Middle East Opportunities for Chinese companies

I had the pleasure of co-hosting the International Connections Event for Chinese corporates in partnership with the Chinese Business Council. The panel discussion focused on Middle East Opportunities for Chinese companies and attendees gained insights into the unique business environment in the MENAT region and the experiences of the Chinese business community.

Highlights from the panelists include the relaxation of foreign ownership restrictions in the GCC, attracting foreign investors and benefiting Chinese companies in the UAE. The GCC governments have shifted their focus to capital flows and diversification, offering opportunities in infrastructure development, renewables, and other sectors. China State Construction is a successful example of a Chinese EPC contractor in the region.

We have observed more manufacturers considering investment and setting up offices in the UAE's free zones, which offer attractive regulations, tax benefits, and infrastructure support. The UAE government aims to increase the contribution of industrial manufacturing to 25% of the GDP i.e AED 300 billion (USD 81.7 billion) in manufacturing value-added per capita by 2031, through initiatives like Economic Vision 2030. Key sectors for growth and job opportunities include food and beverage, pharmaceuticals, electrical equipment, petrochemicals, machinery, hydrogen, medical technology, and space technology. "Made in UAE" as a place of origin?could be considered as an alternative for Chinese manufacturers to mitigate the geo-political tension and enjoy other beneficial treatments.

The UAE's capital market has seen significant growth, with the market capitalization of the two exchanges reaching AED 900 billion. The Middle East's capital markets, particularly in the UAE, have matured rapidly. HSBC has been a leading player in the equity capital markets business in the UAE and Saudi Arabia for several years with a focus on IPO, M&A and debt issuance activities, for more information please contact [email protected].