Exploring new horizons

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China and India are two countries that may play a crucial role in the near future of Saudi Arabia and the Gulf countries in general.
One fundamental factor can change the equation because these two countries represent the largest growing markets in the world at a time when other major markets are becoming saturated or shrinking in terms of oil imports. It is obvious that Riyadh is turning toward these markets, as revealed by Deputy Crown Prince Mohammed bin Salman’s two successive visits to China, trying to cope with changes and keep up with the development of economic resources.
There are also many other industrial and oil-producing countries that are setting their sights on the Chinese and Indian markets — they are all seeking a share of these markets. However, what distinguishes Saudi Arabia is that the latter is the largest, cheapest and most equipped oil reservoir in the world and there are no obstacles or sanctions that could impede its progress, unlike Iran for example.
Will Saudi Arabia be able to successfully adopt a strategy of shifting toward the East after decades of relations with the West? At this stage, the restrictions that marked the Cold War era no longer exist.
Back then, the countries that were lucky enough to make the shift used to take risks when trying to change their political approach. Turning toward the Chinese and Indian markets is not purely a political decision, as relations with the West will remain strong, especially as the westerners are still the most politically influential people in the region. Special relations with both China and India will enrich Saudi influence and its strategic importance in the West mainly on both the regional and international levels.
Investing in a large-scale economic project with China and India is not an easy task — it opens up a whole new world to Saudi Arabia. It requires a huge leap to be taken, with great governmental potential. Companies, banks, funds, chambers of commerce, bilateral partnerships, businessmen, research and university centers and dedicated governmental institutions will all play a major role in it. China is mainly represented by one company, therefore, it is more organized as its governmental devices and official institutions are the actual bodies managing foreign relations and transactions.
The recently signed trade agreements between Saudi Arabia and China have revived ancient trade routes between Arabs and China that were represented in the maritime Silk Road and the incense trade route that crossed the Arabian Peninsula.
The Silk Road or Silk Route was opened around 3,000 years ago with the transfer of Chinese silk to the Arabian Peninsula and trade exchange with Arab goods that included incense, frankincense and pearls. It is opposite to the Khraibeh port, north of Duba on the Red Sea, and the Aqeer port on the Arabian Gulf, the most famous halting areas for ships carrying Chinese silk.
The Silk Route was named after the roads that were used by convoys and ships between China and Europe with a length of 10,000 km during the Han dynasty in China around 200 B.C.
It was named in 1877 by a German geographer because Chinese silk was representing the largest proportion of trade through this road. The maritime silk stems from the port of Canton in China and crosses the Chinese seas before wrapping around the coast of the Indian subcontinent to enter the seas surrounding the Arabian Peninsula.
It is divided into two branches — one to the north in the Arabian Gulf waters to reach the Transoxiana and Persia and the other heading west toward the coast of Yemen and the Hijaz and passing through the Red Sea.
This highlights the fundamental role of Saudi Arabia by virtue of its geographical location, which is also in line with Saudi Vision 2030 that focuses on the exploitation of the geographical location of the Kingdom.
As for India, it mainly relies on the private sector to manage its affairs. Our region has lived on the existing oil trade model in its relations with major consumer markets like Britain and, later on, the United States. It is still the main factor in our dealings with China and India, but today we are aiming for wide-ranging relations. China and India are the only countries that can compensate for shortages in the western markets, such as the decline in oil demand in the United States market. The two countries offer a great opportunity for the objectives of the government to boost the country’s economy, which requires more creative thinking and a greater dependence on the flexible and fast-moving private sector to play an augmented role.
Both China and India do not mix politics with trade, although China is one of the major arms exporters in the world and Saudi Arabia had a positive experience with China in the 1990s. As long as the two Asian countries do not get involved in the continued regional wars and alliances, they will preserve their special ties with major countries.