Saudi Investment Minister Leads High-Level Delegation to China to Advance Strategic Economic Ties

Vehicles move during sunset in Beijing, China, Sunday, Aug. 24, 2025. (AP Photo/Mahesh Kumar A.)
Vehicles move during sunset in Beijing, China, Sunday, Aug. 24, 2025. (AP Photo/Mahesh Kumar A.)
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Saudi Investment Minister Leads High-Level Delegation to China to Advance Strategic Economic Ties

Vehicles move during sunset in Beijing, China, Sunday, Aug. 24, 2025. (AP Photo/Mahesh Kumar A.)
Vehicles move during sunset in Beijing, China, Sunday, Aug. 24, 2025. (AP Photo/Mahesh Kumar A.)

Saudi Minister of Investment Khalid Al-Falih is leading a high-level delegation of senior government officials and prominent business leaders on an official visit to China within the framework of the Saudi-Chinese High-Level Joint Committee, which receives close attention and follow-up from the leadership of both countries, through the Subcommittee on Trade, Investment, and Technology.

The Subcommittee, which is co-chaired by al-Falih and China’s Minister of Commerce Wang Wentao, held its fifth meeting in mid-May.

According to the Ministry of Investment, the visit reflects the strong momentum in Saudi-Chinese economic relations, with bilateral trade now exceeding $100 billion annually, making China the Kingdom’s largest trading partner.

Chinese foreign direct investment (FDI) in the Kingdom increased from SAR24.1 billion in 2023 to SAR31.1 billion in 2024, marking a growth of 28.8%.

Investment inflows rose from SAR3.2 billion to SAR8.6 billion in the same period, an increase of 163.9%, while net inflows surged to SAR7 billion, up 217.8%.

These developments underscore the strength of the Saudi market and growing investor confidence. The largest share of Chinese investment is concentrated in manufacturing, alongside significant activity across other sectors such as financial services and insurance, construction, mining, technology, trade, infrastructure, and healthcare.

The delegation’s program includes high-level meetings with senior officials and investors in multiple Chinese cities. In Shanghai, discussions will focus on industrial and petrochemical value chains, while in Beijing, the emphasis will be on financial partnerships and cooperation with state-owned enterprises. The program also features strategic visits to key industrial facilities and participation in financial market activities in Hong Kong.

The visit builds on a series of recent successes in bilateral cooperation, most notably the Saudi-Chinese Investment Forum held in December 2023. The forum brought together more than 1,200 government and private sector representatives and resulted in the signing of over 60 memorandums of understanding across the sectors of energy, agriculture, tourism, mining, finance, logistics, infrastructure, technology, and healthcare.

In May 2024, Al-Falih also participated in the China-GCC Industrial and Investment Cooperation Forum, alongside more than 50 Saudi officials and business leaders.

These efforts are part of Saudi Arabia’s broader investment strategy to advance the goals of Vision 2030 by strengthening international partnerships, diversifying investments, and expanding cooperation across non-oil sectors.

The Saudi delegation includes representatives from the Ministry of Investment, the National Industrial Development Center, the Global Supply Chain Resilience Initiative (GSCRI), the Ministry of Industry and Mineral Resources, the Economic Cities and Special Zones Authority, and the Saudi Authority for Industrial Cities and Technology Zones (MODON).



Aramco President & CEO: Attacks on the Region’s Energy Infrastructure Threaten Global Economies

Amin Nasser speaks at the 25th WPC Energy Congress in Riyadh (Asharq Al-Awsat)
Amin Nasser speaks at the 25th WPC Energy Congress in Riyadh (Asharq Al-Awsat)
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Aramco President & CEO: Attacks on the Region’s Energy Infrastructure Threaten Global Economies

Amin Nasser speaks at the 25th WPC Energy Congress in Riyadh (Asharq Al-Awsat)
Amin Nasser speaks at the 25th WPC Energy Congress in Riyadh (Asharq Al-Awsat)

Amin H. Nasser, President & CEO of Aramco, has warned that the consequences of attacks on the region’s energy infrastructure extend beyond its own markets to economies and markets around the world. He stressed that protecting energy facilities and supply routes requires international cooperation, as recent disruptions pose challenges to global energy security.

