Saudi-China ties grow with Xi visit
Big investments at the China-Arab summit: Some USD 50 bn in investment agreements were signed during Xi Jinping’s visit to Saudi Arabia last week, Saudi Investment Minister Khalid Al Falih told Bloomberg, remaining tightlipped on the details. He said that the agreements included both the private and public sectors, yet did not specify whether the provided investment figure involves attending Arab countries or just Saudi.
We know some of the details about Saudi-China agreements: In a sign of warming ties between the two countries, Xi and Saudi King Salman inked a "comprehensive strategic partnership agreement" that will “firmly support each other’s core interests” as well as a
number of business deals, including one that could expand Huawei’s role in the kingdom, and a USD 1.5 bn MoU between Acwa Power and Power China. Xi also said Beijing could begin purchasing oil and gas in CNY, a key step towards internationalizing its currency and weakening the role of the USD in global trade.
Saudi Arabia is on track to be the fastest-growing G20 economy this year after beating expectations to post 8.8% growth in 3Q 2022, the country’s statistics agency said yesterday. The oil exporter said last week that it had raised its full-year GDP forecast to 8.5% and reported its first budget surplus in almost a decade. Saudi Arabia now expects to generate a SAR 16 bn (USD 4.3 bn) surplus next year, almost double previous estimates of SAR 9 bn, according to its latest fiscal outlook (pdf).
The tanker traffic jam at the Turkish straits is beginning to clear: Oil tankers that have been held up at the Turkish straits on the back of a price cap on Russian oil are now being allowed through, Bloomberg reported, citing a shipping official with knowledge of the matter. Ankara had been demanding that insurers of tankers transiting the straits provide proof of cover before the US and UK pushed it to change tack. Some 19 tankers were waiting to be cleared to pass through Bosphorus and Dardanelles yesterday, down from 27 tankers a day earlier.