Country Overview

Saudi Arabia, a country located in the Middle East, is world-renowned for its abundant oil resources and vast land area. With a territory covering 2.25 million square kilometers, it is one of the largest countries in the Middle East. According to the latest data, the population of the country is approximately 36.2 million, with the labor force accounting for over 70%, indicating strong consumer potential and market vitality.

The economic growth rate of Saudi Arabia has averaged 3.5% over the past decade, with a Gross Domestic Product (GDP) reaching 1,108 billion US dollars and a per capita GDP of 31,850 US dollars. Despite facing certain unemployment challenges, Saudi Arabia remains a popular destination for foreign direct investment, attracting 78.86 billion US dollars in 2022. In the World Bank's Ease of Doing Business ranking, Saudi Arabia is ranked 62nd, showing significant progress in improving its business environment.

In terms of foreign trade, the bilateral trade relationship between Saudi Arabia and China is particularly close. Since 2001, Saudi Arabia has been China's largest trading partner in the Middle East, and China has been Saudi Arabia's largest trading partner since 2013. In 2023, the bilateral trade volume between China and Saudi Arabia reached 107.23 billion US dollars, with Chinese exports amounting to 42.86 billion US dollars and imports amounting to 64.37 billion US dollars. From January to August 2024, the bilateral trade volume between China and Saudi Arabia was 70.87 billion US dollars, with Chinese exports at 31.79 billion US dollars and imports at 39.08 billion US dollars. In 2023, Chinese companies' non-financial direct investment in countries participating in the Belt and Road Initiative reached 224.09 billion yuan, a year-on-year increase of 28.4%.

Economic Structure and Business Environment

Saudi Arabia's economy has traditionally been dominated by the oil industry, which has long been the main source of the country's GDP and export revenue. As a significant player in the global oil industry, Saudi Arabia is rich in oil and gas resources, with proven crude oil reserves ranking second in the world and proven natural gas reserves ranking sixth. However, in response to the volatility of the global energy market and the demand for sustainable development, the Saudi government has actively promoted an economic diversification strategy through the launch of the "Vision 2030" plan, aiming to reduce dependence on oil and develop non-oil industries.

The core objectives of this vision are to stimulate the growth of the private sector, attract foreign direct investment, and increase the proportion of non-oil government revenue in the gross domestic product. The Saudi government plans to enhance the country's economic competitiveness by reforming the labor market, improving education and vocational training levels, and promoting digital transformation. At the same time, Saudi Arabia is committed to developing the tourism and entertainment industries to enrich the lives of its citizens and create new economic growth points. Additionally, by establishing special economic zones and free zones, and offering tax incentives and other measures, the country aims to attract more domestic and foreign investment. In terms of environment and sustainable development, Saudi Arabia is investing in renewable energy and clean technologies to address global climate change challenges. Social and cultural reforms are also an important part of the "Vision 2030," with the goal of improving the happiness and quality of life of its citizens. Overall, Saudi Arabia's "Vision 2030" aims to transform the country into a modern and diversified economy through a series of structural reforms and strategic investments, ensuring the long-term prosperity and global competitiveness of the nation.

Investment Environment

Saudi Arabia is actively improving its business and investment environment to attract more foreign direct investment. By implementing economic diversification policies, the country has reduced its dependence on the oil industry and encouraged investment in cutting-edge technology fields such as smart infrastructure, digital transformation, 5G, artificial intelligence, and the green economy. The government has introduced a range of incentives, including tax benefits, simplified visa procedures, and financial incentives, to promote the development of special economic zones and attract foreign direct investment. Saudi Arabia's tax system is relatively simple and is gradually evolving towards a more mature tax regime, offering tax incentives to support investment projects in specific areas. Investments in infrastructure construction are continuously increasing, with Saudi Arabia striving to become a major transportation and logistics hub connecting Asia, Europe, and Africa. In terms of digital infrastructure, the country has a high internet penetration rate and mobile internet penetration rate, providing favorable conditions for the development of the digital economy. Additionally, the Saudi government has relaxed restrictions on foreign investment and supports innovation and entrepreneurship, offering business accelerators and financing services to global entrepreneurs. Saudi Arabia's sovereign wealth fund invests globally to diversify assets and increase non-oil revenue, further promoting the modernization and internationalization of the national economy. These measures together have built a more open, efficient, and favorable business and investment environment, providing attractive investment opportunities for foreign investors and promoting economic growth and diversification in Saudi Arabia.

In recent years, Chinese enterprises have shown an increasing trend in investing in Saudi Arabia, with investment flows increasing from $0.1 billion in 2003 to $1.7 billion in 2021, and the total investment stock reaching $3.52 billion by the end of 2021. The fields of investment have expanded from traditional energy, real estate, and infrastructure to information technology, financial services, retail, and advanced manufacturing. In the field of energy exploration and processing, Chinese enterprises have particularly notable cooperation with Saudi Arabia, such as Saudi Aramco's acquisition of a 10% stake in China's Rongsheng Petrochemical and the investment by Jinko Energy in the world's largest solar power plant, Al Dhafra, in Abu Dhabi, United Arab Emirates, further deepening cooperation in the new energy field. Moreover, Chinese enterprises have shown international competitiveness in digital transformation, with Huawei Cloud, Tencent Cloud, and Alibaba Cloud cooperating with local telecom service providers, and Alibaba Group establishing a joint venture with Saudi Telecom to provide data storage services and solutions in Saudi Arabia. Chinese equity investment institutions are also actively participating in investments in Saudi Arabia's information technology and financial services industries. Overall, Chinese enterprises' investments in Saudi Arabia are moving towards diversification and in-depth cooperation, and it is expected that with the advancement of Saudi Arabia's economic diversification strategy and the further opening of the Chinese market, investments will continue to grow.

Customized Inspection Delegation

ARTxDIGI organizes Saudi Arabia-United Arab Emirates Middle East inspection teams, aiming to build a "China-Middle East" bilateral and multilateral business sustainable development platform. Under the overall national risk control, organized groups go overseas to integrate overseas resources and help Chinese enterprises achieve new growth in overseas business.

Our customized teams provide personalized business docking services according to your specific needs, including meetings and negotiations with local government agencies, industry leaders, and potential business partners. From itinerary planning to logistical support, we provide one-stop services to ensure your trip to the Middle East is smooth and worry-free, allowing you to fully focus on business inspections.

Join our Middle East customized outbound mission, and you will have a unique opportunity to explore the Middle East market in depth. Our professional team will guide you through this land full of business opportunities and gain insights into the regional economic pulse.