Persian Gulf wealth funds predicted to allocate up to US$2 trillion of their investments to China by 2030
China is actively strengthening its economic ties with Middle Eastern countries, marked by multi-billion dollar investments from Chinese companies.
During his recent visit to Saudi Arabia, Chinese President Xi Jinping signed agreements worth up to US$50 billion.
These deals include Saudi Aramco’s plan to invest US$3.6 billion in Hangzhou’s Rongsheng Petrochemical and a joint venture agreement between the Saudi Ministry of Investment and Human Horizons, a Chinese electric vehicle company.
The growing economic relationship poses challenges for the US as Saudi Arabia expands its list of allies.
Middle Eastern investors, in turn, are finding opportunities in China, with Middle Eastern capital becoming an alternative for Chinese companies facing restrictions in the US financial system.
Chinese firms, including architecture, engineering, and technology companies, have also been actively engaging with Middle Eastern officials to assist in transforming their economies.
Notably, Huawei Technologies has expanded its presence in the Middle East, contributing to developing the United Arab Emirates’ first 5G network and signing contracts with Saudi Arabia’s state-owned telecom operator.
The deepening relationship also benefits Hong Kong, which offers attractive advantages for executives from both sides.
Efforts are underway to strengthen business ties, with Dubai Chambers establishing an office in Hong Kong to facilitate greater cooperation between businesses in both regions.
The largest sovereign wealth funds in the Middle East are predicted to allocate between US$1 trillion and US$2 trillion of their investments to China by 2030.
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