Chinese Money in Arab World Projects: Economist

This decade has witnessed a strengthening of economic ties between a number of Middle Eastern countries and China. While previously the Middle East was seen primarily as a petrol station, explains the Economist, with nearly half of China’s oil supplied by Arab countries and Iran, there was little direct foreign investment. The Economist reports that since 2010, Chinese investment has skyrocketed: “ports in Oman, factories in Algeria, skyscrapers in Egypt’s new capital. Last year it pledged $23bn in loans and aid to Arab states and signed another $28bn in investment and construction deals.” The policy of political “non-interference” has allowed China to establish ties with opposing camps – including Saudi Arabia and Iran, Israel and Syria – offering some protection in the event of a fallout between Arab world autocrats and the United States. Although China has yet to establish a military foothold in the region, the 2017 opening of its first overseas military base in Djibouti “may be a sign of broader ambitions,” as the once ignored emerging power has gained a commanding presence on the world political stage. For now, it appears that profitable trading and commercialism remain China’s primary focus in the Middle East. –YaleGlobal

Chinese Money in Arab World Projects: Economist

The last decade has seen an exponential rise in Chinese investment throughout the Middle East
Tuesday, June 4, 2019

Read the article from the Economist

Copyright The Economist Newspaper Limited 2019

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