by Oui
Thu Nov 21st, 2024 at 07:44:31 PM EST
China to Issue Dollar Bonds in Saudi Arabia, Deepening Financial Ties | MENA |
Shift from Hong Kong to Saudi Arabia
China usually issues US dollar bonds in Hong Kong. However, choosing Saudi Arabia for this sale signals a deepening partnership between the two countries. Crown Prince Mohammed bin Salman seeks Chinese investment to support his Vision 2030 initiative, aimed at reducing Saudi Arabia's oil dependency.
Saudi Arabia's Growing Investment Appeal
Saudi Arabia is increasingly relying on international dollar bond sales to fund its large-scale projects. This year, it has become one of the biggest emerging market issuers. Meanwhile, China is eyeing major Saudi construction contracts as its property market faces challenges at home. Saudi Arabia's solar energy boom has also attracted Chinese companies specializing in solar panels and batteries.
Strengthening Financial Partnerships
The decision to sell debt in Riyadh is part of a broader strategy to strengthen ties with Saudi Arabia. A senior banker at a Chinese state-owned lender explained that this move is part of China's growing influence in the Middle East. Although Russia surpassed Saudi Arabia as China's main oil supplier last year, Saudi Arabia remains a crucial exporter. The kingdom earns dollars from crude exports, which can be reinvested in dollar-denominated Chinese bonds.
China's Dollar Bond Sale Inundated With $40 Billion of Bids | BNN Bloomberg |
Joe absent on G20 Family Photo In Brazil
Early afternoon siesta, out of his comfort zone?