Saudi Arabia and China are expected to sign deals worth about $30 billion ahead of a summit with Arab leaders.
Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS) has welcomed Chinese President Xi Jinping in Riyadh as part of a visit expected to boost political and economic ties.
Xi was greeted by MBS on Thursday at Yamamah Palace, where the world’s largest oil exporter is expected to sign about $30bn in deals, according to Saudi media.
The two leaders stood aside while the brass band played the national anthem, and then talked as they entered the palace, which is the palace and seat of the royal palace.
After Xi arrived on Wednesday, with airliners flying overhead, Saudi media announced 34 economic deals in sectors including green hydrogen, information technology, transport and infrastructure.
Officials at the Saudi Press Agency did not give details but said bilateral trade reached 304 billion Saudi riyals ($80bn) in 2021 and 103 billion Saudi riyals ($27bn) in the third quarter of 2022.
State broadcaster Al Ekhbariya said another 20 contracts worth 110 billion riyals ($29.3bn) were to be signed on Thursday.
Arab leaders also began gathering in the Saudi capital ahead of a meeting with Xi, who will hold separate talks with six members of the Gulf Cooperation Council (GCC) before departing on Friday.
Egyptian President Abdel Fattah al-Sisi, Tunisian President Kais Saied, Palestinian President Mahmoud Abbas and Sudanese leader Abdel Fattah al-Burhan all flew in on Thursday.
Iraqi Prime Minister Mohammed Shia al-Sudani, Moroccan Prime Minister Aziz Akhannouch and Lebanese Prime Minister Najib Mikati have also confirmed their presence.
China’s growing influence
China’s Foreign Ministry this week described Xi’s visit – his third overseas trip since the outbreak of the COVID-19 pandemic – as the “biggest engagement between China and the Arab world” since the founding of the People’s Republic of China.
China, a major user of Saudi oil, is looking to shore up its economy hit by the COVID-19 pandemic and strengthen ties with a region that has long relied on the United States for military protection.
The Saudis are pushing to diversify their economic and political ties at a time when relations with their long-standing US ally appear to be plagued by disagreements over energy policy, US security guarantees and human rights.
Xi’s visit follows US President Joe Biden’s visit in July when he greeted MBS with a fist bump at the start of a failed attempt to persuade the Saudis to raise oil production.
The Saudi prince sees China as a key partner in his Vision 2030 vision and wants the participation of Chinese companies in major projects aimed at diversifying the economy away from fossil fuels.
Major projects include the future $500bn megacity Neom.
The Saudi finance minister, Khalid Al-Falih, told Saudi media that this week’s visit “will help to improve economic and financial cooperation between the two countries”, and provide Chinese companies and investors with “beneficial returns”.
