China in the Middle East
Vol. 3. No. 10. March 9, 2024
From S.R.
China has been glad to supply services to Saudi Arabia. But partnerships between Chinese and Saudi companies are a different story. At a tech show in Riyad, the marriage began.
He said. She said.
"Saudi Arabia seeks to change the region through development in the field of technology."
Saudi Communications Minister Abdullah Al Swaha touts the kingdom's opportunities with China.
Focus
The Hong Kong pavilion, featuring the “Golden Egg,” at LEAP.
Partners in the Gulf
For decades, the formula was that China would work to expand the energy sector of Saudi Arabia. Then, Beijing invited the Arab kingdom to conduct business in China.
Now comes Stage 3. China and Saudi Arabia have become partners in developing the Gulf. The partnership was unveiled at the LEAP tech show in Riyad, a three-day event that ended on March 7. The Chinese companies included Alibaba Cloud, China Mobile International, DJI, J&T Express, SenseTime MEA, Tencent and TikTok.
"We believe that LEAP is a platform that can help tech companies demonstrate their products and technology capacity, enhance their international presence and enhance cooperation opportunities with foreign partners," eWTPA founder Jerry Li said.
Officials said the two countries wanted to develop such fields as healthcare, smart cities and future energy. On March 6, China's Quicktron and BTR tech announced a strategic partnership in Gulf Cooperation Council states. The two companies have been developing and marketing robotic system integration and services.
"We are honored to partner with Quicktron to improve logistics across the GCC region," BTR tech chief executive officer Saleh Al Tunaib said. "By integrating Quicktron's advanced robotics into our solutions, we aim to empower businesses with increased efficiency and flexibility, paving the way for growth and success within the logistics sector."
LEAP, which sought to attract nearly $12 billion in investments, demonstrated the trend to partner Chinese and Saudi companies as well as their governments. In a move that could not have been envisioned a decade ago, the show's opening ceremony presented Rayyanah Barnawi, the first female Arab astronaut, in an attempt to highlight the modernization of the kingdom.
Another teaming has been COFE, an online coffee marketplace platform, with Alibaba Cloud, a move meant to streamline operations, drive efficiency, and accelerate digital transformation in the food and beverage sector. In 2023, COFE, launched a year earlier, was deemed one of the most innovative companies in electronic commerce.
"These investments, the largest of its kind in the region, would support deep and emerging technologies, innovation, and cloud computing in Saudi Arabia and worldwide," Saudi Communications Minister Abdullah Al Swaha said.
Hong Kong played a major role in LEAP. The Chinese island operated a pavilion led by Sun Dong, Secretary for Innovation, Technology and Industry. The pavilion focused on information and technology and offered solutions for the Gulf and other countries in the Belt and Road Initiative.
The Saudi government also got into the act. The Media Ministry announced a cooperation accord with eWTP Arabia Capital to promote Saudi media talent in China and Asia. eWTP, a venture capital firm based in Beijing and Riyad, was also expected to enhance logistics throughout the Gulf.
"Saudi Arabia seeks to change the region through development in the field of technology," Al Swaha, the Saudi minister, said.
China has also advanced cooperation with Saudi universities. On March 5, Huawei signed memorandum of understandings with King Khalid University, Jeddah University and Shaqra University to promote technology. The company said it would help train Saudi students to prepare for industry.
"Therefore, we are confident that collaborating with a leading technology company such as Huawei will be a great success," King Khalid president Falleh Al Solamy said.
Ticker Tape
...China plans a summit with Africa in the fall of 2024. The Forum on China-Africa Cooperation will bring Chinese and African leaders to discuss regional cooperation and exchange on governance. On March 7, Chinese Foreign Minister Wang Yi said the meeting would focus on development of the continent and build on Africa's largest trading partner since 2009.
...China says humanitarian aid is not reaching the war-torn Gaza Strip. A Chinese diplomat told the United Nations Security Council that shipments to the strip have dropped over the last month. Dai Bing said northern Gaza hasn't received any humanitarian supplies. On Feb. 27, Dai said the reduction in aid was attributed to "man-made obstacles" and called on Israel to "open up all land, sea, and air access routes, and ensure the safe, rapid, and unimpeded entry of humanitarian supplies."
...Alibaba has announced a price decrease of up to 55 percent on cloud products. Alibaba Cloud said this marked the biggest price decrease in its history. The company conducts much of its export business in the Middle East, and said the reduction, which took effect on Feb. 29, would make public cloud services more accessible.
...The United Arab Emirates' First Abu Dhabi Bank has reported steadily rising profits. The bank has been a leading facilitator of business with China and says it plans to triple revenue from China by 2026. FAB, the largest bank in the UAE, was the first foreign bank to obtain a Chinese currency license. On Feb. 27, the bank said it planned to accumulate $82 million in annual revenues over the next two years.
...Huawei has signed an agreement with Kuwait to facilitate digital transformation of the Gulf Cooperation Council sheikdom. Under the memorandum of understanding, the Chinese giant would partner with Kuwait Telecommunications to develop a 5.5G intelligent wireless network as well as formulate new services. The two companies have been strategic partners for several years.