Saudi Arabia and China have signed an agreement to establish a 12-factory industrial city and logistics zones for construction materials amid thriving ties between both countries.

The cooperation pact was co-signed by the state-owned National Housing Company (NHC) and China’s CITIC Construction Group as part of an official visit by Saudi Minister of Municipal, Rural Affairs and Housing Majed Al Hogail to China.

According to NHC, the pact aims to ensure swift implementation of housing projects in Saudi Arabia in line with the highest world standards by attracting major manufacturers of construction materials and making use of Chinese expertise in the field.

The agreement, it said, would maximise economic and development impact of the real-estate sector, develop residential projects, upgrade their quality and consolidate transformation of the Saudi construction sector through such industrial cities and logistics zones.

Moreover, the pact is set to make room for local medium and small-scale factories to expand, provide direct production lines for NHC projects, develop the Saudi industry of building materials and create jobs in the field.

Al Hogail hailed the agreement as a “turning point” in the region. “This partnership will contribute to localise building and construction products inside the kingdom to lend the necessary support for housing projects,” the minister said in an X post.

Earlier this week, the Saudi Ministry of Municipal, Rural Affairs and Housing signed several agreements and memorandums of understanding with a number of major Chinese construction companies with a view to utlising investment openings available in the kingdom’s real-estate sector.

In December 2022, Chinese President Xi Jinping made a landmark visit to the kingdom where he met King Salman bin Abdulaziz and Crown Prince Mohammed.

During the visit, Xi said that his country would offer thousands of opportunities to teach the Chinese language in the Gulf countries.