Speaking at the 25th WPC Energy Congress in Riyadh, Nasser said disruptions in the Strait of Hormuz and attacks on energy infrastructure across the region had exposed the extent to which the links in the global supply chain are interconnected. He noted that continued disruptions were intensifying pressure on crude oil and refined product markets, particularly diesel.

He added that available commercial inventories now offer only a limited buffer against shocks, warning against relying on them as a permanent solution for energy security. He stressed that restoring the flow of supplies through the Strait of Hormuz and rebuilding market confidence remain essential to easing pressure across the energy supply chain.

Nasser explained that Saudi Arabia’s energy system had continued to operate with high reliability throughout the crisis, supported by strategic investments in infrastructure and operational capabilities, diversified export routes, integrated facilities, and digital protection systems.

Proactive Investments Strengthen Resilience

Nasser stressed that resilience in the energy sector cannot be achieved through a single pipeline, facility, or technology. Rather, it requires an integrated system encompassing infrastructure, spare production capacity, multiple export routes, and the financial and human resources needed to maintain operations and investment during crises.

He added that Aramco, in coordination with the Ministry of Energy, was exploring additional crude oil export options, alongside expanding storage capacity outside the Kingdom and deploying advanced technologies to inspect facilities, accelerate maintenance and repair work, and limit damage.

He emphasized that the costs of investments needed to build resilience are borne by the entities that undertake them, while the benefits extend to economies, consumers, businesses, and investors. Avoiding disruptions, he noted, has economic value that deserves greater recognition, helping sustain the investments essential to energy security.

iktva Supports Supply Continuity

Nasser noted that Aramco’s In-Kingdom Total Value Add program (iktva), launched more than a decade ago, had helped establish a domestic supply base and strengthen the company’s ability to respond to exceptional circumstances.

He said that more than 90% of the materials used to restore operations over the past eight months had been sourced locally, enabling restoration work to be completed in hours and days rather than weeks and months.

He added that localizing supply chains is an important factor in strengthening preparedness for crises, while also supporting the domestic economy, developing national industries, and creating jobs.

Nasser stressed that building resilience requires sustained investment over many years, rather than short-term decisions. He also highlighted the importance of protecting the capabilities already developed and preparing for the Kingdom’s future needs.

80% Increase in Gas Production Targeted by 2030

Regarding the company’s future plans, Nasser said expanding gas production was a key pillar of Aramco’s strategy, with the company targeting an approximately 80% increase in sales gas production by 2030 compared with 2021 levels.

He added that gas expansion complements the National Renewable Energy Program, which includes solar and wind projects aimed at diversifying electricity generation sources and reducing emissions.

He explained that combining gas with renewable energy supports a more diversified and resilient electricity generation mix, helping improve resource utilization and meet the needs of the domestic economy. This is being pursued alongside the development of carbon capture, utilization and storage (CCUS), artificial intelligence, and advanced digital solutions.

He noted that these efforts align with the objectives of Saudi Vision 2030, particularly economic diversification, the development of local capabilities, industrial growth, job creation, and the establishment of a more sustainable energy system.

The Middle East: A Pillar of Global Energy Security

Nasser stressed that the Middle East remains a key pillar of global energy security, given its substantial share of proven oil reserves and spare production capacity. He noted that more than 90% of the world’s spare production capacity is concentrated in the region, according to his remarks.

He added that diversifying supply sources does not necessarily mean being able to diversify the geographical locations from which energy originates. He warned that attacks on the region’s infrastructure have repercussions for markets and economies worldwide.

He emphasized that protecting the energy facilities and transportation routes on which the global economy depends requires joint international efforts. No single country, regardless of its capabilities, can protect every element of the global supply system on its own.

Multiple Pathways for the Energy Transition

Regarding the future of energy, Nasser said transition pathways would differ from one country to another according to their needs and economic circumstances, stressing that oil and gas would remain important components of the global energy mix.

He added that providing reliable and affordable energy is essential to supporting economic growth, creating jobs, and improving living standards, particularly in developing economies facing challenges in meeting growing energy demand.

