How Saudi Arabia has built new alliances

The increasing eastward orientation also reflects a desire by the Kingdom to reduce a reliance on the US as its single strategic partner. (File/AFP)
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Updated 21 June 2020
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How Saudi Arabia has built new alliances

  • The crown prince’s visits to Asia and Russia have solidified strategic economic relationships
  • Saudi Arabia, located right at the geographic center of this great tilt in economic power, has been increasingly looking towards the East

The world’s economic center of gravity has been moving inexorably eastwards for the past 50 years as the great trading powers of Asia – China, India, Japan, South Korea and a handful of others – have transformed themselves into modern consumer economies.

Asia is on the verge of overtaking the combined economic power of North America and Europe in terms of gross domestic product. Measured by accumulated wealth, Asia is already richer than either.

Saudi Arabia, located right at the geographic center of this great tilt in economic power, has been increasingly looking towards the East. That process has accelerated in the past three years, with a number of trading and investment relationships struck between the Kingdom and its new partners in what are still bizarrely referred to by some economists as “emerging markets.”

For Saudi Arabia, these countries have already emerged as a big focus for future economic and strategic direction. Even the global crisis of the coronavirus pandemic seems unlikely to slow the long-term process. 

The most important relationship is with China, the world’s biggest manufacturer and exporter, apparently destined to overtake the US as the world’s biggest economy in absolute terms sometime this decade.

However, since 2017 Saudi Arabia has also forged new commercial relations with India, a long-time trading partner of the Middle East, as well as enhancing older alliances with Japan and South Korea.

There has also been a blossoming of the partnership with Russia, based mainly on common interests in the energy sector, but also reflecting shared values across a range of investment goals in industry and infrastructure.

This increasing eastward orientation also reflects a desire by the Kingdom to reduce a reliance on the US as its single strategic partner.

“Maybe Saudi Arabia has realized that it risks being over-reliant on one big international partner in the USA. It is logical for the Kingdom to want to diversify its great power relationships.”

Frank Kane

Jonathan Fulton, assistant professor of political science at Zayed University in Abu Dhabi, told Arab News: “Maybe Saudi Arabia has realized that it risks being over-reliant on one big international partner in the USA. It is logical for the Kingdom to want to diversify its great power relationships.”

Surprisingly, given its historic role as a great power and trading base, China is the relative newcomer among the Kingdom’s eastern friends. Next month marks the 30th anniversary of the establishment of diplomatic relations between Riyadh and Beijing. 

The past three years have marked a rapid increase in Saudi-China links. King Salman visited the country as part of a six-country Asian tour early in 2017, setting the seal on a “comprehensive strategic partnership” between the two countries when he met Chinese President Xi Jinping.

A joint high-level committee was established to guide future economic development strategy. 

That was followed by a later visit by Crown Prince Mohammed Bin Salman, adding greater depth to the relationship and further aligning the two countries’ main economic development plans – the Belt and Road Initiative by which China seeks to play a leading role in regional development, and the Vision 2030 strategy aimed at diversifying Saudi Arabia away from oil dependency.

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“Saudi Arabia is willing to work with China to enhance synergy of development strategies, deepen cooperation in jointly developing the Belt and Road and bring benefits to both countries and peoples,” the crown prince said on his visit in February 2019.

Energy relations are at the heart of the new partnership. China is the biggest consumer of oil in the world, and Saudi Aramco is its biggest single supplier of crude. But the trading relationship goes a good deal farther.

“China is the economic base of the future in energy, and China’s appetite is the biggest in Asia. But it is not just crude oil. Increasingly, Saudi Aramco is a partner with China in downstream projects, like refining, petrochemicals and energy infrastructure,” Fulton said.

One of the first fruits was the Huajin Aramco Petrochemical Company, a joint venture with big Chinese partners to develop a $10 billion refining and petrochemicals complex. Aramco’s chief executive, Amin Nasser, said it was key to his strategy to move beyond a simple “buyer-seller relationship” in crude oil.

Similar commercial imperatives applied to the blossoming relationship with Japan, augmented by close personal relations between the Saudi royal family and the Japanese imperial dynasty. A big Saudi delegation attended the enthronement of the new Emperor Naruhito last year, coinciding with the launch online of Arab News Japan.

