Looking ahead to Saudi Arabia's upcoming National Day on Monday, Saudi Arabian Ambassador to China Yahya Al-Zaid sat down with China Daily reporter Zhou Wa to talk about ties between Beijing and Riyadh as well as to contemplate the future of bilateral cooperation.

Saudi-Chinese relations have developed through strategic cooperation in all areas with the support of leaders from both countries, the ambassador told China Daily, saying he expects the partnership to reach new heights in the future.

"The Kingdom of Saudi Arabia has distinct, strong relations with China at all levels. For more than 1,000 years, the Silk Road facilitated trade, exchanges and communication between China and the inhabitants of the Arabian Peninsula," said the ambassador.

Since China and Saudi Arabia established formal diplomatic relations in 1990, the two countries have enjoyed a favorable relationship.

"It has been a relationship of friendship and cooperation between the two countries in various fields, and it has made great strides since then," Al-Zaid said.

"Currently, the excellent relationship between the two countries is developing rapidly and comprehensively. The countries have become partners in the areas of culture, energy and economy."

The main area of cooperation remains the energy sector. Saudi Arabia is the leading source of China's oil imports.

Cooperation in the oil sector "generates a boost to trade and investment opportunities between the two countries," the ambassador said.

China's contribution to a number of major infrastructure and energy projects is creating new space for cooperation.

These cooperative programs are represented by Sinopec, China's top oil producer, and the Saudi Arabian companies Aramco and SABIC, which refine oil and distribute petrochemical products in China.

The provision of Chinese consumer products to the Saudi market and Saudi Arabian investment in China, especially in fields of textile and commercial exchange, also help to boost economic cooperation.

Saudi Arabia is the largest and most important trade partner of China in Western Asia.

In the past year, the volume of trade exchange between the two countries totaled $73.27 billion, an increase of 13.9 percent compared to year 2011.

The ambassador said he sees great potential for foreign investment in his country because "the kingdom has a strong economy and stable markets. It is one of the largest countries for attracting investment and first in terms of registering property".

The Supreme Economic Council of Saudi Arabia, headed by King Abdullah bin Abdulaziz, is responsible for economic policy and the supervision of foreign investment.

The council has encouraged and sought agreements with a number of states with regard to the promotion and protection of investments and the avoidance of double taxation, the ambassador said.

It has also developed several programs to attract foreign investors, beginning with the establishment of the Saudi Arabian General Investment Authority.

The authority is the body responsible for issuing investment licenses and coordinating with other government agencies regarding the foreign ownership of companies and land.

It also negotiates the removal of restrictions on the transfer of capital in addition to granting exemption from personal income taxes.

"Foreign investors are given the right to benefit from local financial institutions and international organizations," Al-Zaid said.

The ambassador said there are many areas for which Chinese investors are best suited, especially in the parts of the country that are the least developed.

The Saudi government offers tax concessions in these regions, including Jizan, Najran, Baha and Hail.

"The opportunities for industrial, commercial and residential and service investments are bountiful," Al-Zaid said, adding that the most promising field is mining.

"There are no restrictions on the exchange and transfer of foreign currency or the transfer of capital and profits abroad," he said.

The geographical location of the kingdom makes it easy to access to the markets of Europe, Asia, and Africa, he added.

Meanwhile, the ambassador also said the increasing communication between individuals in the two countries is promising, citing the remarkable expansion of bilateral cultural and scientific exchanges.

Saudi students studying in China number more than 1,300. Moreover, 400 Chinese students are also present in the kingdom's universities.

There has also been an increase in the exchange of scholarship and research as well as the number of visiting professors between the two countries.

The Saudi government offers 200 scholarships to Chinese students, and the number will increase to 400 scholarships by next year.

This year, China was a guest of honor at the Janadriya festival, which normally falls during the month of February or March and highlights the culture and heritage of the country. Saudi Arabia was a guest of honor at the Beijing International Book Fair.

With regard to tourism, Al-Zaid said his country is "home to Arab culture and traditions full of authentic customs and breadth with a diversity of opportunities that appeal more to tourists' tendencies and desires."

He added that his country is also characterized by religious tourism.

The Holy City of Mecca annually receives millions of pilgrims from every country of the world, including China.

Last year more than 14,000 Chinese pilgrims visited Mecca, whereas no more than 1,500 pilgrims visited in 1990, the ambassador said.

Additionally, Medina is Islam's second city of great importance. It houses the Mosque of the Prophet, his grave, the graves of his family and his companions who were responsible for the spread of Islam.

To expand future trade and economic partnerships and promote exchanges and cooperation in international and regional issues, the ambassador called for deeper political ties and more support for high-level official visits between the two countries.

The two countries should also make more of an effort to follow up on the implementation of cooperative agreements and creation of mechanisms in various fields of common interest, he added.

Contact the writer at zhouwa@chinadaily.com.cn

Saudi Ambassador to China Yahya A. S. Al-Zaid

(China Daily USA 09/23/2013 page10)