(MENAFN- The Peninsula) The Peninsula
Doha, Qatar: The economic corridor between China and the Middle East, North Africa and Türkiye (MENAT) region is set to see business and investment flows accelerate substantially in the coming five years according to a new hsbc report titled, The China-MENAT Corridor: Unlocking Growth Potential.
The report was released at HSBC's China-MENAT Summit in Shanghai and Beijing, where HSBC's Regional Chief Executive for MENAT and senior members of the bank's regional leadership team, presented their expert view on the Middle East's economic transformation to clients, including entrepreneurs, sovereign wealth funds, investment agencies and government representatives.
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Addressing business leaders, Stephen Moss, Regional Chief Executive, Middle East North Africa and Türkiye (MENAT), HSBC Bank Middle East, said:“The MENAT region is witnessing unprecedented economic change and transformation, led by Saudi Arabia and the UAE, and we're seeing robust growth momentum driven by a vision to diversify economies and spearhead energy transition. This is an opportune time for Chinese investors and businesses to make inroads into the Middle East, to capture inbound and outbound investment opportunities. HSBC's long heritage and strong presence in both markets, and our international network covering more than 90 percent of global GDP, trade, and financial flows, putat the forefront of connecting clients to the exciting opportunities emerging in capital markets, international investments, technology, infrastructure, and energy transition along this vibrant economic corridor.”
HSBC's report presents the current state of trade and investment between MENAT and China. It details the growth in trade between MENAT and China and the foreign direct investment flows between them, while considering how their respective energy resource and manufacturing strengths offer scope for increased economic and business collaboration.
Trade between the Gulf Cooperation Council (GCC) and China surpassed GCC trade with theand Euro Area combined for the first time in 2021 , and there is $178bn in untapped trade potential between China and MENAT between now and 2027.
China is Saudi Arabia's largest trading partner in the Middle East, and bilateral trade between the two countries reached $106bn in 2022 . The stands as China's second-largest trading partner in the Arab world with the value of non-oil trade between the two countries exceeding $72bn in 2022, reflecting an 18 per cent growth from 2021.
Mark Wang, President and Chief Executive Officer of HSBC China, said:“We have seen growing interest from Chinese clients in tapping into MENAT's tremendmarket potential when innovation and sustainability continue to drive growth across the region, particularly in the burgeoning new economy sectors. There's synergy between the two emerging markets with Chinese corporates bringing in expertise in digital innovation, climate tech and new business models, as MENAT's investor base, demand for renewables and a growing young population offer essential capital and market opportunities.”
HSBC has a long-standing heritage in both MENAT and China, with its roots in China dating back to 1865 when it was established in Hong Kong and Shanghai, and its origins in the Middle East traced as far back as 1889. Today HSBC has a significant presence in MENAT in eight markets: Algeria, Bahrain, Egypt, Kuwait, Qatar, Saudi Arabia, Turkiye and the UAE, and is also a leading international bank in China.
In Saudi Arabia, HSBC is a 31 percent shareholder of SAB (formerly known as Saudi British Bank) and a 51 percent shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. As the largest international bank in Saudi Arabia, HSBC is ideally positioned to serve the multi-dimensional needs of Chinese businesses looking to invest in the Kingdom's fast-growing economy.