He concluded by emphasizing the importance of building an integrated energy system combining oil, gas, and renewable energy, one that operates efficiently under normal conditions and can withstand pressure during crises. Such a system, he said, would strengthen energy security in Saudi Arabia and around the world while supporting future growth.


US Energy Secretary: Oil Flows Through Hormuz Reach 80-90% of Pre-Conflict Levels

US Energy Secretary Chris Wright participating via video call in the WPC Energy Congress. (Asharq Al-Awsat)
US Energy Secretary Chris Wright participating via video call in the WPC Energy Congress. (Asharq Al-Awsat)
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US Energy Secretary: Oil Flows Through Hormuz Reach 80-90% of Pre-Conflict Levels

US Energy Secretary Chris Wright participating via video call in the WPC Energy Congress. (Asharq Al-Awsat)
US Energy Secretary Chris Wright participating via video call in the WPC Energy Congress. (Asharq Al-Awsat)

US Energy Secretary Chris Wright said oil flows through the Strait of Hormuz had recovered to 80% to 90% of pre-conflict levels, averaging 13 million to 14 million barrels per day, while increased flows through alternative pipelines had helped support global supplies.

Speaking via video link at the WPC Energy Congress, Wright said spare production capacity and substantial inventories had helped keep crude oil supplies at manageable levels despite ongoing challenges. The crude oil supply problem was largely under control, but not fully resolved, he said.

The bigger challenge was refined petroleum product flows out of the Arabian Gulf, which remained at just 25% to 35% of pre-conflict levels, worsening shortages of diesel, jet fuel and gasoline.

Refined product shortages add to market pressures

Wright said the decline in Gulf refined product exports coincided with lower supplies from other sources. Russia, once a major diesel supplier, had become a net importer, albeit in limited volumes.

China had sharply cut refined product exports and announced it would not export such products in October, adding to pressure on global markets, he said.

Wright expressed hope that increased output from Chinese refineries, which have spare capacity and are benefiting from attractive profit margins, would help ease shortages. US refineries were also processing crude and producing refined products at record levels, he added.

He said the course of the Russia-Ukraine war and China's policy on refined product exports would affect supply in the coming period.

Shipping constraints hamper supply recovery

Wright said maritime shipping was another factor complicating the recovery in refined product flows from the Gulf, citing higher transport costs and longer shipping routes.

Houthi disruptions in the Bab al-Mandab Strait had forced oil tankers to take longer routes, while shifts in supply sources and Iranian attacks on vessels had added pressure on available shipping capacity, he said.

A decline in Iranian, Venezuelan and Russian oil flows through channels that had used the so-called “dark fleet” had freed up a significant number of tankers previously used to transport those supplies, Wright added.

Some of those vessels needed to be reintegrated into the mainstream shipping system, with sanctions lifted where possible, to increase capacity for transporting refined products from the Gulf and support continued oil and gas operations, he said.

Diesel and jet fuel prices rise

Wright warned that higher shipping costs were having a greater impact on markets farther from supply sources. Global diesel prices had reached very high levels, while jet fuel prices had also risen, alongside a more moderate increase in gasoline prices.

Spare production capacity and inventories had helped contain pressure on the crude oil market, he said, but shortages of refined products and constraints on maritime shipping continued to pose challenges.

Wright concluded that the response to the conflict had demonstrated the energy system's ability to adapt, but stressed that the crisis was not over and that continued efforts were needed to maintain stable supplies.


IMF's Georgieva Urges Member Countries to Act Swiftly on Debt, Inflation

IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
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IMF's Georgieva Urges Member Countries to Act Swiftly on Debt, Inflation

IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)

The International Monetary Fund is urging its member states to act swiftly if they see inflation rising and to work on reducing large deficits, IMF Managing Director Kristalina ‌Georgieva said ‌on Monday, ‌noting stubborn ⁠inflation fueled by ⁠AI investments.

Georgieva told a panel at the annual meetings of the IMF and World Bank ⁠in Bangkok that sharp ‌increases ‌in defense spending were also ‌pushing inflation higher ‌after the energy shock of the war in the Middle East, which ‌in turn was putting pressure on central banks ⁠to ⁠raise interest rates, reported Reuters.

But that had consequences for developing countries and emerging markets, which she said were now "becoming victims of the increase in yields in advanced economies," she said.