Chinese Firms Expand in Middle East Boosting Regional Growth

Saudi Arabia's Vision 2030, a transformative economic diversification plan initiated in 2016, is making significant progress with up to 85% of its targets either met or on track, including a rise in non-oil sector GDP contribution to 56% and increased women's labor participation. The kingdom is actively attracting global investment, with over 675 multinational companies establishing regional headquarters in Riyadh, exceeding original goals. However, economic challenges persist, such as a budget deficit projected around 2-2.3% of GDP and delays in major projects like the downsized Neom megacity, with its completion now targeted for 2045. Amid these realities, Saudi Arabia is promoting high-tech and renewable energy sectors, including solar, wind, and green hydrogen, and encouraging investments in infrastructure like ports, airports, and urban developments such as the New Murabba project. Chinese companies are expanding their presence in the Middle East, particularly in technology and new energy sectors, reflecting a mutually beneficial growth pattern alongside Saudi Arabia's diversification efforts. Saudi officials emphasize the importance of global partnerships and supply chain resilience as key to sustainable growth and global economic stability in a rapidly evolving geopolitical landscape.