(Yicai) Nov. 12 -- Ajlan & Bros Holding Group, one of Saudi Arabia's largest investment conglomerates, made its debut at the China International Import Expo this year, with the aim of supporting more Chinese companies in expanding into the Middle East and North Africa region.

At the recently concluded trade show in Shanghai, Ajlan & Bros showcased its partnerships with 11 Chinese businesses in exploring MENA markets, ranging from logistics and artificial intelligence to gaming, financial services, mining, and advanced manufacturing.

“The CIIE has long been recognized as a premier platform for fostering international trade and economic cooperation,” Mohammed Al Ajlan, deputy chairman of Ajlan & Bros, told Yicai.

“We look forward to leveraging this platform to explore new opportunities in the Chinese market, helping more outstanding Chinese enterprises establish a presence in Saudi Arabia and the MENA region, thereby fostering economic diversification in those areas,” he said.

The CIIE is the world's first national-level import-themed expo. Held annually, it promotes international trade and economic cooperation by bringing together thousands of buyers and suppliers from around the world. More than USD80 billion of tentative deals were agreed at this year’s six-day event, which was held between Nov. 5 and 10.

“Saudia Arab is a very open market,” a senior representative from Ajlan & Bros told Yicai. In contrast to the trade barriers that often exist between China and Europe or the United States, Saudi Arabia offers a more open market environment, he said.

Whether adhering to European, American, or Chinese standards, the kingdom maintains a welcoming stance towards international products and services, which offers customized solutions tailored to local needs, the person added.

Besides, Saudi Arabia is a core country in the Arab and Islamic worlds, sharing a common language and culture, the person said. “If you can establish a strong foothold in Saudi Arabia, it can serve as your base to expand into other markets,” he said.

‘Unique Advantages’

“Many industries can find their unique advantages in the MENA region,” Ajlan pointed out, naming a few sectors such as construction and infrastructure. Saudi Arabia is one of the world's largest construction markets, he said, adding that government-backed mega projects under Vision 2030 create considerable demand for infrastructure development.

Unveiled in 2016, Vision 2030 is a government plan to diversify the Middle Eastern country's economy, society, and culture.

In the mining sector, Saudi Arabia's rich mineral resources, including gold, copper-zinc ore, and rare earth elements, offer significant opportunities for Chinese expertise in mineral exploration, equipment manufacturing, and green mining technology, Ajlan noted.

A notable example is Ajlan & Bros' ongoing collaboration with Haikou-based Hainan Mining to set up a lithium hydroxide processing plant, which is strategically positioned for global market access.

The kingdom's young, tech-savvy population with high disposable income presents major opportunities in entertainment, gaming, and e-sports industries, Ajlan also pointed out. “The demographic dividend, combined with strong consumer spending power, creates ideal conditions for digital entertainment services,” he said.

Seemless Market Bridging

Ajlan & Bros has established a number of successful pathways for Chinese companies to enter the MENA market, primarily through joint ventures, supplier relationships, and strategic partnerships, according to the senior representative.

In the healthcare sector, a noteworthy example is the 2022 joint venture with Shanghai-headquartered General Healthy on smart pharmacy systems. “China's automated pharmacy technology, proven in high-traffic first-class hospitals, aligns perfectly with Saudi Arabia's healthcare digitalization needs,” he said.

Recent delegations from Saudi hospitals visited Chinese medical facilities to evaluate these automated systems firsthand. “The practical demonstration of these systems in Chinese hospitals has significantly boosted Saudi stakeholders' confidence in the technology,” the person added.

Ajlan said that in the fintech sector, his conglomerate’s joint venture with Chinese payment technology provider Swiftpass, which is called Tiqmo, has secured an e-wallet license from the Saudi Central Bank and has signed strategic cooperation agreements with global financial institutions including MasterCard and Arab National Bank. Tiqmo's mobile application has exceeded one million users within just six months of launch, he said.

The group's mining venture with North Mining secured a major exploration contract worth SAR110 million (USD29.3 million), including SAR15 million (USD4 million) earmarked for community investment and development programs, Ajlan said, adding that the project exemplifies Ajlan & Bros's commitment to combining business growth with social responsibility.

Ajlan & Bros also facilitates market entry through its subsidiary network, the senior representative said. Its advertising arm, Ten-X, has successfully supported the launch of Chinese firms in Saudi Arabia. "We understand both markets intimately, which allows us to effectively localize Chinese business models for the Saudi market," he noted.

Ajlan said that recent strategic partnerships announced this year include collaborations with NetEase Games on gaming market development, Baishan Cloud on edge computing services, and HNA Aviation Group's DeerJet International on premium aviation services.

Future Prospects

“The deep integration of China's Belt and Road Initiative with Saudi Arabia's Vision 2030 has created a strong foundation and extensive opportunities for mutually beneficial cooperation between the two countries' trade and enterprises,” Ajlan pointed out, particularly in emerging sectors such as the digital economy and clean energy.

Announced in 2013, the BRI is a massive international infrastructure project aimed at enhancing trade, investment, and economic integration between China and participating countries across Asia, Africa, Europe, and beyond by land and sea.

Saudi Arabia's push for economic diversification aligns well with Chinese expertise in financial services, advanced manufacturing, AI, fifth-generation technology, healthcare, and logistics, Ajlan said.

As a pivotal gateway for Chinese businesses entering the MENA region, Ajlan & Bros looks forward to partnering with more leading enterprises, helping them establish a presence in the kingdom and the wider region, thereby fostering economic diversification in those areas, he said.

The bilateral economic relationship continues to strengthen, with China maintaining its position as Saudi Arabia's largest trading partner since 2013. Two-way trade exceeded USD100 billion last year, equal to about 90 percent of the kingdom's trade with G7 countries. 

Editor: Tom Litting