Arab-China trade surges to $400bn, paving way for housing cooperation

Officials following the inaugural Arab-China Ministerial Meeting on Housing and Urban Development, held alongside the 41st session of the Arab Ministers of Housing Council in Algeria. Supplied
Officials following the inaugural Arab-China Ministerial Meeting on Housing and Urban Development, held alongside the 41st session of the Arab Ministers of Housing Council in Algeria. Supplied
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Updated 18 December 2024
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Arab-China trade surges to $400bn, paving way for housing cooperation

Arab-China trade surges to $400bn, paving way for housing cooperation
  • China continues to draw global attention due to its economic reforms and growth
  • Arab-China Ministerial Meeting on Housing and Urban Development aims to lay the groundwork for a strategic partnership that will benefit both sides

RIYADH: Trade between Arab countries and China has surged by more than 1,000 percent over the past two decades, reaching approximately $400 billion in 2024, according to Ali bin Ibrahim Al-Maliki, assistant secretary-general of the Arab League.

Al-Maliki made the statement during the inaugural Arab-China Ministerial Meeting on Housing and Urban Development, held alongside the 41st session of the Arab Ministers of Housing Council in Algeria. The event aims to lay the groundwork for a strategic partnership that will benefit both sides, as reported by the Kuwait News Agency.

China, the world’s second-largest economy, continues to draw global attention due to its economic reforms and growth. In May, the China-Arab States Cooperation Forum in Beijing gathered leaders from Saudi Arabia, the UAE, and Egypt, culminating in the Beijing Declaration, which emphasized strengthening China-Arab cooperation and building a shared future.

“China has become the second-largest trading partner for Arab countries, with trade volume increasing from $36 billion in 2004 to nearly $400 billion in 2024,” Al-Maliki stated. He also highlighted the vital role of the housing and construction sectors in driving socioeconomic development and underscored the importance of China-Arab economic ties.

Al-Maliki stressed that the partnership between Arab states and China in the fields of construction and urban development could offer innovative, sustainable solutions to address global challenges, such as rapid population growth, climate change, and the need for sustainable resource management.

Algerian Housing Minister Mohamed Belaribi, who currently chairs the Arab Housing Ministers Council, described the meeting as a significant step toward forging high-level partnerships built on mutual benefit.

“Arab-Chinese relations have evolved since the 1950s, serving mutual interests and strengthening their positions regionally and globally,” Belaribi said.

He added that the meeting provided an opportunity to exchange expertise on key issues like housing sustainability, smart cities, earthquake-resistant construction, and urban renewal.

Chinese Minister of Housing and Urban-Rural Development, Ni Hong, emphasized the vast potential for enhanced cooperation between Arab countries and China in the construction and development sectors. “This opens the door for strengthened exchanges and marks the beginning of a new chapter in our collaborative efforts,” he said.

Ni also commended Arab countries for their achievements in urban development and expressed optimism for mutually beneficial outcomes.

He highlighted China’s ongoing commitment to forging stronger ties with Arab nations through initiatives such as signing memorandums of understanding and conducting seminars and training programs.

These developments align with China’s broader global strategy, particularly the Belt and Road Initiative, a major element of its international cooperation efforts.

Launched in 2013 by Chinese President Xi Jinping, the BRI aims to enhance global connectivity and foster cooperation in areas such as infrastructure, trade, finance, and cultural exchange, drawing inspiration from the ancient Silk Road.

Over the past decade, the BRI has expanded its scope to include over 150 countries and 30 international organizations, supporting projects ranging from railways and ports to green energy and digital infrastructure. The ongoing collaboration between China and Arab countries, particularly in the housing and construction sectors, reflects the growing strength and scope of the BRI’s global ambitions.


Saudi Arabia rallies region for deep decarbonization as COP30 nears

Saudi Arabia rallies region for deep decarbonization as COP30 nears
Updated 38 sec ago
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Saudi Arabia rallies region for deep decarbonization as COP30 nears

Saudi Arabia rallies region for deep decarbonization as COP30 nears

JEDDAH: A regional drive to cut carbon emissions in the oil and gas sector gained fresh momentum this week as the second symposium on downstream decarbonization opened in the Saudi capital, drawing high-level participation from international energy companies, industry experts, and policymakers.

Organized by the Organization of Arab Petroleum Exporting Countries and held under the patronage of Saudi Energy Ministry, the event—titled “Pathways to Reducing Carbon Emissions in Downstream Petroleum Industries”—builds on the success of its inaugural edition last June.

