Saudia Cargo and China Cargo Airlines have signed a Memorandum of Understanding (MoU) to establish a strategic partnership aimed at boosting trade between Saudi Arabia and China amid shifting global trade dynamics.

The partnership aims to optimise export operations, provide advanced logistics services, and capitalise on growing global market demands, aligning with Saudi Vision 2030 and China's Belt and Road Initiative, ensuring resilient supply chains in today's interconnected world.

In an announcement, Saudia said the MoU establishes a framework for enhanced collaboration, with both parties committed to strengthening interline cooperation, building upon existing and future SPA agreements.

This includes joint marketing and promotional activities, the execution of joint marketing strategies, and a focus on harmonising cargo service operations, pricing, and the provision of specialised cargo handling for sensitive goods.

"This MoU with China Cargo Airlines represents a significant milestone for Saudia Cargo. We are setting our sights on elevating shipping capabilities and broaden our export footprint in the Chinese markets," said Loay Mashabi, CEO and managing director of Saudia Cargo.

"By optimising export operations and delivery advanced logistic services that cater to evolving global market demands, we are confident that this partnership will not only strengthen our position as a leading global cargo carrier but also contribute significantly to the realization of Vision 2030," he added.

Wang Jianmin, president of China Cargo Airlines, said partnerships such as this with Saudia Cargo will generate "substantial value" for our customers, enhance trade connectivity between Asia and the Middle East, and play a key role in the success of both Saudi Vision 2030 and the Belt and Road Initiative.

"To ensure the effective execution of this MoU, we will establish an executive team comprised of representatives from both organizations, fostering seamless collaboration and driving impactful results," he said.

The agreement builds on the success of Saudia Cargo's "Landing in China in 24" campaign, launched last year, which generated significant engagement from key partners and underscored the growing demand for efficient logistics solutions connecting the Kingdom with key Chinese markets.

Saudia Cargo noted that China is its primary merchandise trading partner, with exports reaching 16.1 billion SAR (approximately US$267 million) in 2023, accounting for 17% of the Kingdom's total exports. This highlights the growing importance of this trade corridor and its potential for further expansion.