RIYADH: Strategic partnerships between Saudi Arabia and China in the municipal and housing sectors are set to move to the next level following a high-level meeting held in Riyadh. Saudi Arabia’s Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail sat down with Beijing’s Ambassador Chang Hua to discuss possible collaborations in real estate, contracting and municipal services.
The meeting emphasized Saudi Arabi’s commitment to develop a strategic partnership with China, with plans of establishing a joint working team to discuss further opportunities. This comes after the Comprehensive Strategic Partnership agreement signed between King Salman and the Chinese President Xi Jinping in December 2022, which paved way for bilateral cooperation in the real estate sector.
The Saudi Chinese cooperation aims to improve the Saudi real estate sector by attracting investments and collaborating with leading firms. This initiative falls in line with Saudi Arabia’s Vision 2030’s Housing Program which is geared towards increasing the homeownership rate to 70 percent by the year 2030. The National Housing Co. has set a target to build 300,000 housing units by the end of the year 2025.
In August 2023, the Saudi ministry signed 12 real estate agreements amounting to SR 5 billion ($ 1.3 billion) with Chinese firms, and the National Housing Co. signed a deal with CITIC Construction Group to develop industrial city and logistics zones. Ambassador Chang Hua commended the bilateral diplomatic relations and expressed China’s desire to expand commercial and investment ties with Saudi Arabia, especially in the infrastructure and contracting sectors.
The rapid development of the Saudi real estate market has attracted global attention due to urban development projects and substantial infrastructure investments with a focus on sustainability and innovation.
