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Abida Ahmad

Saudi Arabia Strengthens Industrial Cooperation with China and Singapore, Explores Localization of Advanced Automotive Technologies


Saudi Arabia’s economic mission to East Asia, led by Minister Bandar bin Ibrahim AlKhorayef, will visit China and Singapore from September 1 to 8, 2024, focusing on enhancing bilateral relations, attracting investments, and exploring joint ventures in the industrial sector.


The delegation will engage with key entities in Guangzhou and Hong Kong, including GAC Group, General Lithium, Huawei, and Cyberport, and will meet with high-level officials in Singapore, including the Deputy Prime Minister and various industry leaders.


The visit supports Saudi Vision 2030 by aiming to bolster partnerships in automotive and technology sectors, with a focus on Saudi Arabia’s growing role in electric vehicle manufacturing and advanced technology solutions.


Riyadh, August 01, 2024 – Saudi Arabia is gearing up for a pivotal economic mission to East Asia, led by Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef. This significant visit, scheduled from September 1 to 8, 2024, will encompass key destinations including China and Singapore. The primary goals of this diplomatic and economic tour are to bolster bilateral relations, attract substantial investments to Saudi Arabia, and explore collaborative opportunities in the industrial sector, aligning with the Kingdom’s broader Vision 2030 objectives.


During this tour, the delegation will visit prominent industrial hubs in China such as Guangzhou and Hong Kong. Guangzhou, a major industrial city, will host strategic meetings with influential entities including GAC Group, General Lithium, and Huawei. These meetings aim to foster partnerships and explore investment prospects in the automotive, lithium, and technology sectors. Hong Kong, a special administrative region of China, will see the delegation engage with top officials, including the CEO of Hong Kong and representatives from the Trade and Industry Department and the Innovation and Technology Bureau. Additionally, visits are planned to Hutchison Ports and discussions with the Federation of Hong Kong Industries (FHKI), Cyberport, and Johnson Electric to enhance cooperation and explore business opportunities.


In Singapore, the delegation’s agenda is equally ambitious. Meetings are scheduled with key figures such as the Deputy Prime Minister, the Minister of Trade and Industry, and the Minister of Manpower. The visit will also include discussions with A*STAR, the Singapore Manufacturing Federation (SMF), and a tour of Tuas Port, the world’s largest automated port. These engagements aim to tap into Singapore’s advanced technology, automation expertise, and successful industrial strategies.


Saudi Arabia and China share a robust strategic relationship that has flourished over more than 80 years, particularly accelerating in the past decade. With China being Saudi Arabia’s largest trading partner, bilateral trade exceeded $100 billion in 2023. Chinese investments in Saudi Arabia have been substantial, including $5.6 billion in automotive original equipment manufacturing, $5.26 billion in the minerals sector, and $4.26 billion in semiconductors. The cultural connection between the two nations is also growing, with Chinese language instruction recently introduced in Saudi schools.


Hong Kong, as a special administrative region, maintains strong economic ties with Saudi Arabia. In 2023, Saudi non-oil exports to Hong Kong amounted to approximately $267 million, covering minerals and medical devices, while imports from Hong Kong reached around $1.78 billion, including leather, textiles, and related products.


Singapore’s advanced and competitive economy is known for its innovative approaches to human capability development and technological advancement. This visit presents significant opportunities for joint ventures in technological solutions, automation, and the Fourth Industrial Revolution. Saudi Arabia’s “Future Factories” initiative aims to automate 4,000 factories, transitioning from labor-intensive methods to advanced industrial practices, enhancing production efficiency and competitiveness.


A key focus of Saudi Arabia’s national industry strategy is the automotive sector. The Kingdom’s automotive market is a regional leader, accounting for 40% of total sales in the Middle East and North Africa. Notably, Saudi Arabia recently licensed its first electric vehicle brand, Ceer, and opened its first electric vehicle factory, Lucid, with a goal of producing over 300,000 cars annually by 2030. Ceer, a joint venture between Taiwan’s Foxconn and the Saudi Public Investment Fund, has signed a $1.3 billion agreement to establish an electric vehicle manufacturing plant in King Abdullah Economic City, with production set to commence in 2025. This aligns with Saudi Arabia’s vision to become a key hub for innovative and eco-friendly automotive solutions.


In the technology and automation sectors, Saudi Arabia has made significant strides, gaining global recognition for its advancements. The visit will include meetings with global technology leaders like Huawei, focusing on smart solutions and leveraging technologies from the Fourth Industrial Revolution.


Saudi Arabia’s commitment to attracting high-quality investments spans 12 promising industrial sectors, including automotive, pharmaceuticals, and food. The Ministry of Industry and Mineral Resources has made considerable progress in refining the regulatory and legislative frameworks to support a competitive investment environment. With a youthful population, substantial government investment in education, and a strategic location, Saudi Arabia offers a compelling investment destination for companies from China and Singapore.


This visit is anticipated to result in fruitful partnerships that will strengthen bilateral relations, drive mutual growth through high-quality investments, and advance sustainable development and economic diversification in key industrial sectors.

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