Recent data reveals that Middle Eastern companies have achieved a record trading volume of $9 billion in the Greater China region to date this year. A prime example of this trend is Saudi Aramco, whose increasing collaboration with Chinese enterprises underscores a strong commitment to the Chinese economy.

Saudi Aramco, the world’s largest national oil company, is also one of the leading integrated energy and chemicals companies globally, with a market capitalization exceeding $2 trillion as of January 2024. In 2023, it emerged as one of the top foreign investors in China. On March 26 that year, Saudi Aramco announced a partnership with China North Industries Group and Panjin Xincheng Industrial Group to establish a large integrated refinery and petrochemical joint venture, with a total investment of 83.7 billion yuan. The following day, it signaled plans to acquire 10% of Rongsheng Petrochemical for 24.6 billion yuan (approximately $3.6 billion) through its subsidiary, Aramco Overseas Company. On September 27, Aramco’s subsidiary, Aramco Asia, signed a framework agreement to acquire a 10% strategic stake in Jiangsu Shenghong Petrochemical, a subsidiary of Dongfang Shenghong. Finally, on October 11, it entered into a memorandum of understanding with Nanshan Group, Shandong Energy Group, and Shandong Yulong Petrochemical to facilitate Aramco’s acquisition of a 10% strategic stake in Shandong Yulong Petrochemical.

As we move into 2024, Saudi Aramco’s investment momentum in China shows no signs of slowing, with several investment intentions already announced. On January 22, Saudi Basic Industries Corporation (SABIC), in which Aramco holds a 70% stake, finalized its investment decision on the China-Saudi Arabia Gule Ethylene project, anticipated to have a total investment of about 44.8 billion yuan (around $6.4 billion), making it Fujian Province’s largest single foreign investment project to date. In April, Aramco signed a memo with Jiangsu Hengli Group to acquire 10% of the company, and framed a cooperation agreement with Rongsheng Petrochemical to explore a potential acquisition of 50% equity in Ningbo Zhongjin Petrochemical.

Moreover, Saudi Aramco’s investment strategy extends beyond oil and petrochemicals. In June, the company announced plans to acquire a 10% stake in global powertrain technology firm HORSE Powertrain Limited, becoming a shareholder alongside Renault and China’s Geely Holding Group. On September 24, Saudi Aramco partnered with China National Building Material Group to sign a five-year cooperation framework agreement aimed at sharing opportunities and advancing development in advanced materials and industrial growth. Walid D. Jafaar, the Executive Vice President of Technical Services at Saudi Aramco, expressed a strong desire to deepen collaboration with China National Building Material Group in materials science, paving the way for significant breakthroughs that could benefit the construction industry and other related sectors.

Additionally, China has become a focal point for Saudi Aramco’s external venture capital efforts. Since 2021, Prosperity7, Aramco’s venture capital arm, has invested in Chinese companies from its offices in Beijing and Shanghai, making it a key player in Saudi Aramco’s investment strategy in China. To date, the fund has invested in over 20 Chinese companies across diverse sectors, including healthcare, artificial intelligence, and electric vehicles.

Notably, Saudi Aramco’s leadership has consistently expressed confidence in the Chinese market. Mohammed Qatarni, President of Saudi Aramco’s Downstream business, emphasized that China is fundamental to Aramco’s long-term success in downstream operations and petrochemicals. Executive Vice President Yasir Al-Mufrej remarked, “China’s achievements are remarkable and its economic transformation is underway, impacting the world profoundly. Our frequent investments in China stem from our belief in its long-term growth potential and our determination to become the preferred partner in the region. We are committed to being a significant supplier of energy and chemicals to China, supporting its energy security. The friendliness and goodwill exhibited by all parties inspire us, and our win-win cooperation is accelerating.”