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Qatar and China will strengthen strategic relationship

chinaQatar organized “Made in China” exhibition at Doha Exhibition and Convention Centre going to be held on 15th to 18th November 2016. The exhibition was attended by H.E. the Deputy Prime Minister of Qatar, Minister of State for Cabinet Affairs, H.E. the Qatar Central Bank Governor, Qatar Chamber Chairman and other dignitaries from corporates and banks in Qatar. The Deputy Prime Minister spoke during the event, he said highlighted the role of Qatar’s private sector in enhancing relations between Qatar and China through initiatives like “Made in China”. Both the Qatari and Chinese governments have decided to improve bilateral relations. The exhibition will offer an opportunity for Qatar to tap into China’s world-class technological advancements, bringing both countries close in terms of productivity and innovation he said.

GCC states mainly provide more than 50% of China’s energy needs, including petrochemical products and metal industries. Qatar has launched Renminbi Centre in Doha which is an example of Qatar-China strategic relations. The International and Commercial Bank of China (ICBC) is the clearing bank for the Chinese currency deals in Qatar.

Saudi Arabia-China trade has surged from more than $43bn in 2010 to more than $69bn in 2014. Chinalco, China’s state-run aluminum manufacturer, is funding phosphate projects in northern Saudi Arabia. Saudi Arabia’s Aramco and Sinopec Group signed the deal to develop the 400,000bpd refinery, known as Yasref, in January 2013. In 2012, Industrial and Commercial Bank of China (ICBC) got approval to open branch in Saudi Arabia. The UAE-China trade has surged from more than $25bn in 2010 to more than $50bn in 2014. Chinese companies are operating specifically within the logistics, aviation and energy sectors in the UAE. China and UAE signed a $5.5bn currency swap deal in Jan 2012. In March 2013, Agricultural Bank of China started a branch in Dubai. There are more than 300,000 Chinese nationals who are working and living in the UAE, in addition to over 4,200 Chinese companies. Kuwait-China trade had surged from $8.5bn in 2010 to more than $13bn in 2014. In June 2014, Kuwait and China signed agreements and memoranda of understanding (MoUs) to boost their ties and cooperation in the areas of economy, investment, energy, culture, education and civil aviation.

In Jan 2013, China’s foreign exchange regulator awarded Kuwait Investment Authority (KIA) fresh quota of $700mn for direct investment in the Chinese securities market, on top of the $300mn already granted earlier. KIA has stake in agriculture bank of China. KIA was also granted a $1bn license by China’s central bank in 2012 to invest in its domestic interbank bond market. In 2012, Industrial and Commercial Bank of China got approval to open a branch in Kuwait. Oman-China trade has surged from more than $10bn in 2010 to more than $25bn in 2014. China is one of the major importers of Crude oil from Oman. Bahrain-China trade has surged from more than $1bn in 2010 to $3bn in 2014. China is a leading contributor to global trade. In 2014, Global trade was worth $19tn, out of which China‘s exports were worth $2.3tn and imports were worth $1.96tn.

China is Qatar’s fifth partner in an initiative launched by Qatar Museums to build cultural ties between Qatar’s residents and other countries around the world. China supports the holding of China-Qatar Cultural Year in 2016 to push forward bilateral people-to-people and cultural exchanges. In January 2012, China National Petroleum Corp (CNPC) and its partners Qatar Petroleum and Royal Dutch Shell agreed to push ahead with plans for a $12.6bn refinery and petrochemical complex in east China. In May 2012, Petro China signed an agreement to acquire 40% of exploration and production rights for Qatar’s Block 4 from GDF Suez Qatar. In March 2011, Qatar signed an $879mn contract with China Harbor Engineering Co (CHEC) for the construction of the first phase of Qatar’s New Doha Port.

In Jan 2012, Mazaya Qatar Real Estate Development Company awarded China’s Sino hydro a contract worth $130mn to construct the Sidra Village project. Qatar’s sovereign wealth fund received permission in 2012 to invest in China’s capital markets. Qatar Investment Authority holds shareholding in Agriculture bank of China. In August 2012, Qatar sovereign wealth fund bought 22% stake in China’s CITIC Capital. Qatar holding also has a $1mn cap that a qualified foreign institutional investor (QFII) can obtain in China. Chinese expats in Qatar numbered 6,000 in 2013. Qatar and China will strengthen strategic relationship.

About Marc Mcilhone

Marc Mcilhone
Marc Mcilhone is ArabBrains' Editor - sourcing news and features content and overseeing the work of the site’s contributors. Marc’s work is informed by his technical background in architecture having worked for some of the UK’s leading practices on projects within the education, healthcare and housing sectors. Marc has a particular interest in how innovators are creating sustainable solutions that have a positive impact on people’s everyday lives. Please email press releases and news to: editor@arabbrains.com

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