Since this year, China’s policy and philosophy on the Middle East issue has gained widespread recognition by the countries in the region, driving the Middle East’s “reconciliation tide”. China’s strategic mutual trust with the Middle East countries has been deepening, and economic and trade relations are also becoming closer.

Earlier, Saudi oil giant Aramco said it had agreed to acquire 10% of the shares of Chinese oil giant Aramco at a price of $3.6 billion, which would significantly expand Saudi oil refining business in China. Saudi investment department signed an agreement worth $6.6 billion with Chinese electric vehicle manufacturer China Transporter, and the two sides will establish a joint venture to develop, manufacture and sell automobiles.

At a China-Arab trade conference in Riyadh this June, the head of the Hong Kong Stock Exchange predicted that by 2030, several of the largest sovereign wealth funds in the Middle East could allocate $1 trillion to $2 trillion in investment funds to China. Analysts believe that Saudi relations with the United States have increased in recent years, which has also prompted Saudi Arabia to seek to expand its political and economic influence, and that China, the world’s largest oil importer, has created an opportunity for Saudi Arabia to turn its economic influence into political capital, and that Saudi Arabia will also bring huge economic opportunities to China.

In addition, even without considering the political aspects, it is natural for Middle Eastern investors to seek opportunities in China.Hong Kong Exchange Group CEO Nicolas Aguzin noted that the current investment of large sovereign wealth funds in China in the Middle East accounts for only 1 to 2 percent of their assets, and he believes that the figure will grow 10 times.

As the global economic uncertainty continues to rise, Middle East capital is also a good choice for Chinese enterprises. Samsung Technologies has previously signed a Memorandum of Understanding with Saudi Arabia to conduct pilot projects around smart city software platforms to provide efficient smart services and value to customers in the region with artificial intelligence. The data from Sharp Global Market Intelligence Company show that Abu Dhabi sovereign wealth fund Mubadala has been an investor in the fourth paradigm of Chinese AI companies since at least 2021. Chinese tech giant Huawei’s business in the Middle East has been growing steadily, including helping the UAE build the first 5G network in the Gulf region, and signing a partnership agreement with Saudi state-owned telecom companies.