The symposium aims to advance strategies for curbing emissions in refining and petrochemical operations, reaffirming OAPEC’s commitment to sustainable energy development while fostering both regional and global collaboration.

Central to discussions is the challenge of balancing environmental goals with the continued strategic role of hydrocarbons in the global energy mix.

Opening the event, Saudi Arabia’s Deputy Minister for Sustainability and Climate Change Khalid Al-Mehaid highlighted the organization’s evolving vision.

He praised OAPEC’s decision to rebrand as the “Arab Energy Organization,” a move he said reflects a broader commitment to embracing all forms of energy to better serve the region’s long-term development goals.

He underscored the need for deep decarbonization strategies to safeguard energy security, protect the environment, and drive economic growth, according to the Saudi Press Agency.

Al-Mehaid emphasized the importance of integrated carbon management solutions, pointing to the role of the International Energy Forum in fostering collaboration between energy-producing and consuming nations in the face of the global energy trilemma.

With COP30 fast approaching, he called on Arab countries to move beyond negotiations and toward actionable climate cooperation, urging the adoption of science-driven solutions to meet net-zero emission targets.

OAPEC Secretary-General Jamal Al-Loughani also commended the Saudi Ministry of Energy for its central role in shaping the event’s direction.

He credited the leadership of Prince Abdulaziz bin Salman for driving the success of the symposium’s inaugural edition and setting the stage for its second iteration.

According to the SPA report, Al-Loughani noted that these collaborative efforts have significantly advanced both Arab and global dialogues on emissions reduction, particularly in refining the technical and technological approaches needed to meet climate goals.

Al-Loughani noted that the symposium comes at a pivotal moment, as the oil and gas sector faces mounting environmental challenges.

He emphasized that member states are actively working to transition toward a low-emissions economy through strategic investments in renewable energy, carbon capture and reuse technologies, and improved operational efficiency.

Al-Loughani also highlighted pioneering initiatives led by the Kingdom, including the Saudi Green Initiative and the Middle East Green Initiative. He commended similar efforts across the region, citing the UAE’s Al-Reyada carbon capture project, alongside notable programs in Algeria, Kuwait, Qatar, Iraq, Egypt, and Bahrain.

Mohammed Eid Al-Suraihi, president of the Arab Council for Creativity and Innovation, underscored the vital role of linking innovation with industrial solutions and stressed the importance of civil society participation in environmental awareness campaigns, according to the SPA.

He further emphasized that innovation remains key to building a more sustainable future for the petroleum sector.

Ali Al-Samawi, a senior energy analyst and representative of IEF Secretary-General Jassim Al-Shirawi, warned of unprecedented global challenges in decarbonizing the downstream petroleum industry. He pointed to circular carbon economy models, carbon markets, artificial intelligence-driven energy efficiency, and carbon capture, utilization, and storage technologies as essential tools for transformative change and unlocking future investment.

The symposium closely aligns with Saudi Arabia’s broader sustainability efforts, particularly through the Saudi Green Initiative and Middle East Green Initiative—both aimed at reducing carbon emissions and expanding renewable energy adoption.

The Kingdom has committed to achieving net-zero greenhouse gas emissions by 2060, a goal announced by Crown Prince Mohammed bin Salman during the 2021 Saudi Green Initiative Forum.

Saudi Arabia’s focus on decarbonizing its oil and gas sector—especially through advanced technologies like carbon capture — complements the symposium’s core agenda and reinforces the country’s leadership in promoting regional and international climate cooperation ahead of COP30.

According to SPA, the symposium drew broad participation, including representatives from OAPEC member states, international organizations, and over 15 leading global firms specializing in emissions reduction technologies.

Delegates from around 20 Arab and foreign countries attended, with nearly 140 experts and stakeholders present. The event featured 23 technical papers showcasing the latest innovations and strategies in emissions mitigation.


Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable

Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable
Updated 18 min 32 sec ago
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Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable

Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable

RIYADH: Moody’s has upgraded the insurance financial strength rating of Saudi Reinsurance Co. to “A2” from “A3” and revised its outlook to stable from positive, a new report showed.

Released by the global credit rating agency, the data indicated that Saudi Re’s A1.sa national scale IFSR has also been affirmed, according to a statement.

The upgrade of Saudi Re’s IFSR signifies the company’s improved business and financial position following the Public Investment Fund’s minority acquisition and the government’s implementation of enhanced reinsurance escrow regulations. Saudi Re is well-equipped to utilize these regulations to bolster its market position and potential for growth within the Kingdom.

