China in the Middle East
Vol. 1, No. 21. May 28, 2022
From S.R.
Well, we've passed our 20th edition of China in the Middle East. Somehow, things get easier the more you do it. We hope you have found this publication helpful and, if so, will pass it around to friends and colleagues. In this edition, we report on China's success in advancing a huge railway project in the UAE despite Covid restrictions.
He said. She said.
"The completion of the main railway will enhance the strategic position of the project at the transport and infrastructure levels..."
Etihad chairman Theyab Bin Mohammed lauds the completion by China of a stage in the UAE's mammoth railway project.
Focus
Deputy Dubai ruler Maktoum Bin Mohammed and Etihad chairman Theyab Bin Mohammed attend the railway link of Dubai and Abu Dhabi. [Etihad Rail]
China Moves Rail Project in UAE
Covid-19 has stopped many major projects, particularly in the Middle East. But China has managed to sustain the construction of a railroad in the United Arab Emirates.
China State Construction Engineering Corp. has succeeded in advancing the Etihad Rail project in the UAE. China State, one of the largest construction firms in the world, has completed Stage 2, which connects Dubai with Abu Dhabi.
Etihad Rail has been deemed a leading element in the Belt and Road Initiative in the Gulf and the largest infrastructure project in the UAE. The railroad was meant to connect all seven emirates as well as with other Gulf Cooperation Council states.
"The completion of the main railway of the UAE National Rail Network project between Dubai and Abu Dhabi represents an important pivotal phase that shows the great benefits of this national project in linking all the emirates of the country and enhancing the transportation process between industrial and economic centers, and facilitating transportation within the UAE," Sheik Maktoum Bin Mohammed, the deputy ruler of Dubai, said.
Officials said Etihad Rail has not been significantly affected by Covid. They said Stage 2 of the railway between Ghuwaifat and Ruwais, which spans 605 kilometers, has been moving ahead. Ruwais is located along the border with Saudi Arabia.
In March, the UAE oversaw the installation of the final piece of the 139-kilometer railway track between Dubai and Abu Dhabi. Officials said the completion by China State's Middle East subsidiary — termed “Package A” — would enhance the integration of the two UAE emirates and prepare for the linking of other areas of the country.
Stage 2 contains at least four elements, with Package D awarded to China Railway Construction Corp. in 2019 and meant to connect the ports of Fujairah and Khorfakkan. CRCC has also been engaged in projects in Algeria, Djibouti, Saudi Arabia and Turkey.
China has invested heavily in Etihad Rail, meant to transform the UAE into the hub of Gulf trade. Officials said the current investment is worth 50 billion dirham [$13.6 billion] and could rise to 200 billion dirham [$54.4 billion].
"The completion of the main railway will enhance the strategic position of the project at the transport and infrastructure levels, and contributes to the promotion of sustainable development in the UAE, and the consolidation of its position to remain in the first ranks at the regional and global levels," Etihad chairman Sheik Theyab Bin Mohammed said.
On May 15, Chinese President Xi Jinping said his country and the UAE have achieved "notable results" in fighting Covid. The president said he regards the development of relations with Abu Dhabi as highly important.
"With joint efforts from both sides, the China-UAE comprehensive strategic partnership will see continuous consolidation and development," Xi said.
Officials said Etihad Rail was expected to meet its deadlines despite the Covid restrictions and lockdowns in 2021. They said Beijing has overseen 13,300 workers to sustain the project, which includes the construction of 29 bridges, 60 crossings and 137 drainage channels. The UAE was also the first country to approve emergency use of Covid vaccines produced in China.
"Relations remained strong throughout the pandemic — including during periods when the UAE was under tighter restrictions than China — so there is no reason why that should not remain the case now that China is operating under stricter containment measures," Patrick Cooke, a leading researcher at Oxford Business Group, said.
The UAE has been regarded as a leading partner in BRI and other Chinese initiatives. The GCC state contains more than 6,000 Chinese companies, enabled by agreements with Beijing in the areas of food, energy, financial services and education.
Analysts said they expect China to expand its cooperation with the UAE to include military issues. They cited Abu Dhabi's dismay in procuring advanced combat platforms from the United States.
"The United States' reluctance to support the GCC has made it clear to them that they need to diversify their security partners, and that China will be an asset to them in this regard," Mohammed Salami, a researcher at Pakistan's International Institute for Global Strategic Analysis, said. "This will strengthen relations beyond economic relations with China."
Ticker Tape
...Sudan intends to expand energy cooperation with China. Officials said the state-owned Chinese National Petroleum Corp. plans to increase investments in crude oil production and logistics. They said the company has also been asked to develop Sudan's electricity and and renewable energy sectors. On May 24, the Chinese embassy in Khartoum said it was encouraging Chinese companies to establish a presence in the Arab country.
...China has held a workshop on training Africans for parliament. On May 13, the Chinese Commerce Ministry launched meetings in the Sudanese capital of Khartoum that brought young parliamentarians from around the continent. The Africans were addressed by Chinese senior officials, including members of the ruling Communist Party. The 13-day workshop, held as part of Beijing's efforts to improve relations with Africa, discussed China's political system as well as efforts to reduce poverty and improve health.
...A Chinese firm has advanced in the construction of a hydropower plant in Israel. Power Construction Corporation of China reached the final stage in the 344 megawatt pumped storage power plant near the Israeli city of Beit Shean. The plant would contain a 200-ton rotor to turn water into electricity. Officials said the hydropower facility, the largest in Israel, would become operational in early 2023.
...China has funded a road project in Jordan. On May 26, officials signed an accord to expand and modernize the road from Salt to Ardah, expected to be completed by late 2023. This marked the first of a series of Chinese projects in the Hashemite kingdom, and officials said the road would link Amman with the Dead Sea in an effort to enhance tourism. China has also funded education, health and development projects in Jordan.
...Huawei has been recruited to facilitate the World Cup in Qatar in November 2022. The Chinese company has been working to connect all eight FIFA World Cup stadiums to high-speed internet in the one of the largest projects in the Gulf Cooperation Council state. Huawei, with several projects in the Gulf, has been working with Qatari partners in the use of very high capacity broadband wireless technology, which would provide 500 gigabytes to each stadium. The Chinese company briefed visitors on the project at Milipol Qatar 2022 in Doha in May.