With the transformation and upgrading of China’s economy and the promotion of digital technology, going to sea has become an inevitable choice for Chinese enterprises to achieve growth. After Southeast Asia and Mexico, the Middle East has become another hot place to go to sea in recent years.

APBU-44CE The key reason why the Middle East has attracted the attention of Chinese enterprises is that the Middle East, as one of the largest oil resources, is facing greater pressure than other countries in the current global pattern of energy transformation, and it is urgent to find a new way out, and actively layout in sports, tourism, entertainment, science and technology and other fields.

The ambition of “economic transformation”

APBU-44CE In 2016, Saudi Arabia announced the “Vision 2030”, which lists more than 300 specific transformation targets, aiming to build a new economic system through de-oilization structural reforms and get rid of its long-standing dependence on oil. It is mentioned that the recycling rate of its domestic waste will be increased from the current 3%-4% to 95%. This alone is said to create nearly $32 billion in Saudi GDP and 100,000 jobs.

On the occasion of the 50th anniversary of the founding of the UAE in 2021, the “National Development Strategy for the Next 50 Years” was also launched, focusing on investment and entrepreneurship in the field of digital economy and advanced technology application. In addition, Kuwait’s “2035 National Vision”, Qatar’s “2030 National vision”, Oman’s “2040 National vision”, Egypt’s “revitalization plan” have also been introduced, which also means that the Middle East countries from the social culture, economic industry, diplomatic strategy, have to undergo profound changes.

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The advantages of the Middle East Sea

APBU-44CE Chinese enterprises going to the Middle East also have certain innate advantages and foundation.

First, a sound policy foundation. On November 29, 2023, China and Jordan signed the Memorandum of Understanding between the Government of the People’s Republic of China and the Government of the Hashemite Kingdom of Jordan on Jointly Advancing the Construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. So far, China has signed cooperation documents on jointly building the Belt and Road with all 22 Arab countries and the Arab League. A solid cooperation mechanism will help the two sides further deepen cooperation in policy communication, infrastructure connectivity, unimpeded trade and financial integration.

Second, profound cultural accumulation. China and the Middle East countries have a long history of friendly exchanges. As early as more than 2,000 years ago, the ancient Silk Road closely linked China and the Middle East countries. The Belt and Road cooperation between China and the Middle East countries has been a highlight of cooperation in recent years.

Three, excellent technical reputation. Different from opening the market with clothing, retail and other trade in the past, Chinese companies that went to the Middle East in the early years were either high-end manufacturing companies with the background of the national team. Or technology companies like Huawei, Tencent, Ali and BGI. Over time, Chinese enterprises have left an impression on the Middle East market of excellent quality and excellent technology.