Trade | china signs deals to boost trade with middle east

China signs deals to boost trade with Middle East

More than 3,500 Chinese and Middle Eastern business representatives gathered in the Saudi Arabian capital Riyadh earlier this month as China seeks to expand its trade with countries in the region.

Dozens of deals worth billions of dollars were agreed between the various representatives at the 10th Arab-China Business Conference.

The Global Times reported that “the business deals and great enthusiasm for cooperation seen at the 10th Arab-China Business Conference offered the latest sign of closer diplomatic and economic ties between China and Arab countries, following a slew of recent major developments, including the first China-Arab States Summit at the end of 2022 and China’s contribution to the agreement on the resumption of diplomatic ties between Saudi Arabia and Iran.”

On the first day of the conference, 30 investment agreements worth $10 billion were signed, covering a wide range of sectors including technology, renewables, agriculture, real estate, minerals, supply chains, tourism and healthcare, according to media reports.

The deals include a $5.6 billion agreement between Saudi Arabia’s Investment Ministry and Chinese carmaker Human Horizons for a joint venture, and a $266 million deal signed by Saudi Arabia with Hong Kong-based Android developer Hibobi Technology for tourism and other apps.

A final tally of deals signed during the two-day conference was not released as various discussion were still under way to promote China-Arab cooperation in more areas such as healthcare and mining.

“In terms of areas covered, this is all-round cooperation,” said Liu Zhongmin, a professor at the Middle East Studies Institute of Shanghai International Studies University. Liu said that in addition to traditional cooperation in energy, the two parties are expanding cooperation in more areas such as technology.

The conference focused on 16 industry sectors, including finance, agriculture, mining, artificial intelligence and e-commerce. It drew about 2,000 Chinese participants, the largest business delegation to Saudi Arabia to date, according to Reuters.

Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies of Renmin University of China, said that there is great interest from Saudi Arabia and other Arab states in boosting cooperation with China in various sectors other than energy, as they seek to cut reliance on the sector. “There are broad prospects for bilateral cooperation,” Zhou told the Global Times.

Speaking at the event, Abdulla bin Adel Fakhro, Bahrain’s minister of commerce and industry, emphasized the importance of collaboration with China, noting that it is a very important player in their future industrial strategy.

Other participants at the conference said they were optimistic that the evolving economic landscape of Saudi Arabia and Chinese expertise will help drive a huge transformation in the Kingdom and the wider Middle East.

Rupert Hoogewerf, a researcher who founded the Huron Rich List, a ranking of the wealthiest individuals in China, was one of the many business personalities present at the two-day event.

He said Chinese investors appeared keen on exploring the region’s markets, particularly Saudi Arabia. With the emergence of new sectors such as renewable energy, fast-growing real estate and rapid industrialization in the region, there are huge opportunities for Chinese entrepreneurs, he added.

Hoogerwerf said China has a large number of “young companies that are innovative” and are interested in entering the Saudi market.

He said cheap energy prices make setting up bases in Saudi an attractive proposition for manufacturing companies. “And of course, there is a lot of ambition to construct new infrastructure here,” he added.

He added that Chinese companies have the required expertise and willingness to drive growth in the region, particularly Saudi Arabia.

He said he accompanied two Chinese companies that wanted to explore the Saudi market and launch operations there. One is a leading manufacturer of solar panels, Hoogerwerf told Arab News. He said the company is in talks with Saudi partners to start manufacturing operations there. The other company, he said, was a larger real estate company visiting the country for the first time.