China has been proactive in liberalizing its capital markets to draw interest from global investors, with Saudi Arabia closely observing these developments. A senior executive from Saudi Tadawul Group highlights how the nation aims to emulate China’s successful strategies in its own market.
Learning from China’s Capital Market Ecosystem
Nayef Al-Athel, the Chief Sales and Marketing Officer at the Saudi Tadawul Group (STG), emphasized that China serves as a prominent benchmark in capital market evolution. He stated, “As we analyze stock exchanges and the broader capital market ecosystem in China, we derive valuable insights.” Every change implemented in Saudi capital markets is gauged against those of other nations, with China often at the forefront of this comparative analysis.
Specifically, Al-Athel pointed to China’s Qualified Foreign Institutional Investor (QFII) program as a significant lesson. Inspired by this model, Saudi Arabia created its own version, which has successfully attracted over 4,500 qualified foreign investors, channeling upwards of $140 billion into its capital market.
Strengthening Trade Relationships
China remains Saudi Arabia’s most significant trade associate, while Saudi Arabia holds the title of being China’s largest trade partner in the Middle East. According to data from China’s Ministry of Commerce, the trade volume between the two nations reached an impressive $108.16 billion in 2025. This comprised $53.42 billion in exports from China and $54.74 billion in imports.
In just the first quarter of this year, the two countries recorded a trade volume of $24.15 billion, broken down into $12.45 billion in exports and $11.7 billion in imports. Notably, China’s primary exports include mechanical and electrical goods, metals, automobiles, textiles, and machinery, while imports mainly consist of crude oil and petrochemical products. Al-Athel expressed optimism that the trade dynamics will continue to flourish into 2026, bolstered by ongoing efforts from both governments to create seamless access between their markets.
Investment Opportunities and Future Directions
Al-Athel noted a growing interest from Saudi Arabian investors in China’s 15th Five-Year Plan (2026-2030), highlighting its clarity and direction for potential investment avenues. This points to a robust future of collaboration, particularly in sectors such as new energy, ultra-high voltage power grids, and advanced manufacturing. Zhang Chenkai, managing director of China Insights Consultancy, echoed this sentiment, identifying key future cooperation domains that include digital infrastructure and financial interconnectivity.
The STG recently hosted the Capital Markets Forum Select Shanghai 2026, which brought together over 400 participants from various sectors. Mohammed Al-Rumaih, CEO of the Saudi Exchange, remarked that the forum signifies the deepening relationship between Saudi Arabia and China. He also expressed a commitment to enhancing the integration of Saudi capital markets with both Chinese and international platforms, a step that promises to unlock further opportunities for mutual growth.
In summary, as both nations continue to learn from each other’s capital market strategies and trade dynamics, the prospects for enhanced collaboration seem bright. With strategic initiatives being examined and implemented, the path ahead for Saudi Arabia and China in the realm of investments looks promising.