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There is $178 billion in untapped trade potential between China and the Middle East, North Africa and Türkiye (MENAT) between now and 2027, and a business and investment corridor between the two is expected to accelerate.
A new report by HSBC released at the bank’s China–MENAT Summit in Shanghai and Beijing said it was an opportune time for Chinese investors to make inroads into the region as it undergoes unprecedented economic change led by Saudi Arabia and UAE.
The bank said trade between GCC countries and China surpassed GCC trade with the USA and Euro Area combined for the first time in 2021.
China is also Saudi Arabia’s largest trading partner, with bilateral trade reaching $106 billion in 2022, and the UAE is its second largest trading partner in the Arab world, with non-oil trade exceeding $72 billion in 2022, up 18% on 2021.
Mark Wang, president, and CEO of HSBC China, said: “There’s synergy between the two emerging markets with Chinese corporates bringing in expertise in digital innovation, climate tech and new business models, as MENAT’s investor base, demand for renewables and a growing young population offer essential capital and market opportunities.”
HSBC is present in eight markets in the region, Algeria, Bahrain, Egypt, Kuwait, Qatar, Saudi Arabia, Türkiye and the UAE.
The bank is also a 31% shareholder of SAB, formerly Saudi British Bank and a 51% shareholder of HSBC Saudi Arabia for Investment Banking.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
