Saudi Arabia and China Sign US$3.7 Billion in Agricultural and Trade Deals

Saudi Arabia and China formalize 57 agreements worth US$3.7 billion, focusing on agriculture, water, and food security. Explore market opportunities and bilateral synergies.

From May 12 to 14, 2025, Saudi Arabia and China convened in Beijing for the Saudi-Chinese Business Forum, culminating in the signing of 57 agreements and memoranda of understanding (MoUs) totaling SAR 14 billion (US$3.7 billion). Led by Saudi Minister of Environment, Water and Agriculture, Abdulrahman AlFadley, the forum marked a milestone in Sino-Saudi cooperation, particularly across agriculture, food security, environment, and industrial supply chains.

The scope and volume of agreements reaffirm China’s status as Saudi Arabia’s largest trading partner, accounting for 18 percent of the Kingdom’s foreign trade, and align directly with Saudi Arabia’s Vision 2030 and China’s Belt and Road Initiative (BRI).

Strategic areas of cooperation

The agreements target five high-growth sectors: agriculture, water, environment, fisheries, and livestock. Major initiatives include:

• Water recycling and treatment: Enhanced collaboration using advanced technologies such as cloud computing;
• Smart food security city: A city to be built in Saudi Arabia with integrated food laboratories, logistics services, and agro-industrial facilities;
• Marine algae and vertical farming: Infrastructure for seaweed cultivation and vertical farming, increasing resilience to climate challenges;
• Biofertilizers and biofuels: Joint projects to boost Saudi sustainability goals; and
• Poultry, beekeeping, and shrimp breeding: Modern poultry farms, sheep industry enhancement, and shrimp genetics programs.

These deals collectively aim to increase Saudi exports to China, particularly in high-demand sectors like dates, vegetables, fruits, and bottled water.

Read more: China-Saudi Arabia Ties: Trade, Investment, and Opportunities

Saudi Arabia’s agricultural market outlook

Saudi Arabia is highly dependent on imports for food and agri-products due to its arid climate. In 2023, Saudi Arabia imported US$27.3 billion in agri-food and seafood products, with top categories including rice, sheep, sugar cane, and durum wheat. The country’s packaged food market reached US$24.6 billion in 2024 and is projected to grow 7.9 percent annually to US$35.9 billion by 2029.

Consumer preferences are shifting toward health-oriented choices, such as low-sugar, high-protein, and organic products. This trend presents new opportunities for global exporters targeting the Saudi market.

Retail value leaders in 2024 included:

• Baked goods: US$6.7 billion;
• Dairy: US$4.6 billion; and
• Rice, pasta, and noodles: US$3.3 billion.

Consumer foodservice also grew steadily, reaching US$25.9 billion in 2023, in which full and limited-service restaurants held the majority market share.

China’s agricultural market: A net importer with strategic gaps

In contrast, China is the world’s largest agricultural importer. In 2022, the country recorded agri-food and seafood imports worth US$235.9 billion, generating a trade deficit of US$137.4 billion. China’s top suppliers include Brazil, the U.S., and Thailand, means.

Packaged food sales in China hit US$324.1 billion in 2022, with a steady Compounded Annual Growth Rate (CAGR) of 4.5 percent. The health and wellness (HW) segment is particularly prominent, contributing about US$153.5 billion in value sales. Leading HW product claims include sugar-free, probiotic, and immune support.

Despite pandemic-induced volatility, China’s foodservice sector remains vast. In 2022, it generated US$679.3 billion, dominated by independent outlets. This highlights a fragmented but expansive retail and dining ecosystem in China, providing space for Saudi food-tech businesses.

Comparative analysis: Synergies and strategic fit

Import dependency:
Both nations are net importers in key agricultural categories, but Saudi Arabia’s import reliance stems from environmental limitations, while China’s is due to population scale and urbanization. This makes Saudi Arabia a supplier of niche, premium agricultural products, especially in water-efficient and desert agriculture sectors, and China a consumer with volume-driven demand.

Supply chain complementarity:
The establishment of agro-industrial zones in Jazan Region and food security smart cities in Saudi Arabia creates supply chain infrastructure compatible with China’s tech-driven approach to logistics and agricultural processing.

Export focus:
Out of the 57 deals, 26 specifically aim to boost Saudi exports to China. This includes supply agreements for dates, bottled water, and high-value horticultural products, which align with rising health trends among Chinese consumers.

Technology exchange:
Joint ventures in water treatment, cloud computing for agriculture, and biotech applications (for example, biofertilizers) reveal a strong emphasis on technological co-development.

Legal and institutional frameworks

These initiatives align with Saudi Vision 2030, which aims to diversify the economy and reduce oil dependency. The Saudi Ministry of Environment, Water and Agriculture, through specific decrees and policies, is actively supporting private-sector engagement and foreign partnerships. Saudi Arabia’s Public Investment Fund (PIF) has signed a MoU with six Chinese banks to facilitate US$50 billion in joint investments, including agri-related projects.

In China, the Ministry of Agriculture and Rural Affairs and the National Development and Reform Commission (NDRC) regulate foreign agricultural trade and investment, offering incentives under the BRI.

Opportunities for global investors

Global investors and agribusiness stakeholders have a window of opportunity to engage in high-impact, growth-oriented ventures emerging from this Saudi-China agricultural collaboration. One promising area is agri-tech investment, particularly in precision agriculture, smart irrigation, and controlled-environment farming. These technologies are critical to Saudi Arabia’s efforts to overcome climatic challenges and enhance local food production.

Another avenue lies in export-oriented strategies. As China’s health food segment grows rapidly, global firms can leverage Saudi logistics reforms and regulatory alignments to supply premium agri-products such as dates, high-value horticultural produce, and bottled water to meet rising consumer demand.

Joint ventures in processing and manufacturing facilities also stand out, with Saudi Arabia offering land, capital incentives, and policy support while Chinese firms contribute technical know-how and supply chain integration. The synergy between Chinese technological capabilities and Saudi infrastructure development creates fertile ground for collaboration in areas like packaging, cold storage, and food innovation.

Finally, environmental, social, and governance (ESG)-aligned projects offer a long-term play for sustainability-focused investors. From bioenergy generation to sustainable livestock farming and agricultural waste management, these ventures are backed by both governments and align with global sustainability benchmarks, making them commercially viable and socially impactful.

In brief

The Saudi-China bilateral agreements signed in May 2025 represent more than just headline-grabbing figures. They reflect a calibrated alignment of strategic objectives: food security, technological modernization, and economic diversification. For global investors, these deals open new pathways into two of the world’s most dynamic agricultural markets.

(US$1 = SAR 3.75)

Read more: China Deepens Economic Cooperation with Saudi Arabia and UAE in New Energy and Emerging Sectors

• Previous Article Egypt Offers 15% Suez Canal Discount to Regain Trade Flow
• Next Article