Energy and petrochemicals are again at the heart of the partnership. Japan is reliant on oil imports, and some 40 percent of its crude supplies are provided by Saudi Aramco, which has a long-term presence in Japan. SABIC, the big industrial conglomerate now part of Aramco, also has significant operations in the Tokyo area.

As Saudi Arabia extends its horizons beyond more traditional western partners, perhaps the best example of how common interests in the energy field can extend into other areas has come with Russia.

King Salman and the crown prince made the first official Saudi visit to Russia (or the former Soviet Union) in 2017, reflecting perhaps the most significant new alliance in the global energy sector for many decades.

The growth of American shale oil since the end of the global financial crisis gave Saudi Arabia and Russia – two of the top three global oil powers along with the US – a common interest in energy, which has translated into the Opec+ arrangement, an alliance of 23 of the biggest oil producers, to help regulate oil markets.

Just recently, Opec+ signed a historic deal to cut nearly 10 percent of the world’s crude output. which had been made surplus by the collapse in demand following global pandemic lockdowns. The deal is credited with having pulled global oil markets back from the chaos they suffered a couple of months ago.

An important player in the Opec+ negotiations was Kirill Dmitriev, chief executive of the Russian Direct Investment Fund (RDIF), an institution aimed at attracting inward investment into the country as well as entering into foreign investment partnerships. Saudi Arabia has been a key partner with RDIF in a range of investments in both countries, in areas such as transport, infrastructure and logistics.

To complete the circle of Saudi Arabia’s eastward shift, China has been brought into the Saudi-Russia partnership in a multi-billion dollar investment fund.

  • Frank Kane is an award-winning journalist based in Dubai. Twitter: @frankkanedubai


Mawhiba to host ‘Beyond Creative Minds’ conference this month

Updated 14 November 2024
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Mawhiba to host ‘Beyond Creative Minds’ conference this month

  • The organization, which nurtures the talents of gifted students, says event is a ‘global platform for talented and creative youth to collaborate in building a prosperous future’
  • It is expected to attract experts and researchers in the fields of science, technology and innovation from more than 50 countries

RIYADH: Mawhiba, an organization that works to nurture the talents of gifted students in scientific fields, will hold its third international conference this month with the theme “Beyond Creative Minds.”

Its Global Conference for Giftedness and Creativity will take place from Nov. 24 to 26 at King Abdullah Petroleum Studies and Research Center in Riyadh. Khalid Al-Sharif, the organization’s acting secretary-general, described the event as a “global platform for talented and creative youth to collaborate in building a prosperous future through the exchange of ideas and expertise.”

He told the Saudi Press Agency: “The event reflects the Kingdom’s commitment to supporting and empowering talent and promoting a culture of innovation to address future global challenges.”

The conference is expected to attract experts and researchers in the fields of science, technology and innovation from more than 50 countries, many of whom will give keynote speeches, take part in panel discussions and lead workshops.

Al-Sharif said the event will include a “‘creathon’ aimed at finding creative solutions to contemporary challenges. Attendees will also have access to exhibitions and various cultural visits scheduled alongside the conference.”

He added that Mawhiba, more formally known as the King Abdulaziz and His Companions Foundation for Giftedness and Creativity, will continue to develop talent, support creativity and provide resources to nurture the potential of gifted individuals. He thanked Minister of Education Yousef Al-Benyan for the substantial support he provides for the biennial conference.


Saudi and French ministers discuss cultural cooperation

Updated 14 November 2024
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Saudi and French ministers discuss cultural cooperation

  • Prince Badr bin Abdullah bin Farhan and Rachida Dati discussed cultural exchanges and cooperation relating to museums, libraries, theater, the arts, cuisine, heritage and film production

RIYADH: Saudi Arabia’s minister of culture, Prince Badr bin Abdullah bin Farhan, and his French counterpart, Rachida Dati, held talks in Paris on Wednesday on cultural cooperation.

They discussed cultural exchanges between their countries and cooperation relating to museums, libraries, theater, the arts, cuisine, heritage and film production.

Riyadh and Paris are looking to strengthen partnerships, nurture talent through training programs for workers in cultural sectors, and exchange expertise, the Saudi Press Agency reported. The Kingdom’s assistant culture minister, Rakan Al-Touq, also took part in the meeting.


Riyadh governor receives Albania’s envoy

Updated 13 November 2024
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Riyadh governor receives Albania’s envoy

Riyadh Gov. Prince Faisal bin Bandar received Ambassador of Albania to the Kingdom Saimir Bala in Riyadh on Wednesday.

