Saudi Arabia and China have entered into a strategic agreement to develop a 12-factory industrial city and logistics zones dedicated to construction materials, further strengthening the growing ties between the two nations.
The agreement was signed by Saudi Arabia’s National Housing Company (NHC) and China’s CITIC Construction Group during an official visit by Saudi Minister of Municipal, Rural Affairs, and Housing, Majed Al Hogail, to China.
The primary goal of this collaboration is to accelerate the development of housing projects across Saudi Arabia. By attracting top manufacturers of construction materials and leveraging Chinese expertise, the initiative aims to adhere to international standards and enhance the efficiency of real estate developments in the Kingdom.
NHC stated that this agreement is expected to have a significant economic and developmental impact on Saudi Arabia’s real estate sector. It will help improve the quality of residential projects, promote the use of innovative industrial cities and logistics zones, and support the transformation of the construction sector.
Additionally, the partnership will create opportunities for local small and medium-sized factories to grow, offer direct production lines for NHC projects, and boost the Saudi construction materials industry, generating new employment opportunities.
Minister Al Hogail praised the agreement as a “turning point” for the region. He added that localizing the production of construction and building materials within the Kingdom will provide essential support for ongoing housing projects.
Earlier in the week, the Saudi Ministry of Municipal, Rural Affairs, and Housing signed several agreements and memorandums of understanding with major Chinese construction companies to explore investment opportunities in Saudi Arabia’s booming real estate sector.
This agreement follows a landmark visit in December 2022 by Chinese President Xi Jinping to Saudi Arabia, where he met with King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman. During that visit, Xi Jinping emphasized China’s commitment to expanding cooperation, including offering language education opportunities to Gulf countries.
