bolster their relationship and establish closer ties. Saudi Arabia and Japan, for example, share a strong partnership in energy, particularly in oil and gas, with Japan sourcing 40% of its crude oil imports from the Kingdom.^[27] Japanese companies also play a significant role in petrochemical projects in Saudi Arabia, such as the Petro Rabigh venture, a collaboration between Saudi Aramco and Sumitomo Chemical.^[28]

Japan has been an important partner in Saudi Arabia’s Vision 2030, contributing expertise in technology and innovation, including robotics, AI, and renewable energy.^[29] In 2022, both countries signed agreements on clean energy, including a focus on ammonia and carbon recycling, aiming for net-zero carbon emissions by 2050 in Japan and 2060 in Saudi Arabia.^[30]

Japanese companies are involved in major infrastructure projects in the Kingdom, such as the development of high-speed rail systems, including the Haramain High-Speed Railway, connecting Makkah, Medina, Jeddah, and King Abdullah Economic City.

Japanese investment also plays a pivotal role in Egypt’s infrastructure development, with significant contributions to projects like the Cairo metro system. In 2022, Japan’s International Cooperation Agency (JICA) signed an agreement with Egypt for the first phase of Cairo Metro Line 4, highlighting Japan’s ongoing commitment to modernizing Egypt’s transport and infrastructure.^[31] Trade between the two countries is substantial, with Japan exporting vehicles, machinery, and electronics to Egypt, while Egypt exports oil, natural gas, and agricultural products to Japan.^[32]

Abdul Latif Jameel itself has enjoyed exceptionally strong links with Japan since the business was founded 80 years ago, especially through our long-standing partnership with Toyota of over 70 years. This relationship has helped us play a key role in driving the development and popularity of new, sustainable models of automotive mobility in the MENAT region, such as the comprehensive Toyota and Lexus hybrid vehicles and hydrogen-powered vehicles.

As well as passenger vehicles, we have expanded our partnership into other areas of transportation such as commercial vehicles, equipment and logistics, collaborating with other Far Eastern brands including Hino Trucks, Toyota Materials Handling, Komatsu mining and construction solutions, and a range of power generation solutions serving the construction sector.

In 2024, we opened a new office in Tokyo Midtown Yaesu, Japan, and also in Shenzhen China, reinforcing our commitment to expanding collaborations with existing and future business partners.

Another fast-growing Far Eastern economy, South Korea, is also strengthening its links in the MENAT region. The UAE is South Korea’s second-largest trading partner in the Gulf region.^[33]South Korea has been integral to the UAE’s energy sector, notably contributing to the development of the Barakah Nuclear Power Plant, the first of its kind in the Arab world, built by Korea Electric Power Corporation (KEPCO).^[34]

South Korea also has a strong history of collaboration with Türkiye, including major infrastructure projects such as the 1915 Canakkale Bridge, the world’s longest suspension bridge, built by South Korean companies.^[35] In addition, the two nations have deepened their ties in defense, with South Korea supplying defense technology to Türkiye, while Türkiye exports textiles and automotive parts to South Korea.^[36] As well as trade, the countries have explored joint ventures in renewable energy, particularly wind and solar power projects. Turkey’s largest solar power plant, for example, was developed in partnership with Kalyon Holding and South Korea’s Hanwha.^[37]

What does the future hold for MENAT/Far East relationships?

With China firmly established as one of the world’s preeminent economic superpowers, and the Far East one of its most vibrant regional economies, it makes perfect sense for MENAT countries to double down on their strategic and economic alliances. If recent years are anything to go by, interactions between MENAT, China, and other Far East countries will further bolster the prosperity and political influence of all concerned and cement an enduring, collaborative future for two of the world’s most dynamic regions.

^[1] The State Council, People’s Republic of China, “China’s Arab Policy Paper,” January 13, 2016.

^[2] “Saudi Arabia, China Emerge as Comprehensive Strategic Partners as Chinese President Xi Jinping Wraps up State Visit,” Arab News, December 10, 2022

^[3] https://www.chinadailyhk.com/hk/article/304514

^[4] https://www.chinadaily.com.cn/a/202410/29/WS672016faa310f1265a1ca100.html

^[5] https://www.chinadaily.com.cn/a/202410/29/WS672016faa310f1265a1ca100.html

^[6] https://www.arabnews.com/node/2274256

^[7] https://embassies.mofa.gov.sa/sites/China/EN/AboutHostingCountry/SaudiRelations/Pages/default.aspx

^[8] World Bank, “China Product Exports and Imports to Saudi Arabia 2022.”

^[9] https://www.aei.org/china-global-investment-tracker/

^[10] https://www.reuters.com/article/business/saudi-china-sign-28-billion-worth-of-economic-accords-spa-idUSKCN1QB1EU/

^[11] https://www.reuters.com/world/chinas-xi-starts-epoch-making-saudi-visit-deepen-economic-strategic-ties-2022-12-07/

^[12] Hu Weijia, China-Saudi Arabia Investment Cooperation Strengthening Amid Global Uncertainties,” Global Times, November 26, 2024.