Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
TT

Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)

Based on the Kingdom’s endeavor to exploit its geographical location to link the Arab world with China, Riyadh announced the launching a modern Silk Road to achieve a comprehensive renaissance for countries and peoples of the region and create diverse and promising opportunities.

On behalf of Saudi Crown Prince Mohammad bin Salman bin Abdulaziz, the Saudi minister of Foreign Affairs, Prince Faisal bin Farhan bin Abdullah, inaugurated on Sunday the 10th session of the Arab-China Business Conference in Riyadh, under the slogan, “Investment and Financing through the Belt and Road Initiative”.

- Exchange of experiences

The foreign minister highlighted Saudi Arabia’s keenness to raise the level of cooperation and strengthen the long-standing partnership in all vital investment fields between the Arab countries and China.

According to Prince Faisal bin Farhan, the conference is an opportunity to work on advancing and consolidating the historical Arab-Chinese friendship, and building a common future towards a new era that serves the people’s interests and maintains peace and development in the world.

The Saudi foreign minister added that the event underlined the importance, potential, and common visions that lie in the investment and trade relations between the Arab world and China. He stressed that mutual compatibility, exchange of experiences and the launching of new opportunities for growth and investment would achieve progress and prosperity for the peoples of the region and the world.

- Trade exchange

Bin Farhan touched on the successful historic visit of Chinese President Xi Jinping to Riyadh at the end of 2022, which he said further strengthened the ties between the two countries in all political, economic and investments fields.

He added that the visit coincided with the launch of the first China-Arab summit and the Chinese-Gulf summit, which both yielded positive results and saw the signing of many agreements and memorandums of understanding worth more than $50 billion, covering a range of sectors.

He continued that China was the largest trading partner of the Arab countries, revealing that the total volume of trade exchange between the two sides reached $430 billion last year, with a growth rate of 31 percent, compared to 2021.

The minister also noted that the Kingdom represented 25 percent of the total trade exchange between China and the Arab countries, with a total value of $106.1 billion in 2022, an increase of 30 percent compared to 2021.

- Sustainable partnerships

For his part, Eng. Khaled Al-Falih, Minister of Investment, said that the conference, which is held under the patronage of Crown Prince Mohammed bin Salman, reflected the interest of the leaders of the Arab world in strengthening relations with China and expanding the successes achieved in the political and diplomatic corridors to forge sustainable partnerships.

According to the investment minister, the Arab world enjoys civilizational and cultural elements, as well as human and natural resources, which qualifies it to assume an advanced and leadership position, and to achieve a comprehensive renaissance for countries and peoples in all fields.

- Development strategies

Al-Falih continued: “Being the largest economy in the Middle East and the fastest growing in the world over the past year, we are today committed to serving as a bridge connecting the Arab world with China, and contributing to the growth and development of their relations. Our hosting of this crowd of distinguished leaders from all over the Arab world, and from Beijing, is evidence on that.”

He also stated that among of the most important engines of growth in Saudi Arabia were the economic development strategies, which are based on a distinct national vision and strong executive plans and programs. In this context, the minister stressed that the Kingdom constituted a model that would prepare the Arab region for the future.

- Energy exports

The Saudi minister of investment welcomed China’s engagement in this renaissance, which he said would create huge opportunities in the future for economic, trade and investment cooperation.

He continued that this integration was evident in the exceptional growth of mutual trade between China and the Arab countries, as energy exports from the Arab world contributed to advancing the industrial development in China. In contrast, goods manufactured in Beijing reached every home, office, and factory in Arab countries, Al-Falih remarked.

According to the Saudi investment minister, the growth of mutual trade and the compatibility of needs and capabilities created many diverse and promising opportunities for investment, adding that time has come for Beijing to be a major investment partner in the development process taking place in the Arab region.

- Foreign investment

Al-Falih said that foreign direct investment from China abroad has grown at a rate of 20 percent annually over the past decade, bringing the share of the Arab world to about $23 billion.

There is still a possibility to increase investment flows in the other direction and to take advantage of the big and thriving Beijing market, he underlined.

Arab-Chinese Summit

For his part, Ahmed Aboul Gheit, Secretary-General of the Arab League, stated that Saudi Arabia’s hosting of this major conference comes as a continuation of its successful efforts since the holding of the Arab-Chinese Summit last year in Riyadh, which he said gave a new impetus to bilateral cooperation in various fields.

- Arab investment climate

Aboul Gheit pointed to the importance of the conference in introducing entrepreneurs to the available investment opportunities. He noted that this would contribute to economic development in the Arab world and China, and help to explore the best ways to maximize the available prospects and capabilities for the Arab and Chinese sides.

