Subtitle 1: Strengthening Trade and Economic Ties
Subtitle 2: Emphasizing Collaboration Over Competition
Subtitle 3: Saudi Arabia's Diversified Business Environment and Geographical Advantage
Subtitle 4: OPEC+ Reforms and Focus on Market Stability and Investment Recognition
In a statement of mutual collaboration, Energy Minister Prince Abdulaziz bin Salman highlighted Saudi Arabia's commitment to forging a strong trade and economic relationship with China, emphasizing collaboration rather than competition. Speaking at the 10th Arab-China Business Conference in Riyadh, the minister hinted at upcoming Saudi-Chinese investment announcements.
Synergies between the two countries were emphasized, with Saudi Arabia progressing steadily with its Vision 2030 plan while China continues to pursue its Belt and Road Initiative. Prince Abdulaziz expressed the belief that collaboration, rather than competition, should be the focus, as both countries have shared interests and a wealth of opportunities to explore together.
The minister dismissed criticism surrounding the growing ties between Saudi Arabia and China, affirming his confidence in the suitability of Saudi Arabia's business environment for investors. As the Kingdom diversifies its economy, it offers numerous global opportunities due to its pivotal geographical position.
During a panel discussion, Prince Abdulaziz highlighted the comprehensive reforms included in the latest agreement of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). He emphasized that the alliance is actively addressing market uncertainties and sentiments through proactive and precautionary measures.
Regarding the OPEC+ deal, the Saudi minister stated that the focus is on fulfilling the role of regulators and ensuring a stable market. Earlier this month, Saudi Arabia pledged to make significant production cuts in July, complementing the broader OPEC+ agreement to limit supply until 2024. The Energy Ministry announced that the Kingdom's output would decrease to 9 million barrels per day in July, down from around 10 million bpd in May.
Prince Abdulaziz expressed that the new OPEC+ deal would reward those investing in expanding their production capacity. He emphasized that the agreement would recognize and provide higher production allocations to those making long-term investments in the years to come, specifically mentioning 2024 and 2025.
Through its collaborative approach with China and proactive measures within the OPEC+ alliance, Saudi Arabia aims to strengthen international trade ties, ensure market stability, and provide investment recognition for the future.