Saudi Arabia says it’s ‘China-ready’

China and Saudi Arabia are strengthening ties in multiple sectors, and nowhere is this more evident than in education, tourism, and business. A significant milestone was reached in mid-August when 175 Chinese language teachers began teaching at primary and middle schools across the kingdom. This development followed an agreement reached in 2023 between the two countries aimed at fostering Chinese language education, with 800 jobs for such roles being advertised in China. For the two countries, the development signals more than just an educational exchange; it’s a reflection of broader cooperation between China and Saudi Arabia as both nations seek to deepen their economic and cultural ties. Language and cultural exchange The introduction of Chinese language teachers in Saudi schools is part of a broader strategy to strengthen cross-cultural understanding, and it’s one of the many ways in which both nations are facilitating closer ties. Saudi Arabia, which has historically been aligned with Western economies, is now looking eastward, recognizing China as a pivotal partner not just in trade but in cultural exchanges. The initiative represents a mutual commitment to fostering greater understanding and interaction between their populations. By teaching the Chinese language to Saudi students, both governments are laying the groundwork for the next generation to be more integrated into the burgeoning China-Saudi relationship. It also aligns with Saudi Vision 2030, which seeks to diversify the economy and reduce the kingdom’s dependence on oil by promoting tourism, technology, and education. Boosting tourism ties Beyond education, tourism between the two nations is surging. In July this year, Saudi Arabia gained Approved Destination Status (ADS) from China, a move expected to significantly increase the flow of Chinese tourists to the kingdom. This new designation simplifies visa procedures, improves payment systems – such as the introduction of UnionPay – and mandates Mandarin signage at key travel hubs. Over the past year, Chinese netizens have been sharing exotic images of their travels throughout the Kingdom. “It is recommended to visit the city later in the day, because it is too hot in the sun,” wrote tourist @Etalianne on Xiaohongshu of her visit to Diriyah, an ancient town known for its terracotta-colored mud-brick structures. “If you are tired, you can go to the tourist center to sit down. Not only can you blow air conditioning and take a break, but there are also free mineral water and brochures to take ... The staff is also super friendly and helpful.” With Chinese tourists expected to play a crucial role in Saudi Arabia’s tourism sector, especially as the country ramps up luxury and leisure tourism through its Vision 2030 initiatives, the kingdom is positioning itself as a top destination for Chinese travelers. The introduction of VisitSaudi.cn, a Mandarin-language portal, highlights the KSA’s commitment to attracting Chinese tourists. “Saudi’s approval as a tourist destination for Chinese visitors reflects our continuous efforts and participation in trade shows and conferences, leading to agreements with Chinese organizations,” said Saudi Tourism Authority CEO Fahd Hamidaddin. “We strive to provide a seamless, enjoyable, and safe experience for Chinese tourists.” Business collabs China’s involvement in Saudi Arabia’s tourism push is mirrored in the business sector, where the two countries are forging closer ties. Recently, Saudi Arabia’s Public Investment Fund (PIF) signed six memorandums of understanding (MoUs) worth $50 billion with major Chinese financial institutions. These agreements include partnerships with the Agricultural Bank of China, Bank of China, China Construction Bank, and the Industrial and Commercial Bank of China. The move strengthens Saudi Arabia’s financial ties to China as the kingdom looks to diversify its economy through strategic partnerships. Saudi Arabia’s commitment to digitalization and technological advancement is also benefiting from Chinese expertise. Ant International, part of Alibaba Group, is playing a role in this transformation by partnering with local businesses. Its Alipay+ service, which allows local SMEs to offer seamless digital payment experiences to international tourists, is one example of how technology is helping to integrate China and Saudi Arabia’s business landscapes. “Ant International is fully aligned to this program. We are committed to supporting Saudi Arabia to fulfill its goals for travel, digitalization and SME growth with our technologies and innovations,” Ant International CEO Yang Peng stated at a recent Fintech conference. Ant International’s other services, such as WorldFirst, help Saudi SMEs tap into international markets. This ecosystem of digital solutions facilitates cross-border commerce, enabling local merchants to take advantage of Saudi Arabia’s rapidly growing e-commerce market. Thanks to the country’s young population – 65% of Saudis are under 40 – e-commerce is expected to boom, with online fashion sales alone forecast to grow by 74% between 2023 and 2027. Why these developments matter These initiatives reflect a clear shift in Saudi Arabia’s strategy as it looks beyond its traditional Western partners and deepens its relationship with China. For Saudi Arabia, China represents not only a vital trading partner but also a source of technological and cultural exchange. The influx of Chinese language teachers and tourists, along with major financial agreements, signals that this partnership is only set to grow. “By strengthening bilateral ties with China, the ADS agreement opens doors for economic development across sectors, benefiting both nations,” Abdulrahman Ahmad Al-Harbi, Saudi Arabia’s Ambassador to China stated in June. Saudi Arabia has ambitious tourism goals, with the government aiming for 70 million international visitors by the end of the decade. In 2023, 27 million international tourists visited Saudi Arabia, many for religious purposes. However, the kingdom is rapidly expanding its leisure offerings, with projects such as the Red Sea Project leading the way. By 2030, the Red Sea Project aims to offer 8,000 hotel rooms spread across 50 resorts, including luxury brands like The Four Seasons, Rosewood, and the St Regis. For China, Saudi Arabia offers a stable and rapidly developing market. The kingdom’s young population is increasingly tech-savvy and eager to engage in international commerce, presenting opportunities for Chinese companies like Huawei, which are looking to expand in the Middle East. At the same time, these developments are reshaping the region’s geopolitical landscape. Saudi Arabia’s partnership with China represents a realignment of its global alliances, one that reflects a broader trend of Eastern economies taking on more prominent roles in global affairs. This growing cooperation is part of a larger shift that could redefine trade, business, and cultural exchanges in the region. Ultimately, deepening ties between China and Saudi Arabia will present major new opportunities for luxury and lifestyle brands. As tourism and business collaborations expand, brands that cater to both markets can tap into the growing demand for high-end experiences and products. And with an influx of Chinese tourists and the rise of e-commerce among Saudi Arabia’s young, tech-savvy population, luxury brands have a prime opportunity to position themselves and benefit immensely from this evolving landscape.

Saudi Arabia says it’s ‘China-ready’

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Published September 06, 2024

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Saudi Arabia says it’s ‘China-ready’