China has been Saudi Arabia’s largest trading partner for 13 straight years, and the relationship is now showing up in capital on the ground. In 2024, Chinese FDI stock reached SR31.1 billion ($8.2 billion), up from SR24.1 billion ($6.4 billion) in 2023, representing a 28.8% jump.
This growth shows up in where capital is going. Companies are establishing regional headquarters in Riyadh, scaling EV production toward the goal of 500,000 vehicles a year by 2030, and bringing cloud capacity online with Huawei.
The real question is, how does this translate into tangible opportunities on the ground for Chinese companies expanding to Saudi Arabia?
Manufacturing Growth Draws Chinese Firms to Set Up RHQs in Saudi Arabia
One of the most notable developments has been the rising number of Chinese RHQs relocating to the Kingdom. As of early 2025, 35 Chinese companies have set up RHQs in Saudi Arabia.
Following a similar move, Chinese PC maker Lenovo has just announced plans to establish its RHQ in the Kingdom, a striking sign of Saudi’s continued appeal as a corporate hub for industry-leading Chinese firms.
This trend is strongly linked to the growth of the Kingdom’s manufacturing sector, which contributed 15.57% of GDP in 2024, well above the historical average of 9.1%.
Saudi’s rising attractiveness stems from its export-driven industrial base, boosted by growing investments in manufacturing, production-linked incentives, and domestic content requirements.
Below are the top megatrends shaping Saudi’s manufacturing sector:
- Strengthening Logistics & Connectivity: The Saudi infrastructure development plan is mainly focused on creating a multimodal logistics system that operates in a coordinated way to improve connectivity, facilitating better movement of goods and materials. Hosting Expo 2030 and the 2034 FIFA World Cup offers opportunities for companies in logistics.
- Localization Push: The Kingdom is building a self-sufficient industrial base, aiming to reach 36,000 factories by 2030, with 12,000+ already live. With initiatives such as, the Made in Saudi program, and LCGPA rules, major tenders favor local content, creating steady demand for domestic producers
- Growing EV Manufacturing Base: Saudi Arabia targets production capacity of 500,000 EVs annually by 2030, which makes it an ideal ground for the operation of Chinese automakers.
These positive developments in the manufacturing sector are creating a robust pipeline for Chinese firms for several years to come. The recent wave of corporate headquarters relocations not only leads to increased job creation and economic growth, but it sends a strong signal that Saudi is well on its way to be among the world’s top 15 economies by 2030.
What Makes Saudi Arabia a Hotspot for Chinese Investments
Driven by the influx of RHQs migration and rapid business expansions, Chinese investment in Saudi Arabia has maintained fast growth. Chinese FDI in Saudi spans all sectors. In fact, automotive and mining were among the key sectors clocking in high investment amounts in 2023, attracting $5.6 billion and $5.2 billion, respectively.
The momentum gathers steam in the financial services sector. A standout moment was the $50 billion in MOUs signed by the PIF and leading Chinese financial institutions to boost two-way capital flow via debt and equity investments.
Most recently, fintech giant Ant Group has set up a local presence to provide digital payment solutions and financial services for Saudi merchants. Construction is another highlight of the increased Chinese investor presence in Saudi.
China State Construction Engineering Corporation (CSCEC), the world’s largest construction firm, and China Harbour Engineering Co. are deeply involved with large commercial complexes and residential projects in various giga projects like Diriyah Gate.
Additionally, Chinese investments in Saudi Arabia demonstrate a clear concentration in technology. Firms like Huawei and Alibaba are contributing to the development of 5G networks, smart city applications, and large-scale data centers.
High-tech sectors such as semiconductors have also attracted significant investor interest. In 2023 alone, Chinese investments reached $4.26 billion in Saudi semiconductor markets. Such a crucial trend clearly demonstrates the rise of the Kingdom as a pivotal player in the global chipmaking industry.
The ongoing prominence of China in Saudi’s FDI landscape strengthens its position as a magnet for corporate headquarters that drive substantial, long-term investments.
This is anticipated to create a positive uptrend in the number of Chinese companies moving ahead with their plans of company formation in Saudi Arabia.