New Saudi initiative seeks Chinese investors to set up businesses in the Gulf kingdom

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Saudi Arabia is increasingly seeking entrepreneurs and businessmen from China, among other nations, to invest in the Gulf kingdom under the Meras initiative, launched last year even as Riyadh welcomes the China-proposed Belt and Road Initiative (BRI), as complementary to its ambitious ‘Vision 2030’ plans.

China has been Saudi Arabia’s largest trading partner since 2015 and bilateral ties between both the nations have warmed over the years. China’s plans in the Middle East under the BRI are entirely in sync with the Saudi Crown Prince Mohammed bin Salman’s "Vision 2030" initiatives, a Saudi government official told CGTN Digital.

"It is natural that the kingdom wants Chinese entrepreneurs and investors to make use of the Meras initiative in setting up businesses in Saudi Arabia,” said Ahmed Al Obaishi, Advisor to the Vice Minister at the Ministry of Commerce and Investment, who is also the manager of the Meras project.

Ahmed Al Obaishi, Advisor to the Vice Minister at Saudi Arabia's Ministry of Commerce and Investment. /Photo via Saudi Ministry of Culture and Information's Center for International Communication

The Meras initiative was launched last year as part of the Saudi government’s efforts to facilitate businesses and attract investment by the Executive Committee for Improving the Performance of Business in the Private Sector (Tayseer), an arm of the Ministry of Commerce and Investment.

The objective of the project is to facilitate trade and investment activities in Saudi Arabia, improve the business environment and make it attractive and competitive for domestic and foreign capital.

'Investors from all nations welcome'

A statement from Tayseer stressed that the Meras initiative is not country-specific. Meras would extend help to investors from any nation, including from China, to set up their business in Saudi Arabia, it said.

Meras seeks to do this by providing necessary support and services through an integrated digital platform. “We have been integrating the services of all relevant government entities so that we can serve as a one-stop shop – a unified digital platform – for entrepreneurs and investors,” said Al Obaishi.

“Meras offers services for local and foreign investors, male and female entrepreneurs, as well as middle, small and large enterprises,” he added.

Saudi Crown Prince Mohammed bin Salman (second from left), along with a other panelists, attend the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia, on October 24, 2017. /VCG Photo

The Saudi Ministry of Commerce has said the initiative is going to have a major impact on the Saudi economy. This effort is being supported by organizations such as SAGIA (Saudi Arabian General Investment Authority), Saudi Aramco and MODON, who are offering a variety of incentives – from logistics to partnership – to investors.

The main components of the initiative include Meras comprehensive service centers, Meras e-platform, consolidated access to business services, the interactive business startup guide, providing basic services from the private sector including opening a bank account for the enterprise. “Basically, you get every support at the click of a mouse,” Al Obaishi said.

The kingdom’s Minister of Commerce and Investment, Dr Majid Al Qassabi, called the initiative “a qualitative leap” in the process of reorganizing government procedures through an integrated system.

'Fast lane of full development'

Chinese President Xi Jinping (left) holds a welcome ceremony for Saudi King Salman bin Abdulaziz Al Saud before their talks in Beijing, China, on March 16, 2017. /Xinhua Photo

Ties between Riyadh and Beijing have witnessed a significant boost in recent times following Chinese President Xi Jinping’s visit to Saudi Arabia in January 2016. In a joint communique with Saudi King Salman bin Abdulaziz, Xi announced the elevation of bilateral ties to a comprehensive strategic partnership. Saudi Arabia has been China’s top crude oil supplier for many years.

Reports suggest Saudi Arabia may sell partial stakes of its giant state-owned oil company, Saudi Aramco, to China.

During the Saudi king’s return visit to China in March 2017, both countries signed a memorandum of understanding (MoU) on investment cooperation worth 65 billion US dollars, involving 35 projects.

Chinese Vice Premier Zhang Gaoli later said that relations between China and Saudi Arabia have entered a fast lane of full development. Bilateral deals worth nearly 70 billion US dollars were signed when Zhang visited Riyadh later in August 2017. The agreements covered investment, trade, energy, postal service, communications and media, according to a Xinhua report.

Neom megacity: A likely draw for Chinese firms

A visitor takes pictures of a robot during an exhibition on 'Neom,' a new mega business and industrial city project, in Riyadh, Saudi Arabia, on October 25, 2017. /VCG Photo

The launch of a future transnational megacity named ‘Neom’ last year by the Saudi crown prince is yet another project where Chinese industries can lend their experience in urban planning and development to mutual advantage.

The mega project, estimated to be built at a cost of 500 billion US dollars, will span the territory of Saudi Arabia, Jordan and Egypt along the Red Sea coastline. Robotics and Artificial Intelligence (AI) will be a big feature in Neom.

Saudi Arabia created history by granting citizenship to the advanced humanoid robot Sophia last October, making it the first robot to receive citizenship status anywhere in the world. The announcement was made at the same event where Neom was launched.

Chinese companies will surely look ahead to building some of the infrastructure in the megacity, using AI cutting-edge technology focused on sustainable development.

[Cover photo: Al Faisaliyah Center and Kingdom Center in Riyadh, Saudi Arabia. /VCG Photo]

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