Saudi Arabia’s growing construction market is proving to be an excellent business opportunity for both China building material firms, local experts and Chinese media reported Saturday.
The China Daily newspaper reported that the country would likely be the source of a great number of materials, as the Gulf state is expected to embark on $100 billion worth of infrastructure projects by 2016.
Saudi economist Jamal Banoon told Al Arabiya.net on Saturday that less expensive materials from China will greatly boost the boom.
“China’s building material companies in the Saudi market will help those with low incomes to build their houses on less expensive budgets. They would also add to the total market value of real estate in the Gulf region, if companies started to rely on Chinese building material for future projects, ” Banoon said.
China’s business and government officials are expected to promote the country’s building materials and other construction-related goods in Riyadh this December, at the Third China Commodities Expo-Saudi Arabia, the newspaper said.
“The fair will help promote brand recognition for made-in-China products and hopefully help us build a future platform for suppliers and buyers,” Chen Feng, chairman of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers and Exporters told the newspaper.
Chen expected more than 3,000 professional Saudi buyers to attend the event, it added.
Xie Zhongmei, director of the Department of West Asian and African Affairs at China’s Ministry of Commerce, told the newspaper that trade between the two countries grew nearly 30 percent year-on-year to $38 billion in the first half this year.
Wie estimated annual trade between the two countries would reach $70 billion this year, with an annual growth rate continuing at 30 to 40 percent.