Factbox: Saudi-China energy, trade and investment ties

Saudi Crown Prince Mohammed bin Salman (4th R) attends a meeting with Chinese President Xi Jinping (3rd L) at the Great Hall of the People in Beijing on February 22, 2019. (Photo courtesy: AFP/FILE)
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Updated 07 December 2022
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Factbox: Saudi-China energy, trade and investment ties

  • Chinese delegation is expected to sign dozens of agreements with Saudi Arabia and other Arab states
  • China is Saudi Arabia’s largest trading partner, with bilateral trade worth $87.3 billion in 2021

Saudi Arabia will host a China-Arab summit on Dec. 9 attended by Chinese President Xi Jinping, with the leaders of the two countries expected to discuss trade ties and regional security.

Xi’s visit comes at a time when US-Saudi ties are at a nadir, uncertainty weighs on global energy markets with the West imposing a price cap on Russian oil and as Washington warily eyes China’s growing influence in the Middle East.

The Chinese delegation is expected to sign dozens of agreements with Saudi Arabia and other Arab states covering energy, security and investments, diplomats have told Reuters.

Below are some details about oil, trade and security relations between China and Saudi Arabia.

OIL TRADE

China is Saudi Arabia’s largest trading partner, with bilateral trade worth $87.3 billion in 2021. Chinese exports to Saudi Arabia reached $30.3 billion, while China’s imports from the kingdom totalled $57 billion.

Saudi Arabia is China’s top oil supplier, making up 18 percent of China’s total crude oil purchases, with imports totalling 73.54 million tons (1.77 million barrels a day) in the first 10 months of 2022, worth $55.5 billion, Chinese customs data shows.

Oil imports last year amounted to 87.56 million tons, worth $43.9 billion, making up 77 percent of China’s total merchandise imports from Saudi Arabia.

State-run Saudi Aramco has annual supply deals with half a dozen Chinese refiners including Sinopec, CNPC, CNOOC, Sinochem, Norinco as well as private refiner Zhejiang Petrochemical Corp.

REFINERIES

Aramco in early 2022 made a final investment decision to build a $10 billion refinery, petrochemical complex in northeast China, marking its single largest investment in China.

Named Huajin Aramco Petrochemical Company, the joint venture groups Aramco, Huajin Chemical Industries Group Corporation (000059.SZ) — a unit of defense conglomerate Norinco-- and Panjin Xincheng Industrial Group.

The project, expected to be operational in 2024, combines a 300,000-bpd refinery and 1.5 million tons per year ethylene plant, with Aramco set to supply up to 210,000 bpd crude oil.

Aramco’s only other similar investment in China is a 25 percent stake in Refining and Petrochemical Company Ltd. in Fujian province controlled by state refining giant Sinopec Corp. , which began in 2008 operating a 280,000 bpd refinery and a 1.1 million ton per year (tpy) ethylene complex.

Aramco in October of 2018 signed a memorandum of understanding with Zhejiang provincial government to invest 9 percent in Zhejiang Petrochemical Corp. that operates China’s single-largest refinery of 800,000 bpd. No further progress has been announced since.

Similarly, Sinopec owns 37.5 percent in Yanbu Aramco Sinopec Refining Co. (YASREF), a JV with Aramco that operates a 400,000-bpd refinery in Yanbu on the Red Sea coast.

FINANCIAL

China’s state-owned Silk Road Fund is part of a consortium led by US-based EIG Global Energy Partners that in mid-2021 closed a deal to buy 49 percent of Saudi Aramco’s oil pipelines business for $12.4 billion.

Silk Road is also part of a consortium led by BlackRock Real Assets and Hassana Investment Company that announced in February completion of a 49 percent stake acquisition in Aramco Gas Pipelines Company for $15.5 billion.

POWER

Saudi utility developer ACWA Power, partly owned by the Saudi sovereign wealth fund, said in September that it agreed with Silk Road Fund to jointly invest in a 1.5 gigawatt (GW) gas-fueled power plant in Uzbekistan for $1 billion, part of Beijing’s One Belt One Road initiative.

State-run China Energy Engineering Corp. (CEEC) is building a 2.6-GW solar power station in Al Shuaiba in Saudi Arabia, also owned by ACWA Power, the Middle East’s largest solar project.

MILITARY, SECURITY

Saudi Advanced Communications and Electronics Systems Co. (ACES) signed a deal with China Electronics Technology Group to manufacture unmanned aerial vehicle payload systems in the kingdom, Saudi English-language newspapers Arab News and Saudi Gazette reported in March.

The UAE in February said it plans to order 12 L-15 light attack planes from China with the option of purchasing 36 more.


