Investment ties between China and the Middle East to get stronger: Saudi Arabia’s EWPartners
Investment firm backed by Public Investment Fund of Saudi Arabia says ties to strengthen thanks to global trade uncertainties
“De-globalisation, global trade uncertainties and the juggling of supply chains around the world incentivise or motivate more Chinese companies and entrepreneurs to consider alternative options [like] alternative supply chain and factory arrangements,” said managing partner Cliff Chau in an interview on Thursday.
Many established mainland companies have found the Middle East to be attractive, as the region seeks business opportunities outside the oil and gas industry and maintains strong diplomatic ties with China, he said.
“Such [economic] diversification … provides enormous opportunities for foreign companies to penetrate and access the market [in a way] that was not previously available,” Hong Kong-based Chau said. “We are seeing a lot more inquiries [about] how we can help them diversify their supply chains, capabilities and manufacturing facilities.”
In addition to e-commerce and fintech, Chau said he saw opportunities in smart manufacturing.
“The level of automation has increased dramatically over the last several years,” Chau said, adding that smart manufacturers were more likely to consider the Middle East as a result. He said Middle Eastern countries wanted to attract these kinds of companies so they could make goods there and engage in importing and exporting.