Saudi Arabia, China agree on coordinating investments in BRI states

RIYADH, Oct 27, (Agencies): Saudi Arabia and China agreed Tuesday on jointly coordinating investments in the countries of the Belt and Road Initiative (BRI).

The proposed cooperation aims to ensure oil supply and demand security to BRI countries, the Saudi Press Agency reported.

This came in a virtual meeting co-chaired by Saudi Minister of Energy Prince Abdlulaziz Bin Salman and Vice Chairman of the National Development and Reform Commission of China Lian Weiliang.

The meeting was the fourth gathering of the Belt and Road Major Investment Projects and Energy Subcommittee, of which Prince Abdulaziz is the Saudi Chairman.

This Subcommittee is under the the Saudi-China High-Level Joint Committee, which is chaired by the Saudi Crown Prince.

“Saudi Arabia has always considered China as a strategic partner, and that the Committee strives for further alignment between the Saudi and China visions of the future, especially in the energy sphere, where there are multiple synergies,” Prince Abdulaziz said.

In the meeting, the co-chairs discussed areas where Saudi Arabia and China look to strengthen their relationship, such as oil and petrochemicals, decarbonization technologies, electricity and renewables, hydrogen, energy efficiency, civil nuclear energy, and supply chain security, in addition to industrial cooperation, the fourth industrial revolution, mining and logistics, civil aviation and aviation security, and digital economy.

The Saudi minister added that the trade exchange between the two countries is steadily growing in the past five years.

“China is the number one export destination for the oil Kingdom’s exports. The Kingdom will continue to be its reliable and trusted partner,” he said.

On the other hand, Mr. Lian appreciated the Kingdom’s efforts in maintaining the stability of global oil markets.

RIYADH: The Public Investment Fund (“PIF” or the “Fund”) today announced the launch of its Local Content Growth Program which aims to leverage PIF spending to catalyze the development of at-scale, competitive, and innovative sectors and industries in Saudi Arabia. The Program will aim to achieve the Fund’s aspiration of increasing its contribution to the Saudi economy by increasing PIF and its affiliates’ contribution to local content to 60% by the end of 2025, thereby enabling and supporting the country’s private sector in line with Saudi Arabia’s Vision 2030.

The Program also includes a Local Content Policy,in which PIF’s portfolio companies will encourage and support local products and services from project design stage to implementation, with priority given to private sector service providers and suppliers based on the size of their contribution to local content. With progress reported on a regular basis, this will support the competitiveness of local industries, driving innovation and confidence in local materials and designs.

The announcement comes at the sixth Edition of the Future Investment Initiative (FII) in Riyadh.

Jerry Todd,Head of the National Development Division at PIF, said, “Launching the PIF Local Content Growth Program strengthens PIF’s position as a key enabler of a thriving private sector and a more resilient domestic economy in Saudi Arabia. This move will help build local capabilities, create opportunities for private sector players across the value chain, and build on Saudi Arabia’s position at the regional and global level in line with Vision 2030.”

In 2021, PIF’s portfolio companies awarded SAR140 billion worth of contracts to local private sector companies, nearly 60% of which went to the construction materials and services, information technology and telecommunications, and financial services sectors. This initiative is in line with PIF’s strategic objective of building partnerships with and enabling the private sector to boost Saudi Arabia’s GDP and create jobs in strategic sectors.

The National Development Division was created to support PIF’s contribution to the local economy by defining PIF’s strategic directions regarding Saudi Arabia’s economic and social development, and evaluating the economic impact of PIF’s strategy and investments.

PIF has launched several initiatives to grow competitive and innovative industries in Saudi Arabia, focusing on its 13 strategic sectors. It facilitates creation of investment opportunities for local players, strengthens supply chains, creates high value jobs, and stimulates the local private sector.