The upgrade also aligns with the fact that the company experienced premium growth in 2024, with gross written premiums increasing by approximately 48 percent to SR2.36 billion ($629 million), driven by the strict implementation of existing domestic reinsurance ceding requirements and its participation in new government-mandated insurance initiatives.

The newly released Moody’s statement said: “Furthermore, the rating upgrade reflects our expectation that Saudi Re will continue to benefit from the ongoing growth and diversification of the Saudi economy, along with government initiatives aimed at promoting growth in the local insurance sector.”

“In addition, we believe that the company’s increased capital base, the good diversification of its business, and its central role in supporting the local insurance sector enable it to withstand potential shocks that may arise. We expect the ongoing trade tensions and increased volatility in financial markets to have a limited impact on the company,” it added.

The statement further disclosed that the organization expects the firm’s strong market position, coupled with its affiliation with PIF, to support continued growth in business volumes as market opportunities expand. 

It also emphasized that the company’s strong capital adequacy and consistent underwriting discipline support its ability to maintain a solid balance sheet and profitability, even amid rapid growth.

“The stable outlook reflects our expectation that Saudi Re will maintain its underwriting discipline and good profitability, while maintaining strong capital adequacy and asset quality. Factors that could lead to an upgrade or downgrade of the ratings,” the statement said.

Moody’s continued to note that increased ownership by PIF and evidence of explicit support may also contribute to a rating upgrade.


Saudi Arabia ramps up mining investment as sector outpaces global peers

Saudi Arabia ramps up mining investment as sector outpaces global peers
Updated 55 min 58 sec ago
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Saudi Arabia ramps up mining investment as sector outpaces global peers

Saudi Arabia ramps up mining investment as sector outpaces global peers

RIYADH: Saudi Arabia’s mining sector is emerging as a global standout, supported by regulatory reforms, major investment, and a strong pipeline of domestic projects, a new analysis said. 

In a report titled “Saudi Arabia Doubles Down on Mining,” S&P Global Ratings said the sector is poised for rapid expansion, with its contribution to gross domestic product expected to surge from $17 billion in 2024 to $75 billion by 2030, under the government’s Vision 2030 strategy. 

Saudi Arabia’s mining ambitions are anchored in its substantial natural endowments and reinforced by robust government support. The country holds an estimated SR9.37 trillion ($2.5 trillion) in mineral reserves — a 90 percent increase on a 2016 forecast — thanks to new discoveries of rare earth elements, base metals, and expanded phosphate and gold deposits. 

Hina Shoeb, credit analyst at S&P Global Ratings, said: “Saudi Arabia's proactive measures and substantial resources may help offset continued cost pressures and support the resilience of metals and mining companies’ credit profiles.”  

The agency noted that unlike many global peers, Saudi Arabia’s metals and mining companies benefit from strong government support, a modern regulatory framework — including the Mining Investment Law — and substantial state-led investment in mega projects and infrastructure. 

The number of exploitation licenses has increased by 138 percent since 2021, and exploration permits rose from 58 to 259, driven by the law’s transparency and investor-friendly policies.  

Flagship state-owned enterprise Ma’aden reported SR32 billion in 2024 revenues, with a diversified portfolio spanning gold, phosphate, aluminum, and base metals. Its gold output alone reached 450,000 ounces, while phosphate production surpassed 6.5 million tonnes.   

The number of exploration firms has grown from just six in 2020 to 133 in 2023. “As budgets continue to increase, the likelihood of discovering additional resources and expanding existing operations supports our view of sustainable, long-term growth of Saudi Arabia’s metals and mining industry,” the report said.  

The Vision 2030 framework has driven a shift away from oil dependency, focusing instead on sectors like mining, tourism, and manufacturing.   

The mining sector alone contributed about $400 million in revenues as of 2023 and is now backed by a $100 billion investment plan targeting critical minerals by 2035.   

Government funding also includes a SR29 billion commitment to the Wa’ad Al-Shamal phosphate project.  

Saudi Arabia’s geography offers logistical advantages with access to European, Asian, and African markets, while mega projects such as NEOM and Qiddiya are expected to drive up local demand for construction materials and high-value metals.   

These projects, the report stated, “which benefit from funding and infrastructure investments, aim to reduce the country’s import costs for metals, including iron, steel, precious and semi-stones, by creating a solid domestic market for metals and minerals.”  

