Gulf companies’ investments in China jump 1000% to $5.3 ‎billion

The value of acquisitions and investments by Gulf companies in China increased by more than 1000% on an annual basis to $5.3 billion, according to a Bloomberg report, and it is expected that this year will witness a higher momentum in terms of investments and deals between the Gulf countries and China.

The report indicated that the Mubadala Investment Company and the sovereign wealth fund in Abu Dhabi, which has a size of $280 billion, is intensifying its operations in China to search for investments. Dubai witnessed a 24% increase in the number of Chinese companies set up in the Commodity Free Zone, after promotions in the Asian country.

Officials in Riyadh describe China as an indispensable partner for the trillion-dollar Vision 2030. A series of Chinese companies won contracts to build the city of the future, “NEOM”.

One of the upcoming deals in China is the $9 billion initial public offering (IPO) that Chinese giant Syngenta conglomerate is planning in Shanghai. The state-backed company’s advisors held discussions with sovereign funds, including the Abu Dhabi Investment Authority (ADIA) and the Saudi Public Investment Fund, to participate in the IPO as anchor investors.

The Gulf-Chinese relations are witnessing great momentum recently, as Chinese President Xi Jinping visited Saudi Arabia in December of last year 2022, during which he confirmed the increase in trade exchange and investments between the two sides.

Last June, Riyadh hosted the Tenth Conference of Arab and Chinese Businessmen, and witnessed the signing of investment agreements worth more than $10 billion (37.5 billion riyals), including 23 agreements and deals in a number of sectors; Including: technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare.

The value of trade between the Arab world and China amounted to approximately 430 billion US dollars in the year 2022 AD, of which more than 106 billion dollars were between China and the Kingdom of Saudi Arabia, with a growth rate of 30% compared to the year 2021 AD.