DUBAI (HRNW) – Trade and investment ties between China and Gulf Arab states are expected to feature prominently in President Xi Jinping’s visit to Saudi Arabia this week as the region increasingly looks East to drive economic transformation at home for a post-oil era.
China, the world’s biggest energy consumer, is a major trade partner of Gulf oil and gas producers and while economic ties remain anchored by energy interests, bilateral relations have expanded under the region’s infrastructure and technology push.
Saudi Arabia is China’s top oil supplier, making up 18% of China’s total crude oil purchases, and state-run Saudi Aramco has annual supply deals with half a dozen Chinese refiners.
Riyadh has said that strengthening trade ties and regional security would be priorities during Xi’s visit, during which the kingdom will host a China-Gulf summit and a China-Arab summit that diplomats say will involve dozens of agreements and MOUs.
Outside energy, Gulf Cooperation Council (GCC) states provide markets for Chinese goods, construction contracts and investment opportunities in infrastructure, manufacturing and digital economies that fit Beijing’s Belt and Road Initiative.