Energy and solar plants.. The most prominent Chinese investments in Saudi Arabia

Participants in the 10th Arab-Chinese Conference, which concluded in Riyadh, on Monday, expressed optimism that Saudi Arabia's evolving economic landscape and Chinese expertise will help drive a huge transformation in the Kingdom and the Middle East.

Robert Hogwerff, chairman and chief researcher at the research firm Huron Report, was one of several key business figures attending the two-day event.

The researcher said that he visited Riyadh to explore the commercial opportunities available in the Kingdom.

Chinese investors

He said that Chinese investors seemed keen to explore the region's markets, especially Saudi Arabia.

He added that with new sectors such as renewable energy, fast-growing real estate, and rapid industrialization emerging in the region, there are huge opportunities for Chinese entrepreneurs.

Hoogerwerf said China has a large number of "innovative young companies" interested in entering the Saudi market.

Cheap energy prices

He said cheap energy prices make setting up bases in the kingdom a lucrative proposition for manufacturing companies. "And, of course, there is a lot of ambition to build new infrastructure here," he added.

The researcher said that Chinese companies have the necessary experience and desire to drive growth in the region, especially Saudi Arabia.

Solar Panels

He said he brought two Chinese companies with him to explore the Saudi market and launch operations in the kingdom. He added that one of the companies is a major manufacturer of solar panels. He said the company is in talks with Saudi partners to start manufacturing operations here as the kingdom is also making efforts to transition from traditional energy sources to renewable and sustainable energy sources.

For his part, Nicholas Agozen, CEO of the Hong Kong Exchange and Clearing Company Limited, seemed very optimistic about the prospects for increasing cooperation between the Arab world and China.

Chinese Arab Conference

He has made his stock exchange an ideal destination for regional players to make investments.

“Hong Kong is now the only market in the world where you can access not only international capital but also domestic capital from mainland China.”

He described the Chinese-Arab Conference as the ideal platform that helped Hong Kong connect China with the Arab world.

Oguzen said his company wants to ensure that the financial world is connected to the real economy.

“We are trying to ensure that capital from anywhere in the world can connect with the companies of tomorrow, such as (those in) the tech and biotech sectors, by adjusting our listing system.”

Oguzen said that many technology-focused companies require years of investment before they become profitable.

He added, "We are in the process of creating a system that will be able to attract these companies, include them in our market, and obtain financing and capital."

He said the business event in Riyadh will help bridge the gap between China and the Arab world and promote economic cooperation.

Continuous economic transformation

“The (ongoing economic) transformation in the Middle East and Saudi Arabia in particular is amazing, particularly in the last three or four years. We want to make sure the world knows and understands that.”

He added that the world needs more communication to ensure development.