RIYADH: Saudi Arabia exported SR2.23 billion ($594 million) worth of non-oil goods in May, up 19.25 percent from the previous month, official data showed.
According to the General Statistics Office, China was the third largest destination for Saudi Arabia's non-oil products in May, behind the UAE and China, which received goods worth SR6.06 billion and SR3.62 billion, respectively.
Strengthening the non-oil private sector and exporting these goods to countries such as China is crucial for Saudi Arabia as the kingdom continues its path of economic diversification by reducing its dependence on oil.
The report revealed that China was also the top destination for Saudi Arabia's total exports, with the kingdom sending outbound shipments worth SR15.91 billion.
In May, crude oil was the main export from Saudi Arabia to South Korea, with total shipments of SR 13.68 billion.
According to the latest data, Saudi Arabia exported SR876.9 million worth of plastic and rubber products to China, followed by SR851.8 million worth of chemical products.
In May, the kingdom also exported mineral products totaling SR313.4 million to China, while outbound shipments of basic minerals totaled SR103.7 million.
China was also Saudi Arabia's most important import partner in May, with inbound shipments from the Asian country reaching SR17.55 billion, up 22 percent compared to April.
According to GASTAT, China was followed by the US and the United Arab Emirates, with the kingdom importing SR6.56 billion and SR4.54 billion worth of goods from these countries.
The authority revealed that Saudi Arabia imported SR8.23 billion worth of mechanical equipment and electrical parts from China in May.
The Kingdom also imported transport equipment and base metals worth SR 2.68 billion and SR 1.61 billion respectively in May.
Chinese imports to the kingdom also included SR961.8 million worth of antiques and works of art, followed by SR806.7 million worth of plastic products and SR792.4 million worth of textile goods.
In May, Saudi Arabia also imported chemical products worth SR479.5 million, while the kingdom also received inbound shipments of leather, fur and handbags from China worth SR118.4 million.
A blossoming relationship
Saudi Arabia and China have shared a strong bilateral relationship for several years, with the kingdom being China's largest trading partner in the Middle East since 2001, with bilateral trade between the nations reaching US$107.23 billion in 2023.
The Kingdom and China are strategic partners in various sectors, including energy and finance, as well as the Belt and Road Initiative.
According to the Chinese government, one in six barrels of crude oil imported by China comes from Saudi Arabia, while every Saudi riyal in every SR7 of the kingdom's export earnings comes from the Asian country.
In May, Saudi Arabia's Finance Minister Mohammed Al-Jadaan praised the economic and trade cooperation between the two countries, saying that the two countries maintain positive cooperation under the high-level economic and financial subcommittee of the China-Saudi Joint Committee.
Al-Jadaan also noted that bilateral trade between the two countries has increased 31 times since 1990, adding that China's outbound investment in Saudi Arabia has also been growing rapidly in recent years, making the Asian nation an important partner for the Arab country to she realized. his vision of economic transformation.
As diplomatic and economic relations between Saudi Arabia and China prosper, the Kingdom's Central Bank, also known as SAMA, and the People's Bank of China signed a SR26 billion (US$6.93 billion) local currency swap agreement in November 2023 .
After the agreement, SAMA said the deal will help strengthen financial cooperation between Saudi Arabia and China, promote the use of local currencies and boost trade and investment between the countries.
Major developments
The first half of this year witnessed several significant events that could strengthen bilateral, economic and trade relations between Saudi Arabia and China.
Earlier this month, Saudi Arabia's sovereign wealth fund signed six agreements worth US$50 billion with leading Chinese financial institutions to boost bilateral capital flows.
The public investment fund said in a press statement that it has signed memorandums of understanding with China Construction Bank, Agricultural Bank of China, China Export and Credit Insurance Corp., Bank of China, Export-Import Bank of China and Industrial and Commercial. Bank of China.
According to the statement, these agreements will focus on facilitating two-way capital flows through both debt and equity between Saudi Arabia and China.
In the same month, Saudi Basic Industries Corp. has signed a potential investment deal with the Fujian government in China to build a thermoplastic manufacturing technology plant in the Asian country.
In July, the stock market relationship between the two nations was further strengthened when two new exchange-traded funds targeting the kingdom's stocks debuted in Shanghai and Shenzhen.
The first fund, CSOP Saudi Arabia ETF QDII, managed by China Southern Asset Management, is listed on the Shenzhen Stock Exchange after raising $87 million.
A second fund, the Huatai-PineBridge managed CSOP Saudi Arabia ETF QDII, began trading on the Shanghai Stock Exchange after raising $82.32 million.
The debut of these ETFs on Chinese exchanges comes as investor relations between the two nations continue to flourish, with China becoming the kingdom's largest greenfield foreign direct investor with investments of $16.8 billion in 2023, an increase by 1,020 percent compared to the previous year.
China and Saudi Arabia are also deepening their ties in the tourism industry with the introduction of an approved destination status arrangement that came into effect on July 1.
China's ADS policy is a bilateral agreement between countries that allows its citizens to travel to specific overseas destinations for tourism in organized groups.
The decision to introduce ADS is in line with Saudi Arabia's goal of attracting 5 million Chinese tourists by 2030, with new direct flights from Air China, China Eastern and China Southern, in addition to Saudi Arabia's existing flights.
In June, the Saudi Tourism Authority and Taiba Investments, a major hospitality and real estate firm in the kingdom, also signed another agreement to develop integrated residential ecosystems and a specialized hotel network for Chinese tourists.
In the same month, PIF-backed Riyadh Air signed an agreement with China Eastern Airlines to strengthen future connectivity and digital transformation cooperation, further cementing its entry into the Chinese market.
“Our partnership with Air China, a world-leading carrier with an extensive network in key Chinese markets, complements Riyadh Air's ambitious plans for the future,” Tony Douglas, chief executive of Riyadh Air, said at the time.
The agreement also focuses on inter-line connectivity, code-sharing arrangements and potential collaboration on frequent flyer programs, as well as cargo services, customer experience and digital innovation.
On the cultural front, the King Abdulaziz Public Library in Riyadh implemented an initiative in August to introduce Saudi culture to Chinese-speaking audiences through its publishing program.
Under this program, a number of scientific, cultural and literary works in Arabic were selected for translation into various languages, including Chinese.
According to an official statement, the primary purpose of this initiative is to present a comprehensive portrait of contemporary Saudi culture to Chinese readers.
