China and Saudi Arabia: Where Chinese Investment Is Going, Sector by Sector

Saudi Arabia was the top destination for Chinese construction activity in 2024 and again in 2025, according to the American Enterprise Institute’s China Global Investment Tracker. Since 2013, Chinese energy engagement in the Kingdom has reached about USD 40 billion, second only to Pakistan among Belt and Road countries. The relationship is no longer just oil flowing east. It now runs through solar factories, PC and server plants, genomics labs, central bank agreements, and regional headquarters in Riyadh. This guide looks at China and Saudi Arabia sector by sector, with a short view of the wider Middle East, and explains how to read the headline numbers without being misled by them.

How much is China investing in Saudi Arabia?

China’s economic engagement in Saudi Arabia is large and concentrated in construction and energy. The answer depends on what you count, because most of it comes through construction contracts rather than ownership stakes.

The two main trackers measure different things:

• Investment means a Chinese company or fund taking ownership, for example by building a factory or buying a stake.
• Construction means a Chinese contractor being paid to build something, such as a power plant, that it does not own afterwards.

The China Belt and Road Initiative Investment Report 2025 by Christoph Nedopil Wang combines both as “engagement.” It puts Chinese construction contracts in Saudi Arabia at about USD 19.8 billion in 2025, the third highest of any country after Nigeria and the Republic of Congo. The American Enterprise Institute reported that Saudi Arabia saw the most Chinese construction activity of any country in 2025, with energy again the leading industry. Its tracker counts only transactions of USD 95 million or more.

Which sectors attract Chinese investment in Saudi Arabia?

Energy leads by a wide margin, followed by manufacturing linked to the energy transition, technology, and construction. Finance, healthcare, and tourism are smaller in value but show how far the relationship has widened.

Energy

Energy is the core of the relationship. The 2025 Belt and Road report found that Saudi Arabia saw the largest Chinese green energy engagement of any country in 2025, about USD 5.2 billion. It also lists a USD 1.6 billion engagement by Harbin Electric for a gas-fired power plant in the Kingdom. AEI noted a shift inside the sector: in 2025 there was more Chinese investment in solar than in oil in Saudi Arabia.

Capital also flows the other way. In 2023 Aramco closed the purchase of a 10% stake in China’s Rongsheng Petrochemical for RMB 24.6 billion (USD 3.4 billion), alongside a long-term agreement to supply 480,000 barrels of crude oil per day, according to Aramco.

Industrial goods and automotive

Saudi Arabia is using Chinese partners to build its own renewable energy supply chain. In July 2024, the Public Investment Fund (PIF) announced three joint ventures through its Renewable Energy Localization Company (RELC) and the Saudi firm Vision Industries:

• JinkoSolar: photovoltaic cells and modules, with 10 GW of annual production capacity.
• Lumetech, a TCL Zhonghuan subsidiary: solar ingots and wafers, with 20 GW of annual capacity.
• Envision Energy: wind turbine components, including blades, with 4 GW of annual capacity.

PIF linked the deals to the national goal of localizing 75% of the components in Saudi renewable projects by 2030. In mobility, the Ministry of Investment signed a USD 5.6 billion agreement with electric vehicle maker Human Horizons in June 2023 to cooperate on developing, manufacturing, and selling cars. In December 2023, it signed a USD 2 billion agreement with rail manufacturer CRRC covering renewable energy and sustainable mobility.

Technology

The largest completed technology deal is with Lenovo. Saudi manufacturing company Alat completed a USD 2 billion investment in Lenovo in January 2025 through three-year zero-coupon convertible bonds. As part of the agreement, Lenovo is building a 200,000 square meter factory in Riyadh’s Special Integrated Logistics Zone, expected to begin producing laptops, desktops, and servers in 2026, and is setting up its Middle East and Africa headquarters in Riyadh. Huawei and the security technology company Dahua also received Saudi regional headquarters licenses in December 2023.

Financial services and investment

Financial links have deepened at the central bank and sovereign fund level. In November 2023, the Saudi Central Bank and the People’s Bank of China signed a three-year currency swap worth up to 50 billion yuan. In August 2024, PIF signed six memoranda of understanding worth up to USD 50 billion with Agricultural Bank of China, Bank of China, China Construction Bank, China Export and Credit Insurance Corporation, Export-Import Bank of China, and Industrial and Commercial Bank of China, aimed at two-way capital flows through debt and equity. Memoranda of understanding are frameworks, not committed funding, which is why they deserve a separate line in any analysis.

Healthcare and life sciences

BGI is the clearest example. The Saudi government adopted BGI Genomics’ Huo-Yan laboratory solution in April 2020. The company built six laboratories in Riyadh, Makkah, Madinah, Dammam, and Asir and tested more than 16 million virus samples by the end of 2021. BGI later formed a joint venture with Tibbiyah Holdings, part of Saudi Arabia’s Al Faisaliah Group, to set up a medical testing company, and received a regional headquarters license in December 2023.

