The recent surge in the construction and building materials exhibition held in Riyadh, Saudi Arabia, has garnered significant attention, highlighting a booming trend in international trade and cooperation. The event was unprecedented in its scale, necessitating a temporary expansion of the venue by an additional 10,000 square meters to accommodate the overwhelming number of exhibitors and visitors. Vice President of the Middle East International Exhibition Group, Xiao Feng, confirmed that this was the first time in history that the exhibition had been split into two phases due to capacity constraints.
On February 18, during a launch event in Shanghai, the Middle East International Exhibition Group announced its ambitious plan to host a series of expos dedicated to "New Energy Vehicles and Low-Air Industry" in 2025 across four countries: Saudi Arabia, the United Arab Emirates, Morocco, and Kenya. This initiative indicates a growing trend where Chinese companies are eager to tap into vast potential markets in the Middle East and Africa, particularly as global geopolitical uncertainties shift the focus away from traditional exporters such as American and European markets.
Statistics shared by Xiao Feng revealed that over 800 Chinese enterprises were set to participate in the 2024 exhibition in Saudi Arabia, and this number is expected to double to more than 1,500 by 2025. The impressive participation indicates not only a surge in Chinese interest but also an increasing commitment from countries like Turkey, Germany, Italy, and India to engage with Saudi Arabia. Despite the rising attendance and interest, many exhibitions set limits on the floor space allocated to exhibitors from specific countries. For instance, the proportion of Chinese exhibitors is capped at 15%, illustrating the competitive nature of these expos.
According to market experts, the current pace of growth appears unusually high given the finite demand in the construction sector. Certain types of exhibitions, such as those focused on building materials, have seen a dramatic increase—from one major event per year to five or six annually—an astronomical rise in just a few years. Concurrently, with the fierce competition for booth space, rental fees have risen significantly, often registering double-digit increases year-over-year.
The reference to the Saudi International Construction Material Exhibition emphasizes this rapid evolution, with its first phase concluding on February 18, followed by a second phase scheduled just a few days later—a strategic mimicry of the format established by the Canton Fair in China. Attendees have reported tremendous success; for instance, Yu Xinhua, a foreign trade representative from Zhejiang, revealed that his company surpassed 20 million yuan in potential orders from this expo alone. They fully engaged all personnel and sent over 1,000 products ahead of time. The momentum building from the Saudi market has energized their plans to showcase products at additional fairs in Dubai later in the year.
Beyond Saudi Arabia, other regions such as the UAE and Kenya are demonstrating similar levels of interest. In fact, the Middle East International Exhibition Group noted that their business volume has returned to pre-pandemic levels, a clear indicator of robust recovery and growing excitement in the sector.
Customs data reflects a broader pattern; exports from China to over 160 countries and regions have seen notable growth. For instance, exports to Saudi Arabia and the UAE surged by 18.2% and 19.2%, respectively, reflecting an increasing focus on emerging markets such as Africa and South America. This indicates a strategic shift where diversified export destinations are vital for reinforcing the resilience of China’s international trade.
This year's exhibitions will emphasize what are termed the "New Three Ingredients" of Chinese foreign trade strategy: beyond just new energy vehicles and energy storage, there is also a focus on low-altitude economic developments. This diversification reflects a significant shift in China's export structure.
Strategically, Chinese foreign trade is transforming on various fronts: geographical focus, product offerings, and trade models. There is an evident pivot toward markets in the Global South and Europe, alongside a transition from traditional products to higher-value, tech-driven goods. As Chinese businesses strive for global recognition, there is an increasing trend towards high-value innovations that redefine their roles in global supply chains.
XU Shigang, Secretary-General of the Jiangsu Automobile Circulation Association, noted this year's unprecedented scale of representation from Chinese companies at these exhibitions. He mentioned plans for dozens of firms to collectively market the "Soo Car" brand at the “New Energy Vehicles and Low-Air Industry Exhibition”, hence amplifying their presence and impact in international markets. The initiative is designed not only to promote vehicles but also to establish authoritative standards and reciprocal agreements on certifications and after-sales services in collaboration with local agencies, optimally positioning themselves within intricate regulatory landscapes.
In 2024, Jiangsu Province aims to boost its automobile exports, which numbered around 413,800 units recently, due in part to strategic port access via Lianyungang and Taicang. However, Xu noted the challenges faced by local brands in garnering international recognition, indicating the necessity for enhancing brand development beyond merely functioning as a production hub.
Chinese automotive products are poised for growth, especially as global perceptions of quality improve thanks to favorable international conditions. Xu projects a potential growth rate exceeding 20% for Jiangsu’s automotive exports, reflecting a broader optimism regarding localization, portfolio expansion, and brand enhancement strategies.
In the realm of drone technology, Yi Ying, President of the Shaanxi Drone Technology Service Association, highlighted China’s leading position in the global drone industry. The unique geographical and market opportunities present in the Middle East and Africa bode well for growth in low-altitude economic activities, from logistics to agricultural applications. Participation in international exhibitions stands to bolster the expansion of Chinese drone enterprises within these regions.
Mr. Radouane Chaouki, the Deputy Consul of Morocco in China, emphasized Morocco’s burgeoning role as Africa’s top automotive manufacturing hub. The country is keen on fostering partnerships with Chinese companies to push forward the development of new energy vehicle production through various supportive governmental initiatives.
H.E. Willy Kipkorir Bett, the Kenyan Ambassador to China, spoke on Kenya’s critical role as a stable economic hub with abundant resources and workforce potential, especially relating to the burgeoning sectors of electric vehicles and low-altitude vehicles.
Despite the optimistic trends, Xu cautioned that penetrating the Middle Eastern and African markets remains experimental. A cautious approach and adaptability to local market conditions are necessary prerequisites for scaling participation and investment in these regions.