RIYADH: Saudi Arabia exported SR2.23 billion ($594 million) worth of non-oil goods in May, representing a 19.25 percent increase from the previous month, official data showed.
According to the General Authority for Statistics, China was the third largest destination for Saudi Arabia's non-oil products in May, after the UAE and China, which received goods worth SR6.06 billion and SR3.62 billion, respectively.
Strengthening the non-oil private sector and exporting those goods to countries like China is important for Saudi Arabia, as the kingdom continues its economic diversification journey by reducing its dependence on oil.
The report showed that China was also the top destination for Saudi Arabia's overall exports, with the kingdom sending outbound shipments amounting to SR15.91 billion.
In May, oil was the main export from Saudi Arabia to South Korea, with shipments totaling SR13.68 billion.
According to the latest figures, Saudi Arabia exported plastic and rubber products worth SR876.9 million to China, followed by chemical products for SR851.8 million.
In May, the state also exported a total of SR313.4 million of mineral products to China, while outgoing shipments of base minerals were SR103.7 million.
China was also Saudi Arabia's most important import partner in May, with inbound shipments from the Asian nation of SR17.55 billion, representing a 22 percent increase over April.
According to Gastat, after the United States and the UAE, China has imported goods worth 6.56 billion and 4.54 billion rupees, respectively.
The authority revealed that Saudi Arabia imported mechanical equipment and electrical parts worth SR8.23 billion 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 into the kingdom included antiques and artifacts worth SR961.8 million, followed by plastic products at SR806.7 million and textile goods at SR792.4 million.
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 strong bilateral ties for many years, with China becoming China's largest trading partner in the Middle East since 2001, and bilateral trade between the nations reaching $107.23 billion in 2023.
The state and China are strategic partners in various fields, including energy and finance, as well as the Belt and Road Initiative.
According to the Chinese government, one out of every six barrels of crude oil China imports comes from Saudi Arabia, while one Saudi Riyal out of every SR7 of the kingdom's export revenue comes from the Asian nation.
In May, Saudi Finance Minister Mohammad Al-Zadan said that the two countries have established positive cooperative communication within the framework of the China-Saudi High Level Economic and Financial Subcommittee on the high level of economic and trade cooperation between the two countries. Joint Committee.
Al-Zadan mentioned that the bilateral trade between the two countries has increased 31 times since 1990 and said that the outbound investment from China to Saudi Arabia has also increased rapidly in recent years, making the Asian country an important partner for the Arab countries. Its approach to economic transformation.
As diplomatic and economic relations between Saudi Arabia and China warm, the kingdom's central bank, also known as SAMA, and the People's Bank of China signed a local currency swap agreement worth SR26 billion ($6.93 billion) in November 2023.
After the agreement, Sama said that this agreement will help to strengthen economic cooperation between Saudi Arabia and China, promote the use of local currency and strengthen trade and investment between the countries.
Major developments
The first half of this year saw several major developments that could boost bilateral, economic and trade relations between Saudi Arabia and China.
Earlier this month, Saudi Arabia's sovereign wealth fund signed six deals worth $50 billion with top Chinese financial institutions to boost bilateral capital flows.
The Public Investment Fund has signed agreements with China Construction Bank, Agricultural Bank of China, China Export and Credit Insurance Corporation, Bank of China, Export-Import Bank of China and Industrial and Commercial Bank. Bank of China.
These agreements will focus on facilitating two-way capital flows between Saudi Arabia and China through both debt and equity, the statement said.
In the same month, Saudi Basic Industries Corporation signed a prospective investment agreement with China's Fujian government to develop an engineering thermoplastic compounding plant in the Asian nation.
In July, stock exchange ties between the two nations were further strengthened when two new exchange-traded funds focused on state stocks debuted in Shanghai and Shenzhen.
The first fund, CSOP Saudi Arabia ETF QDII, managed by China Southern Asset Management, raised $87 million and listed on the Shenzhen Stock Exchange.
A second fund, Huatai-PineBridge Managed CSOP Saudi Arabia ETF QDII, raised $82.32 million and began trading on the Shanghai Stock Exchange.
The debut of these ETFs on Chinese exchanges comes at a time when investor relations between the two nations continue to flourish, with China becoming the top greenfield foreign direct investor in the state with investments of $16.8 billion in 2023, representing a 1,020 percent increase compared to the previous year. Until the previous year.
With the implementation of the approved destination status system that came into force on July 1, China and Saudi Arabia are also deepening their relationship in the tourism sector.
The Chinese ADS policy is a bilateral agreement between countries that allows their citizens to travel in organized groups to specific foreign destinations for tourism purposes.
The decision to implement ADS is in line with Saudi Arabia's goal of bringing in 5 million Chinese tourists by 2030, with new direct flights from Air China, China Eastern, and China Southern alongside existing Saudi flights.
In June, the Saudi Tourism Authority and one of the kingdom's leading hospitality and real estate firms, Taiba Investments, also signed another agreement to develop an integrated residential ecosystem and an exclusive network of hotels catering to Chinese tourists.
In the same month, PIF-backed Riyadh Air signed an agreement with China Eastern Airlines to enhance future connectivity and collaborate on digital transformation, further strengthening its entry into the Chinese market.
Riyadh Air CEO Tony Douglas said at the time, “Our partnership with Air China, a leading global carrier with an extensive network in key Chinese markets, complements Riyadh Air's ambitious future plans.
The agreement also focuses on interline connectivity, codeshare arrangements, and potential cooperation in frequent flyer programs, as well as cargo services, customer experience, and digital innovation.
On the cultural front, Riyadh's King Abdulaziz Public Library implemented an initiative to introduce Saudi culture to Chinese-speaking audiences through its publication program in August.
As part of this program, a series of scientific, cultural and literary works in Arabic were selected for translation into various languages, including Chinese.
According to an official statement, the primary objective of this initiative is to present a comprehensive picture of contemporary Saudi culture to Chinese readers.