- Strategic partnerships

For his part, Hu Chunhua, Vice Chairman of the Political Consultative Conference in China, expressed his country’s readiness to work with Arab countries to implement the results of the first Chinese-Arab summit, and to build a joint strategic partnership at a higher level.

He also emphasized the Chinese-Arab strategic cooperation, which he said is witnessing continuous development and has become a model for countries to enhance mutual trade and investment, thanks to the guidance of the leaders.



Saudi Arabia Closes 2025 with Historic Industrial Reform, Global Digital Leadership, Record-Breaking Economic Activity

As 2025 draws to a close, Saudi Arabia records a year defined not merely by statistical growth, but by structural transformation across every major sector. (SPA)
As 2025 draws to a close, Saudi Arabia records a year defined not merely by statistical growth, but by structural transformation across every major sector. (SPA)
TT

Saudi Arabia Closes 2025 with Historic Industrial Reform, Global Digital Leadership, Record-Breaking Economic Activity

As 2025 draws to a close, Saudi Arabia records a year defined not merely by statistical growth, but by structural transformation across every major sector. (SPA)
As 2025 draws to a close, Saudi Arabia records a year defined not merely by statistical growth, but by structural transformation across every major sector. (SPA)

The second half of December marked a transformative conclusion to the year for Saudi Arabia, defined by a major policy shift to empower the industrial sector, world-class recognition in digital governance, and unprecedented levels of commercial and religious tourism activity.

Industrial empowerment and economic surge

In a decisive move to boost the competitiveness of the national industry, the Cabinet approved the cancellation of the expat levy for licensed industrial establishments. This decision builds on six years of exemptions that have already driven a 56% increase in industrial GDP to over SAR501 billion and a 74% rise in industrial employment.

Global leadership in tech and health

The Kingdom’s digital transformation strategy achieved a major milestone, ranking second globally in the World Bank’s GovTech Maturity Index with a score of 99.64%, placing it in the "very advanced" category.

In healthcare, the King Faisal Specialist Hospital and Research Center (KFSHRC) was ranked first in the Middle East for oncology and orthopedics and successfully pioneered a novel 3D-printing technique to treat inner ear disorders.

The period by numbers:

SAR30.7 billion: The record value of e-commerce sales in October 2025, marking a 68% annual increase.

68.7 million: The total number of worshippers and visitors received at the two holy mosques during the month of Jumada Al-Akhira.

8 million: The number of visitors to Riyadh Season 2025 since its launch in October.

32.3%: The year-on-year growth in non-oil exports for October 2025.

11.9 million: The number of Umrah performances completed in the month of Jumada Al-Akhira.

95 tons: The quantity of seasonal seeds stored by the Kingdom, setting a new Guinness World Record.

26: The number of awards won by Saudi students at the World Artificial Intelligence Competition for Youth (WAICY), taking 1st place globally.

$160 million: The total value of development loans signed with Mauritania for water and electricity projects.

158,000 tons: The volume of citrus production in the Kingdom as the new season launches.
.9%: The annual inflation rate in Saudi Arabia for November 2025.

12,000+: The number of industrial facilities now operating in the Kingdom, up from 8,822 in 2019.

2: The number of new Dark Sky Reserves accredited in AlUla (Sharaan and Wadi Nakhlah).

As 2025 draws to a close, Saudi Arabia records a year defined not merely by statistical growth, but by structural transformation across every major sector. From welcoming record numbers of tourists and pilgrims to securing top global rankings in digital governance and industrial competitiveness, the Kingdom has effectively translated strategic planning into tangible reality.

These milestones, spanning economic diversification, technological leadership, and international diplomacy, serve as cumulative evidence of a maturing ecosystem.

With every regulatory reform implemented and every global partnership secured this year, Saudi Arabia has done more than catalogue achievements; it has systematically narrowed the distance to its ultimate goals, moving one decisive year closer to the complete realization of Vision 2030.


China’s Factory Activity Snaps Record Slump on Festive Stockpiling

People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
TT

China’s Factory Activity Snaps Record Slump on Festive Stockpiling

People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)

China's factory activity unexpectedly grew in December, snapping a record eight straight months of decline, lifted by a rise in pre-holiday orders ​as officials seek to spur the $19 trillion economy's manufacturing sector without worsening deflation.

The official purchasing managers' index (PMI) rose to 50.1 in December from 49.2 in November, the National Bureau of Statistics' survey showed on Wednesday, topping the 50-point mark separating growth from contraction and beating a forecast of 49.2 in a Reuters poll.

