China has unveiled plans to issue dollar-denominated bonds in Saudi Arabia, marking its first debt issuance in US currency since 2021. The bonds, totaling up to $2 billion, will be sold in Riyadh starting the week of November 11, 2024.
This move reflects the growing economic ties between China and Saudi Arabia, two countries that are deepening their strategic partnership. Over recent years, they have expanded cooperation in areas like trade, energy, technology, and investment, aligning initiatives such as China’s Belt and Road and Saudi Arabia’s Vision 2030.
According to China’s Ministry of Finance, the bond issuance aims to further strengthen the Kingdom’s financial market, aligning with Vision 2030’s objectives of economic diversification. Talat Hafiz, a Saudi economist, highlighted that the issuance will support the development of Saudi Arabia’s financial sector, attracting international investments and fostering economic growth.
This announcement comes as Saudi Crown Prince Mohammed bin Salman and Chinese Premier Li Qiang continue to build on a multifaceted relationship, focusing on trade and investments. With China being Saudi Arabia’s largest trade partner since 2014, the move is expected to positively impact the bilateral economic landscape, which reached $97 billion in 2023.