Real estate, construction, and logistics

Construction is where Chinese companies are most active. AEI reported that Saudi Arabia led for Chinese construction in both 2024 and early 2025. Major Chinese contractors have been licensed to set up regional headquarters in the Kingdom: China Railway Construction Corporation, China Harbour Engineering Company, and China Civil Engineering Construction Corporation all received licenses in December 2023, along with telecom services group China Comservice and logistics company iMile.

Tourism, travel, and consumer markets

Tourism is the newest channel. China’s Approved Destination Status for Saudi Arabia took effect on July 1, 2024, allowing organized Chinese tour groups to visit. Air China, China Eastern, and China Southern announced new direct flights, and Saudi Arabia aims to attract 5 million Chinese tourists by 2030.

How does the government relationship shape Chinese investment?

Government agreements set the direction, and many of the largest deals have been signed at state-level events. During President Xi Jinping’s visit to Riyadh in December 2022, the two countries signed 35 investment agreements worth about USD 30 billion, including an alignment plan between Saudi Vision 2030 and China’s Belt and Road Initiative. A year later, at the China-Saudi Investment Conference in Beijing, they signed agreements worth more than USD 25 billion, and nine Chinese companies received licenses under the Saudi program for regional headquarters, which had licensed more than 200 companies since 2021.

For investment promotion agencies, the lesson is that signing is only the start. Turning agreements into operating companies depends on the experience investors have after the ceremony: licensing, land, permits, hiring, and supplier access.

Client story: Infomineo supported a global consulting firm in assessing investor journeys across 12 sectors, identifying 600+ pain points and benchmarking global best practices to drive competitive advantage. Read the client story.

How does Saudi Arabia compare with the rest of the Middle East?

Saudi Arabia is the largest single destination, but the whole region has become a priority for Chinese builders. The Belt and Road report ranked the Middle East second worldwide for Chinese construction in 2025, at USD 39.4 billion. In the first half of 2026, the Middle East topped the list with USD 36.5 billion, up 98.4% and a record for any first half since 2013.

The US-Iran war has added risk. AEI called it “an obvious obstacle” for Chinese investment and construction and noted that some projects in the Middle East are on hold. Even so, it described China’s global activity in the first half of 2026 as roughly stable, with construction concentrated in financially sounder economies led by Middle East energy exporters.

How should you read Chinese investment announcements?

Headline figures on Chinese investment in Saudi Arabia often mix very different things. Before using a number in a strategy or market entry decision, check four points:

1. Is it investment or construction? A USD 1 billion construction contract and a USD 1 billion factory stake have very different implications for long-term presence.
2. Is it signed, closed, or operating? Memoranda of understanding and framework agreements are not committed capital. The Lenovo investment was completed. Several other announced deals are agreements whose progress is harder to confirm from public sources.
3. Which tracker is it from? AEI excludes deals below USD 95 million, while the Belt and Road report counts engagement across investment and construction, so their totals are not comparable.
4. Which way does the money flow? Some of the largest headlines, such as Aramco’s stake in Rongsheng, are Saudi investments in China.

What does this mean for companies and consultancies?

For foreign companies, Chinese competitors and partners are now established in Saudi energy, manufacturing, technology, and construction, often in partnership with Saudi state-backed entities such as PIF and its companies. For Chinese companies, regional headquarters in Riyadh have become a common route into the Kingdom. For consultancies and investment promotion bodies, the work is increasingly about telling announced deals apart from real activity, sector by sector. For a wider view of the Kingdom’s economic shift, see our articles on Saudi Arabia’s non-oil economy and Saudi Arabia’s AI opportunity, our earlier analysis of China’s investment in Africa, and our guide to market entry strategy.

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Frequently Asked Questions

How much has China invested in Saudi Arabia?

It depends on what is counted. The China Belt and Road Initiative Investment Report puts Chinese construction contracts in Saudi Arabia at about USD 19.8 billion in 2025, and cumulative Chinese energy engagement since 2013 at about USD 40 billion. Most of this is construction rather than ownership stakes.

Which sectors does China invest in most in Saudi Arabia?

Energy leads, including oil, gas, and increasingly solar, followed by renewable energy manufacturing, technology, and construction. Finance, healthcare, and tourism links are smaller in value.

Is Saudi Arabia the top destination for Chinese investment in the Middle East?

For construction, yes. The American Enterprise Institute reported that Saudi Arabia led for Chinese construction in 2024 and was the top country for Chinese construction activity in 2025.

What is the link between Vision 2030 and the Belt and Road Initiative?

In December 2022, Saudi Arabia and China signed an alignment plan between Saudi Vision 2030 and China’s Belt and Road Initiative during President Xi Jinping’s visit to Riyadh, alongside 35 investment agreements worth about USD 30 billion.

Has the US-Iran war affected Chinese investment in the Middle East?

Partly. AEI reported in July 2026 that some Chinese projects in the Middle East are on hold, but described China’s overall investment and construction in the first half of 2026 as roughly stable. The Middle East still recorded record Chinese construction engagement in that period.