However, the report also notes infrastructure and labor as potential bottlenecks. Many deposits are in remote desert regions lacking adequate transportation and water infrastructure.   

Additionally, the sector’s expansion will require substantial investments in workforce training to avoid high labor costs from foreign recruitment.  

S&P states that Saudi Arabia’s commitment to financial discipline, low debt levels in the sector, and targeted policy support position the Kingdom’s mining industry to grow sustainably — even amid volatile commodity markets.   

“We expect these initiatives will spur domestic demand for metals, reduce import dependency, and over time improve the sector's operational efficiency,” S&P added.


Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India

Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India
Updated 58 min 46 sec ago
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Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India

Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India
  • Pakistani stocks lose two percent of their index value at close of market, dollar bonds decline by more than four cents
  • Tensions between India and Pakistan surged this week after Delhi blamed Islamabad for an attack in Jammu and Kashmir

KARACHI: Pakistan’s stocks and dollar-denominated bonds plunged in value on Thursday, which financial experts attributed to investor concerns over surging tensions between Islamabad and New Delhi. 

Pakistan’s stocks shed two percent of their index value when the market closed on Thursday, as per data from the Pakistan Stock Exchange (PSX). The benchmark KSE-100 Index plummeted to 114,661 points but managed to recover some ground before closing at 115,019.81 points. 

Pakistan’s dollar-denominated bonds maturing in 2036 also declined by more than four cents to 74 cents, international news agency Reuters reported, citing data from Tradeweb. Pakistani financial experts attributed the plunges to increasing investor concerns after renewed tensions between Islamabad and New Delhi. 

New Delhi on Wednesday blamed Pakistan for being involved in an attack this week in Indian-administered Kashmir. Gunmen killed 26 men at a tourist site in the Anantnag district in Indian-administered Kashmir, following which India announced it was suspending its decades-old water-sharing treaty with Pakistan, among a raft of measures that included downgrading ties with Islamabad on Wednesday. Pakistan denied involvement in the attack and reciprocated with similar measures on Thursday. 

“Both the KSE-100 and Nifty-50 are in the red today due to pressure from rising Pakistan-India tensions following the Pahalgam incident,” Najeeb Ahmed Khan Warsi, head of online trading at brokerage firm Foundation Securities Ltd., told Arab News.

The Nifty-50 is India’s National Stock Exchange index, representing the float-weighted average of the country’s 50 largest listed companies.

Warsi said investor sentiment remained “cautious” despite corporate earnings largely aligning with market expectations, noting that trading at Asian markets had also subdued with global recovery losing momentum amid uncertainty over the US–China tariff policy.

“Geopolitical and global economic concerns continue to overshadow market fundamentals,” he said. 

Kamal Ahmed, an analyst at AKD Securities Ltd., said whenever border tensions arise, stock markets in both countries experience uncertainty. This prompts investors to take safer positions that impacts the market negatively. 

“The market sentiment going forward will depend on how long this standoff lasts,” Ahmed explained. “Investors will remain cautious and the market could decline further if the situation escalates.”

Top brokerage firm Topline Securities said the plunge reflected “heightened investor caution.”

“Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 505 million shares and a turnover of Rs24.44 billion ($87.94 million), underscoring continued investor engagement amid macro and geopolitical overhangs,” Topline Securities said in a statement. 

Despite being supported by strong earnings, Pakistan’s stock index has lost 2.9 percent since Tuesday, when the attack took place. Pakistan’s stock market has been performing impressively, gaining more than 80 percent last year in both dollar and rupee terms. This surge was primarily driven by investor optimism surrounding a positive review by the International Monetary Fund, whose executive board is expected to approve a $1 billion tranche for Pakistan next month.

Further positive developments, such as global ratings agency Fitch recently upgrading Pakistan’s credit rating, are expected to support the growth of the country’s equities. 


Re-exports drive 14% annual growth in Saudi Arabia’s non-oil trade in February

Re-exports drive 14% annual growth in Saudi Arabia’s non-oil trade in February
Updated 24 April 2025
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Re-exports drive 14% annual growth in Saudi Arabia’s non-oil trade in February

Re-exports drive 14% annual growth in Saudi Arabia’s non-oil trade in February

RIYADH: Saudi Arabia’s non-oil exports, including re-exports, rose 14.32 percent annually in February to reach SR26.11 billion ($6.96 billion), according to the latest data from the General Authority for Statistics.

The increase was primarily driven by a 46 percent surge in re-exports, which rose to SR10.05 billion and accounted for a record-high 10.7 percent of total trade — up from 7.2 percent the previous year.

