The world is in a state of constant and rapid change. Nowhere on the planet is this statement truer than in the Kingdom of Saudi Arabia. Once viewed as a closed, ultra-conservative society, the nation has undergone an unprecedented series of seismic changes that are set to catapult the country into new heights.
After several decades of relying on its abundant oil reserves, the Arabian Gulf’s largest economy has committed itself to sweeping, foundational reforms. Guided by Crown Prince Mohammed bin Salman’s Vision 2030, the changes are occurring simultaneously on various fronts, at a breakneck pace.
The recent initial public offering of Saudi Aramco in in the Saudi Stock Exchange stands as the cornerstone of the kingdom’s plans to open up the state-dominated economy and signal the arrival of a post-oil era.
“The IPO is a significant milestone in the history of the company and marks important progress towards delivering Saudi Vision 2030, the kingdom’s blueprint for sustained economic diversification and growth,” Aramco Chairman Yasir al-Rumayyan said in a statement in November. China is viewed as a welcome investor in the IPO.
Meanwhile, the launch of its new tourist electronic visa (e-visa) opens up the kingdom to visitors from 49 countries, including China. It comes at the heels of other major social changes, like the lifting of the ban on women driving, loosening up regulations on non-married couples sharing hotel rooms and the sharp rise in the number of concerts and sporting events.
While local Saudis are the first ones to benefit from such entertainment options, foreign visitors, particularly the Chinese, are warmly welcomed as guests. Foreigners are also encouraged to invest in what is essentially an industry in its infancy.
“Obviously the entire world is a target for us in terms of investing in the entertainment sector. That said, we see China as a very big player,” said General Entertainment Authority (GEA) CEO Faisal Barafat, whose organization has been tasked with building the Saudi entertainment industry from scratch.
“Chinese companies can take part in the direct and indirect supply chain of entertainment. For instance, there is a need for ticketing companies, as well as lighting, sound, staging, make-up, all the auxiliary products & support services,” he added.
In February 2019, Crown Prince Mohammed bin Salman visited China, Saudi Arabia’s largest trading partner, where he met with President Xi Jinping to map out a plan to integrate more closely his Saudi Vision 2030 with China’s Belt and Road Initiative.
The two leaders also agreed to include the Chinese language as a curriculum at all stages of education in schools and universities across the kingdom, a significant step forward as both countries celebrate the 30th anniversary of diplomatic relations in 2020.
This impact of the visit was further strengthened with the establishment of the China-Saudi Arabia high-level joint committee, which aims to enhance political trust and maintain the momentum and pragmatic cooperation in the fields of economy, trade, energy, science, technology, education and culture.
“Most Saudi companies have relationships with Chinese counterparts in some shape or form. There will always be a strong relationship between Chinese and Saudi businesses, and that is growing,” said Abdullah Al Khorayef, CEO of Al Khorayef Commerical, which distributes a wide range of top quality machinery imported from all around the world, including China.
As bilateral trade increased 32% last year, Saudi Arabia and China have signed around $28 billion in economic cooperation agreements so far this year, which includes a $10 billion joint venture between Aramco and Chinese conglomerate Norinco to develop a refining and petrochemical complex in Liaoning province.
Meanwhile, Saudi Arabia also welcomes Chinese manufacturers to capitalize on the kingdom’s strategic geographic position and contribute its evolution into the region’s premier industrial and logistics hub.
“Asia’s growth story is inspiring us. During transformations, there tends to be uncertainty. But there is also great opportunity. I encourage Chinese investors to leverage that,” said Saudi Industrial Development Fund CEO Ibrahim Aljomel, whose organization assists foreign businesses that want to operate in the kingdom.
