The Kingdom of Saudi Arabia is set to embark on a significant economic visit to East Asia, led by Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef. The delegation will visit China and Singapore from September 1 to 8, 2024, with the objective of enhancing bilateral relations, attracting investments to Saudi Arabia, and exploring joint-venture opportunities in the industrial sector. The tour will include visits to advanced industrial hubs in China, such as Guangzhou and Hong Kong, one of its special administrative regions. This mission aligns with the ambitious goals of Saudi Vision 2030, which seeks to diversify the economy and establish the Kingdom as a global leader in industrial development. The delegation will participate in high-level strategic meetings with senior government officials from various ministries in China and Singapore and will meet with leading global companies in the automotive, automation, and technology sectors. Key meetings in Guangzhou will include discussions with GAC Group, General Lithium, and Huawei. In Hong Kong, the delegation will meet with the CEO of Hong Kong, the Trade and Industry Department, the Innovation and Technology Bureau, visit Hutchison Ports, and meet with the Federation of Hong Kong Industries (FHKI). Additionally, there will be meetings with Cyberport, a global leader in advanced technology solutions, and Johnson Electric, among other significant commercial and industrial companies. In Singapore, the agenda includes meetings with the Deputy Prime Minister, the Minister of Trade and Industry, and the Minister of Manpower, as well as discussions with A*STAR, the Singapore Manufacturing Federation (SMF), and a visit to Tuas Port, the largest automated port globally, along with other ministries and companies. Saudi Arabia has a robust strategic relationship with China that spans over 80 years, growing rapidly over the past decade across various economic, developmental, and cultural fields. China is the Kingdom's largest trading partner, with trade exceeding $100 billion in 2023. Chinese investments in Saudi Arabia in 2023 included $5.6 billion in original equipment manufacturing for automotive and $5.26 billion in the minerals sector, with semiconductor investments amounting to $4.26 billion. Additionally, there is significant cultural alignment between Saudi Arabia and China, highlighted by the introduction of Chinese language instruction in Saudi schools. Hong Kong, one of China's special administrative regions, also maintains strong economic ties with Saudi Arabia. In 2023, Saudi non-oil exports to Hong Kong reached approximately $267 million, including minerals and medical devices, while imports from Hong Kong were around $1.78 billion, mainly consisting of leather, textiles, and related products. On the other hand, Singapore is a highly advanced and competitive economy, known for its unique model in developing human capabilities and leveraging technology and automation in various sectors. This creates significant opportunities for joint investment between Saudi Arabia and Singapore in technological solutions, the Fourth Industrial Revolution, and industrial and logistical automation. The Kingdom's initiative "Future Factories" aims to automate 4,000 factories by transitioning from labor-intensive processes to operational efficiency and advanced industrial practices, enhancing production efficiency and competitiveness. The automotive sector is a key focus of Saudi Arabia's national industry strategy, which emphasizes its development and the incorporation of innovative technologies. The Saudi automotive market is significant in the region, with sales representing 40% of total sales in the Middle East and North Africa. Last year, the Kingdom granted a license to its first Saudi electric vehicle brand, Ceer, and opened its first electric vehicle factory, Lucid, targeting the production of over 300,000 cars annually by 2030. Furthermore, Ceer, a joint venture between Taiwan's Foxconn and the Saudi Public Investment Fund, signed a $1.3 billion a greement to build an electric vehicle manufacturer in King Abdullah Economic City, with production set to begin in 2025. The visit by the Ministry of Industry and Mineral Resources' delegation to China aligns with Saudi Arabia's objective to become a key automotive hub in the region and a leader in innovative, eco-friendly vehicle solutions. The Kingdom has also discussed cooperation with Chile, the world's second-largest lithium producer, to enhance lithium production for electric vehicle batteries. In the field of technology and automation, Saudi Arabia's tech advancements have gained global recognition, making significant leaps over the past decade. Efforts continue to transfer knowledge, innovation, and technological solutions across all sectors. The visit's agenda will include meetings with several leading global companies in automation and technology solutions, including a meeting with officials from the prominent Chinese company Huawei to discuss collaboration opportunities in innovative smart solu tions and to leverage technologies from the Fourth Industrial Revolution. Huawei, founded in 1987, is one of the world's largest companies and a leader in providing information and communication technology infrastructure and smart devices, with its products reaching markets in 170 countries worldwide. Saudi Arabia aims to attract high-quality investments in 12 promising industrial sectors, including automotive, pharmaceuticals, and food, supported by a stimulating investment environment. The Ministry of Industry and Mineral Resources has made significant strides in enhancing the industrial sector's regulatory and legislative frameworks to ensure a competitive investment environment, with various support mechanisms provided to ease business operations. Moreover, the Kingdom boasts a large proportion of youth, with two-thirds of the population under 30, a dynamic workforce supported by significant government investment in education and human development, and a strategic location with robust infrastructure a nd attractive investment incentives, making it a leading investment destination for Chinese and Singaporean companies. The visit is expected to result in partnerships that will strengthen bilateral relations, focusing on mutual growth through high-quality investments, sustainable development, and economic diversification, particularly in strategic industrial sectors. Source: Saudi Press Agency
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