The Kingdom posted a trade surplus of SR30.57 billion ($8.15 billion) in February, the highest value recorded in 10 months and a 4 percent increase during this period.

Despite the uptick in non-oil shipments, total exports declined by 2.65 percent year-on-year to SR93.74 billion, weighed down by an 8 percent drop in oil exports, which stood at SR67.62 billion. Oil retained a dominant 72.1 percent share of total shipments.

The latest trade data underscores Saudi Arabia’s ongoing efforts to diversify its economy under Vision 2030. The fall in oil exports aligns with the Kingdom’s participation in OPEC+ output adjustments aimed at stabilizing prices in global energy markets.

On April 3, eight OPEC+ nations, including Saudi Arabia, reaffirmed their commitment to supporting market balance. The group agreed to phase out 2.2 million barrels per day in voluntary production cuts, starting with a 411,000 bpd increase in May.

This front-loaded adjustment, equivalent to three months of scheduled increments, brings the Kingdom’s required output to 9.2 million bpd. The group will continue to monitor conditions with monthly reviews.

Top trade partners: China and UAE lead

China retained its status as Saudi Arabia’s largest trade partner in February, accounting for 16.18 percent of Saudi exports and 24.14 percent of the Kingdom’s imports.

The bulk of exports to China — around 89 percent— were oil-related, while the remaining 11.3 percent included plastics, rubber, chemicals, and transport equipment.

South Korea ranked second among export destinations, with shipments primarily composed of oil products. The UAE came in third for overall exports but led as the Kingdom’s top non-oil trade partner.

Roughly 85 percent of Saudi exports to the UAE were non-oil goods, and the country received about 30 percent of all non-oil exports during the month.

This strong trade relationship was anchored in the shipment of machinery and mechanical appliances, electrical equipment, and vehicles, as well as aircraft and associated transport equipment.

India and Japan rounded out the top five export destinations. Oil accounted for 81 percent of exports to India and 97 percent to Japan.

Imports into the Kingdom

Saudi imports in February were led by China, which supplied goods worth SR15.25 billion, making up 24.14 percent of the total. The US followed with 7.32 percent, while India accounted for 6.7 percent and the UAE 4.6 percent.

The top categories of imports included machinery and mechanical appliances, electrical equipment and parts, vehicles and transport equipment, base metals and their articles, and products of the chemical industries.

The ratio of non-oil exports to imports rose to 41.3 percent in February— the highest in 2.5 years— reflecting stronger non-oil trade performance and a slowdown in import activity, as total imports fell 5.6 percent to SR63.17 billion, the lowest level in 15 months.

Recent industrial data reinforces the impact of Saudi Arabia’s diversification strategy on trade dynamics.

According to the General Authority for Statistics, non-oil industrial activity rose by 3.2 percent year-on-year in February, supported by a 0.2 percent increase in overall manufacturing.

Within the manufacturing sector, chemical production expanded by 3.5 percent, while food processing jumped by 6.3 percent.

Other infrastructure-related sectors also saw gains, including a 13.1 percent increase in water and waste management services and a 1.1 percent rise in electricity and gas supply.

These trends signal that the Kingdom’s diversification efforts are boosting exports and strengthening internal production capabilities, helping to narrow the trade gap and reduce dependence on imported goods.

GCC trade sees strong rebound

Saudi Arabia recorded an SR4.53 billion trade surplus with GCC countries in February, up from an SR452 million deficit a year earlier. The improvement was largely driven by a 40.6 percent increase in the Kingdom’s trade balance with the UAE.

Much of this momentum stems from the surge in re-exports — goods imported into the Kingdom and then exported without significant transformation.

Re-export growth signals Saudi Arabia’s growing role as a logistics and distribution hub for the wider region, leveraging its expanding infrastructure, customs facilitation, and trade zone development.

The Kingdom’s strategic location at the crossroads of Asia, Africa, and Europe— combined with world-class ports, industrial cities, and bonded logistics zones— has made it increasingly attractive for regional and international supply chain operations.

Initiatives like the National Industrial Development and Logistics Program and Saudi Arabia’s push to be a global logistics center have bolstered this re-export capability.

This shift is further supported by efforts among Gulf states to deepen regional integration, simplify cross-border trade, and promote economic unity.

Enhanced connectivity, customs coordination, and regulatory alignment have improved the movement of goods and services across borders, particularly between the Kingdom and the UAE, which is a key destination and conduit for Saudi re-export flows.