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AIIB will hand out loans from mid 2016, according to Jin, adding that the bank will keep in close contact with other multilateral and bilateral development organizations.

"I think there is a great interest of the two friendly peoples. It is an interest for all of us today to build mutual relations in the economic, commercial, financial and military fields, and even in the social aspects," Abadi concluded.

Saudi Arabia is China's biggest foreign supplier of crude oil and biggest trading partner in West Asia. Two-way trade reached 69.1 billion dollars in 2014, growing by 230 times over that of 1990, when the two countries established diplomatic ties.

To promote the industrialization of the Middle East, Xi announced a 15 billion U.S. dollar special loan for production capacity cooperation and infrastructure construction, 10 billion U.S. dollars of commercial loan to support production capacity cooperation, and 10 billion U.S. dollars of concessional loans.

The conference came at the eve of the Chinese President Xi Jinping's five-day tour to the region, including Saudi Arabia, Egypt and Iran.