"Assuming the improvement in the PMIs is borne out in the hard data, we think it will likely be a short-lived upturn in activity on the back of month-to-month swings in fiscal spending rather than the start of a more sustained pick-up," said Julian Evans-Pritchard, head of China economics at Capital Economics.

"The big picture is that the structural headwinds from the property ‌downturn and industrial ‌overcapacity are set to persist in 2026," he added.

Still, the data should ‌give ⁠policymakers ​cause for ‌optimism after choosing to see out 2025 without major additional stimulus to meet the full-year growth target of around 5%.

The production sub-index jumped to 51.7 from 50.0 in November, while new orders climbed to 50.8 from 49.2, marking their strongest performance since March. Supplier delivery times also improved, pushing the production and activity expectations component to 55.5, its highest reading since March 2024.

New export orders remained sluggish, however, edging up to 49.0 from November's 47.6, underscoring the need for officials to boost domestic demand and rely less on US demand, the world's top consumer market, in the face of President Donald Trump's ⁠tariffs.

Huo Lihui, an NBS statistician, said confidence appeared to be improving due to pre-holiday stockpiling, as the world's second-largest economy prepares to celebrate the Lunar ‌New Year in February, pointing to an uptick in the agricultural, food processing ‍and food and beverage sectors.

A separate private-sector PMI ‍published on Wednesday also showed marginal expansion in activity in December, driven by stronger production and domestic demand ‍in the absence of more foreign orders.

DEPRESSED DOMESTIC DEMAND

Ginning up domestic manufacturing without taking further steps to boost consumer demand risks worsening deflationary pressures, however.

In separate data released last week, Chinese industrial firms saw their profits fall 13.1% year-on-year in November, the steepest drop in over a year, suggesting households are not stepping in to pick up the shortfall as a slowing global economy weighs ​on exports.

At an agenda-setting gathering in early December, the ruling Communist Party leadership promised to boost income and stimulate consumption, although similar pledges in the past have struggled to deliver results.

Chinese consumers ⁠have so far been reluctant to spend, held back by an uncertain employment outlook and as a prolonged property crisis drains household wealth.

The official non-manufacturing PMI, which includes services and construction, was at 50.2, after shrinking in November for the first time in nearly three years.

Beijing's policymakers have come to recognize the need to rebalance the economy and transform its production-driven model as tensions with key export markets mount.

"The country's economic development still faces many old problems and new challenges; the impact of changes in the external environment is deepening, and the contradiction between strong supply and weak demand is prominent domestically," the readout of the Central Economic Work Conference said.

In an article published by the flagship party magazine Qiushi Journal in mid-December, President Xi Jinping said there was "overall capacity excess" and that "ultimately consumption is the sustainable driver of economic growth."

Beijing had previously rejected "overcapacity" as unfair criticism by Western governments towards China's industrial policies.

In a nod to those concerns, authorities ‌have this year vowed to crack down on price wars, prune production in some sectors and step up so-called "anti-involution" efforts.

The NBS composite PMI of manufacturing and non-manufacturing was 50.7 in December, compared with November's 49.7.


Xi Says China to Hit 2025 Growth Target of 'Around 5%'

Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
TT

Xi Says China to Hit 2025 Growth Target of 'Around 5%'

Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)

Chinese President Xi Jinping said Wednesday that the country's economy is expected to have grown "around five percent" in 2025, despite "pressure" during a year he described as "very unusual", state media said.

The announcement came in a New Year's Eve speech by Xi to a top political consultative body, reported by state news agency Xinhua.

Such an annual expansion would be in line with the official government target and on par with the five percent growth recorded in 2024.

The world's second-largest economy has come under increasing pressure in recent years, with consumer sentiment having so far failed to recover from a pandemic-induced plunge.

A persistent debt crisis in the property sector, industrial overcapacity and heightened trade conflict with Washington have also darkened the outlook.

"We faced challenges head-on and strived diligently, successfully achieving the main goals of economic and social development," Xi said in his remarks to the Chinese People's Political Consultative Conference, Xinhua reported.

"The growth rate is expected to reach around five percent," he said.

He added that "overall social stability was maintained" and an anti-corruption drive was "relentlessly pursued", according to the report.

Experts widely expect Beijing to announce a similar economic growth target for 2026 at a major annual political gathering in early March.

Data released Wednesday offered a positive sign for policymakers, with factory activity in December inching into expansionary territory to snap an eight-month streak of contraction.