Saudi Arabia looks East: China gains expanding opportunities with the right market approach

Globe showing the Middle East
hina’s agri-food tech players stand to benefit from the kingdom’s growing demand for scalable, climate-adapted solutions – but only if they can shift their long-held mindsets. (Getty Images)

A Saudi agri-food expert says China’s agri-food tech players stand to benefit from the kingdom’s growing demand for scalable, climate-adapted solutions – but only if they can shift their long-held mindsets.

For years, the Saudi agri-food tech sector has looked to Western countries such as Spain, the Netherlands, the US and the UK, for advanced agricultural technologies.Today, Saudi players have turned their gaze towards China, whose innovation ecosystem has matured rapidly to deliver solutions tested across diverse climates and geographies.

“From an agricultural technology perspective, what has worked there has often worked for many people, especially considering the different climates, microclimates, and geographies. China is incredibly diverse. Many solutions are already both generalised and localised, whether in the supply chain or technology deployment,” said Andrew Yip, Middle East Chief Representative of the World AgriFood Innovation (WAFI) committee.

Furthermore, China and Saudi Arabia share notable similarities in how economic and technological initiatives are planned and executed, Yip told AgTechNavigator.

In China, government directives such as the Five-Year Plans guide industrial and sectoral development, while in Saudi Arabia, Vision 2030 and its associated mandates serve a similar top-down planning function.

This centralised approach means that companies familiar with China’s planned economy can more easily navigate the Saudi market.

Service over price

To succeed in Saudi Arabia, Yip said, Chinese companies cannot rely on their typical business approaches, which are unlikely to work effectively in the kingdom and the wider region.

“Chinese companies need to understand that Saudi is focused on long-term growth, with planning set over a very long horizon. Naturally, the decision cycles are typically longer as well. Many Chinese companies still operate with an old mindset. They think, ‘I have cheap products, I’ll come here and make a quick profit.’ But that approach no longer works.”

While Chinese companies often rely heavily on the price–quality ratio to compete, Yip emphasised that this metric alone is no longer sufficient in Saudi Arabia’s agrifood sector.

Buyers are increasingly prioritising the service-to-quality ratio; marginal differences in price are far less important than demonstrating reliability, responsiveness, and commitment to long-term partnerships.

“For example, are you responsive, are you adaptive to client demands and are you are you willing to really go the extra mile to really demonstrate at client site? Price alone is never enough,” said Yip.

The paradox

Decision-makers in Saudi Arabia can move quickly in early-stage engagements. They tend to expect rapid responses to inquiries, site visit requests and technical information.

“Often times they receive so much interest from all over the world and may not have to explore all of them. Yet, they can make decisions very quickly. It is commonplace that when you first meet a potential client or partner, they will ask for all your materials, want to learn about your projects, and request visits – all of this can happen very quickly. If you don’t keep up, you risk missing out,” said Yip.

He added: “You need to be on WhatsApp 24/7, because they might ask a question at night and they expect the answer yesterday. Even if it takes them longer to make a final decision, if you don’t provide information at the right moment, they’ll think you’re not serious and move on to someone else.”

In this aspect, Chinese companies should not face much difficulty keeping up as they are also quick when it comes to turnaround.

“I don’t worry about Chinese when it comes to this because they usually have very good customer service and are also very quick. But they should know that it does not mean it will translate into a quick turnaround in signing contracts,” said Yip.

Wasta vs Guanxi

In China, relationships revolve around guanxi, which emphasises who you know and how you use those relationships strategically.

In the Middle East, there is the concept of wasta, which is both similar and different to guanxi.

Yip explained: “It’s also about relationships, but slightly different: it’s less about who you know and more about helping others, often out of a sense of obligation or service, so that they can help you in return. I would say wasta is even more active. You really need to help others to create opportunities for yourself. Traditionally, this comes from a nomadic context, where commerce and survival depended on the grace of others. It fosters a sense that your survival is intertwined with theirs.

“These two concepts are similar, but you have to be careful with how you use them. You should leverage these relationships to achieve greater good, not for narrow personal gain. In the traditional Chinese view of guanxi, the mistake is to treat it as a simple exchange of private benefits.”