Riyadh has long been trying to diversify its oil-reliant economy in order to fund its Vision 2030 plan. Since China is the kingdom’s largest oil consumer, establishing economic ties with Beijing in diverse fields can help reduce Riyadh’s reliance on revenue generated by the energy industry. 

Highlighting the deepening ties between two economic powerhouses, Saudi Arabia’s Public Investment Fund, one of the world's largest sovereign wealth funds, and six of China's leading financial institutions recently finalized investment agreements worth around $50 billion, an amount representing 1.5 times China’s total foreign direct investment inflow in 2023.

As announced by the PIF on Aug. 1, the institutions involved in these deals are the Agricultural Bank of China, Bank of China, China Construction Bank, China Export and Credit Insurance Corporation, Export-Import Bank of China and the Industrial and Commercial Bank of China.

Evaluating the long-term impact of these Sino-Saudi agreements, Dr. Sebastian Sons, a Gulf Cooperation Council analyst and senior researcher at the Center for Applied Research in Partnership with the Orient in Bonn, Germany, told Al Monitor, “For Saudi Arabia, China has emerged as the main trading partner for the last decade." He adding that "such agreements are corner-stones of a geopolitical strategy of economic and political diversification.”