Saudi Arabia's Capital Welcomes the Bank of China's First Branch

Demonstrating an increasing level of collaboration between Saudi Arabia and China, one of China's four major state-owned banks has initiated its operations in Riyadh.

The Bank of China has established its inaugural branch in the Saudi capital with the objective of promoting the utilization of the yuan, coinciding with a series of trade agreements between the two nations.

Back in June, Jun Tian, who led the bank's launch efforts, conveyed to a segment of the media that the bank's aspiration is to globalize the Chinese currency and envisages the yuan becoming a prevalent currency in commercial financial transactions spanning China, Saudi Arabia, and the wider Arab region.

The bank representative emphasized that with the growing presence of Chinese businesses in regional markets, the adoption of the yuan in their financial transactions with regional counterparts will serve as an additional incentive for them to increase their investments in the region.

It's worth mentioning that Saudi Arabia and China finalized 35 investment deals valued at approximately $30 billion when Chinese President Xi Jinping visited the Kingdom in December of the previous year.

As per a statement from the Bank of China, the inauguration ceremony was attended by Saudi Central Bank Governor Ayman Al-Sayari and Deputy Investment Minister Saleh Ali-Khabti.

During the opening ceremony, ACWA Power, Saudi Arabia's Ministry of Investment, Ajlan & Bros Holding Group, and Zhejiang Rongsheng Holding Group signed memorandums of understanding with the Bank of China (BoC) to promote the internationalization of the yuan and facilitate green financing.

This marks the second Chinese bank's establishment of a branch in Saudi Arabia, following the Industrial and Commercial Bank of China's (ICBC) opening of its first branch in Riyadh in 2015.

Source: Arab News