They discussed various topics of common interest, the Saudi Press Agency reported.

Meanwhile, Eastern Province Gov. Prince Saud bin Nayef bin Abdulaziz met with Ukrainian Ambassador to Saudi Arabia Anatolii Petrenko in Dammam on Wednesday.

Prince Saud welcomed the ambassador to the Eastern Province. During the meeting, the two exchanged friendly talks and discussed a number of topics.
 


Biofach offers look into Saudi Arabia’s agricultural growth, future

Updated 13 November 2024
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Biofach offers look into Saudi Arabia’s agricultural growth, future

  • The Kingdom and MENA region represent an emerging market for organic food, says organizing official

RIYADH: Saudi Arabia is among the Gulf Cooperation Council nations taking significant steps to invest in developing its organic food and beverage sector, which has experienced a growth surge in recent years.

The three-day Biofach Saudi Arabia, which was held alongside Saudi Organic Food Day and concluded on Wednesday, is a key platform showcasing the Kingdom’s commitment to developing its agricultural future.

Biofach was organized by 1st Arabia Tradeshows and Conferences in collaboration with NurnbergMesse, with support from the Saudi Ministry for Energy, Water and Agriculture and the Saudi Organic Farming Association.

Christian Beyer, manager of international events at NurnbergMesse, highlighted the potential of the Middle East and North Africa region: “The MENA region, especially Saudi Arabia, represents an emerging market for organic food that was estimated at USD 7 billion in 2022 and can expect ongoing growth.”

Recognizing the importance of organic farming for food security and environmental sustainability, Saudi authorities are focusing on enhancing rural production and improving supply chains to ensure organic products reach consumers efficiently.

The exhibition’s knowledge-exchange platform addressed local challenges, including effective water and fertilizer management, which are crucial for the region’s arid climate.

Among the exhibitors was the Saudi company Aamal Al-Andalus, which provides organic fertilizers to address soil degradation and declining fertility. Their products are said to help treat and reduce environmental stress, increase agricultural production, and improve the quality of crops to enhance export opportunities.

Youssif Abdulqader, sales manager and engineer at Aamal Al-Andalus, told Arab News: “Food around the world is increasingly going organic, particularly when all inputs in the plants come from organic and safe sources.”

He noted that this shift is largely driven by the health issues linked to consuming fruits and vegetables produced through conventional farming methods, which are often less beneficial or even harmful to human well-being.

Abdulqader explained: “Conventional farming practices are generally well-structured and effective; however, they face challenges such as the excessive use of pesticides and their persistence in the soil.”

Farmers often encounter bacterial issues within their crops that need to be addressed cost-effectively to maximize profitability.

“This is where organic alternatives can be prohibitively expensive, prompting conventional farmers to seek cheaper, often internationally banned options,” he added.

He added that the use of pesticides results in chemical residues that can remain in the plant’s environment.

These residues pose significant health risks when consumers ingest vegetables like cucumbers and tomatoes.

“There is a concern that these chemicals may contain heavy metals that the human body cannot process, leading to serious health issues such as cancer, kidney failure, and liver diseases, which are frequently associated with traditional farming practices,” he explained.


Prophet’s Mosque imam attends India peace forum

Updated 13 November 2024
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Prophet’s Mosque imam attends India peace forum

  • More than 50,000 Muslims attended the event, which was broadcast on several media platforms and garnered more than 4 million views

RIYADH: The imam and khatib of the Prophet’s Mosque, Sheikh Abdullah Al-Baijan, took part in a peace conference themed “Islam is the Religion of Humanity and Peace” during his recent visit to India

More than 50,000 Muslims attended the event, which was broadcast on several media platforms and garnered more than 4 million views, the Saudi Press Agency reported on Wednesday.

As guest of honor, Al-Baijan delivered a speech in which he said that Islam was a religion of security and peace. He warned against divisions among Muslims and said that such discord threatened national unity, led to chaos and could incite wars.

Minister for Wakf and Haj in the government of Kerala Shri. V. Abdurahiman also spoke at the event, praising Saudi Arabia for its efforts in promoting Islam, peace and moderation.

Al-Baijan also joined the 35th All India Ahle Hadith Conference in New Delhi, where he commended Saudi Arabia’s efforts, led by its leadership, to promote security, peace, stability and the safeguarding of human dignity globally.