RIYADH: Saudi Arabia’s Investment Minister, Khalid al-Falih, has stressed the importance of protecting emerging Gulf industries in the ongoing negotiations for a free trade deal between China and the Gulf Cooperation Council (GCC).
Speaking at the Arab-China Business Conference in Riyadh, the minister emphasized the need to enable and empower Gulf industries to export, while ensuring market economics and some form of protection for these industries.
Minister al-Falih stated, “We hope all countries negotiating free trade deals with us understand the necessity of protecting our new, emerging industries. We need to provide them with market access and ensure some level of protection.” Although he did not provide specific details, his remarks highlighted the importance of safeguarding the growth and development of these industries.
Saudi Arabia Optimistic for GCC-China Free Trade Deal
Minister al-Falih expressed optimism about the progress of the negotiations and hoped for a prompt conclusion. He remarked, “We have come a long way, and the leadership from both sides is showing a willingness to reach an agreement.”
As Saudi Arabia and the United Arab Emirates (UAE) strive to boost domestic economic growth and non-oil exports, the two largest economies in the Gulf region have launched new industrial strategies. Saudi Arabia, in particular, is focusing on developing sectors such as domestic manufacturing, mining and minerals, and advanced technology.
In any free trade deal, the Gulf Cooperation Council countries, with Saudi Arabia as the largest economy, population, and workforce, are seeking to diversify their economies beyond the energy sector. Minister al-Falih reiterated the importance of exploring sectors other than energy for the GCC states.
The Arab-China Business Conference, hosted by Saudi Arabia, is the first such forum since Chinese President Xi Jinping’s landmark visit to the Gulf state, which China described as the most significant diplomatic initiative in the Arab world. The conference comes shortly after US Secretary of State Antony Blinken’s visit to Saudi Arabia, as the United States aims to mend strained ties with its closest Middle Eastern ally.