Saudi king, crown prince offer condolences to UAE president on key official’s demise

Updated 11 min 32 sec ago
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Saudi king, crown prince offer condolences to UAE president on key official’s demise

RIYADH: Saudi Arabia's King Salman and Crown Prince Mohammed bin Salman on Thursday offered condolences to the ruler of the United Arab Emirates on the death of a key official and a member of the royal family, the Saudi Press Agency reported. 

In a cable to Sheikh Mohammed bin Zayed Al Nahyan, the UAE president, King Salman expressed "our deepest and sincere condolences" on the death of Sheikh Tahnoun bin Mohammed Al Nahyan, Abu Dhabi’s ruler representative in Al Ain, who died on May 1, 2024.

Crown Prince Mohammed bin Salman expressed "my warmest and most sincere condolences" in a separate cable to the UAE leader, the SPA said.
 


French creatives bring enchanting art experience to Jeddah

Updated 01 May 2024
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French creatives bring enchanting art experience to Jeddah

  • For ‘ETH3R,’ Paul Marlier translates dancer Jeanne Morel’s graceful movements into digital art

JEDDAH: Artist Paul Marlier and dancer Jeanne Morel have brought an interactive digital art display dubbed “ETH3R” to Jeddah’s cultural hub, Hayy Jameel.

The French creatives feature immersive artworks generated using the biometric data of Morel captured during her movement in extreme environments — including in zero-gravity.

The unique blend of technology and creativity has captivated audiences with its perspectives on reality, and contrasts with the often mundane nature of daily life.

In an interview with Arab News, Marlier spoke about the creative process behind their digital artwork. He also highlighted the production of artworks inspired by the human and scientific data he had gathered.

“It is a real pleasure to be here, particularly in Hayy Jameel, where we blend art and science to create a sensory experience like no other,” he said. “It represents the DNA imprint of the world — the dance of our souls.” 

He added: “ETH3R encompasses paintings and dynamic installations derived from the biometric data of my wife, Jeanne Morel, who dances in diverse and extreme environments, from beneath the ocean depths to high-altitude astronaut training.”

Marlier has amalgamated this scientific data regarding human physiology with other information, including air quality, satellite imagery, and even facts from the Red Sea. “These artworks serve as emotional imprints, reminiscent of moments of grace. It’s truly a collaborative effort.”

Explaining the process, he added: “With Jeanne as the catalyst, adorned with sensors akin to a paintbrush, her dance emotions are translated through code into the digital art seen in the paintings. We explore themes of fragility, spirituality, and the inherent unity between humans and nature — the universal dance.”

“We approach data not as mere codification, but as sensations, enabling us to specify and share the experience. By capturing a wealth of information from this singular dancer, we endeavor to materialize the essence of grace,” Marlier said.

Morel added: “Dance is the way to express your deepest emotions, sometimes simpler than words.”

“Dance is the allegory of life. It allows me to stay alive, connected to the movements of the world. Our bodies are constantly dancing, moving, on this earth which itself dances around the sun and remains in balance thanks to gravity,” she added.

Of their first visit to the Kingdom, Marlier said: “The people are absolutely welcoming here. And spirituality and poetry are so present.”

Morel added: “We admire the spirituality and also the open-mindedness of this country regarding art and especially digital art.”

Waleed Harthi, an art enthusiast, said: “Witnessing art that exceeds boundaries was a mesmerizing journey, captivating our senses and sparking wonder at the fusion of art and technology. The live demonstration and dance were incredibly relaxing and offered a serene escape to some other imaginary world.”

The exhibition runs until May 11.


Saudi FM discusses developments in Sudan with army chief, RSF leader

Updated 01 May 2024
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Saudi FM discusses developments in Sudan with army chief, RSF leader

  • During the separate calls, the latest developments in the situation in Sudan and their repercussions on the Sudanese people were discussed

RIYADH: Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan spoke with Sudan’s Sovereign Council Chief General Abdel Fattah Al-Burhan and the leader of Sudanese paramilitary Rapid Support Forces Mohamed Hamdan Dagalo on Wednesday.

During the separate calls, the latest developments in the situation in Sudan and their repercussions on the Sudanese people were discussed, Saudi Press Agency reported. 

Prince Faisal stressed the importance of working to protect Sudan and its people from further destruction and preventing the worsening of the humanitarian conditions there.

The minister also said it was important to prioritise the interests of the Sudanese people and stop the fighting to protect state institutions and bring about safety in Sudan.


Farasan Island celebrates 20th Hareed Fishing Festival

Updated 01 May 2024
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Farasan Island celebrates 20th Hareed Fishing Festival

  • Event showcases tourist activities such as parasailing, traditional folk dances

RIYADH: Fishermen from the Jazan region have started preparing for the 20th Hareed Fishing Festival, which begins on Thursday.

The festival, which takes place on Farasan Island and lasts for two days, celebrates the fishing of parrotfish, otherwise known as hareed.

It showcases various tourist activities such as parasailing, traditional folk dances, and competitions for catching the fish, which is difficult due to their survival instinct which leads them to hide by corals.

Hareed are traditionally caught close to the shore in nets. The brightly colored fish come in different sizes and change color as they grow, the color varying according to their sex. They are considered parrot-like as they have teeth that they use to scrape food off coral reefs.

The fishing season varies across the region’s waters. In the past, the people of Farasan celebrated the event by visiting newlywed brides wearing traditional dress, while women and children joined in the festivities at her home.

Visitors to the festival will also get the chance to explore the heritage sites in Farasan, which include Wadi Matar, Al-Qassar village and Bait Al-Jarmal, along with several historic houses.

The island boasts a unique cultural heritage which centers on sailing and pearl-diving experiences in the past.

Jazan Gov. Prince Mohammed bin Nasser is launching the festival, which is organized by the region’s branch of the Ministry of Environment, Water and Agriculture, in partnership with the islands’ governorate.

Mohammed Al-Atif, the general director of the branch, said that the festival embodied the customs and traditions of the people of the Farasan Islands and was considered an annual event to highlight the region’s tourism potential.

He added that the festival also celebrates hareed, which appears at the same time each year and proves a major attraction for people in the Jazan region.


Riyadh hosts food technology and innovation show

Updated 01 May 2024
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Riyadh hosts food technology and innovation show

  • Industry giants showcase latest in processing, sustainability

RIYADH: More than 400 companies from 35 countries are taking part in the first Saudi Food Manufacturing show, which opened in Riyadh on Tuesday.

Held under the patronage of Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef, the event focuses on processing, packaging and ingredients and aims to facilitate high level business deals, connections and collaborations.

Three companies that won a Saudi Food Manufacturing Award at the event — Multivac, DC Norris and Brenntag — spoke to Arab News.

Amir Sotoudeh, managing director of Multivac, said the German firm won the Best Processing Innovation Award for its TX series and smart services at Gulfood Manufacturing.

The company has had a branch office in Riyadh since 2009 and the Kingdom is the company’s largest market in the Middle East.

“Saudi Arabia is a significant market, especially in recent years, with major developments focusing on local production and manufacturing. That’s where our technology and expertise as a market leader in processing and packaging are essential.”

DC Norris is a UK-based process equipment company serving 62 countries. It provides solutions for food, dairy and beverage manufacturing and won the Best Processing Manufacturing Award.

Stuart Rigby, product and process technology manager at DC Norris, said the company’s jet cook system, which is used in Saudi Arabia, Qatar, Dubai and Azerbaijan, was able to cook meals two to three times faster than traditional methods.

“It also uses considerably less water, resulting in zero burns, requiring less cleaning and reducing costs. Additionally, it consumes up to 55 percent less energy than traditional cooking methods,” he said.

Brenntag, a 150-year-old German company, is the global market leader in chemical and ingredient distribution. It won the Best Ingredients Innovation Award.

Mahaboob Shaik, technical sales manager at Brenntag, said: “We have replicated the characteristics of regular milk-based proteins and constituents using plant-based alternatives. We’ve developed a Greek-style feta cheese made from plant-based ingredients.

“This helps to reduce allergens like milk proteins in dishes like Caesar salad. Now, when you order a salad at a restaurant, you can enjoy a plant-based cheese, which is entirely vegan.”

Several Saudi manufacturers, including Sapin, Anasia and Memco, are taking part in the show, which provides a platform for companies to exchange ideas.

Majed Al-Argoubi, CEO of the Saudi Authority for Industrial Cities and Technology Zones, said: “The industrial sector is going to increase both the GDP and abilities of youth in the Kingdom.

“We are making impressive growth through Saudi Vision 2030 and Made in Saudi is remarkable for expanding cities across the country and achieving our goals.”

Among the most innovative products on display are the Novamyl BestBite from Novozymes, which improves texture and softness in baked goods while extending shelf life to reduce food waste. Others include sustainable packaging for dates from Napco, a sugar reduction method for fruit juice from Austria Juice, Lactosan, a natural culinary booster from FSL and Biopap, a range of renewable, compostable, high-performance food containers.

Pavilions from Italy, Germany, the Netherlands, US, France, Turkiye and China reflect the international scope of the show, which runs until Thursday.