4 days ago
- Business
- South China Morning Post
Investment ties between China and the Middle East to get stronger: Saudi Arabia's EWPartners
Ties between China and
the Middle East are expected to get stronger amid global trade uncertainties and the mainland's advancements in technology and healthcare, according to EWPartners, an investment firm backed by the Public Investment Fund of Saudi Arabia.
'De-globalisation, global trade uncertainties and the juggling of supply chains around the world incentivise or motivate more Chinese companies and entrepreneurs to consider alternative options [like] alternative supply chain and factory arrangements,' said managing director Cliff Chau in an interview on Thursday.
Many established mainland companies have found the Middle East to be attractive, as the region seeks business opportunities outside the oil and gas industry and maintains strong diplomatic ties with China, he said.
'Such [economic] diversification … provides enormous opportunities for foreign companies to penetrate and access the market [in a way] that was not previously available,' Hong Kong-based Chau said. 'We are seeing a lot more inquiries [about] how we can help them diversify their supply chains, capabilities and manufacturing facilities.'
EWPartners was established in Riyadh in 2017 and has made around 20 portfolio investments with a focus on helping Asian businesses to expand in the Middle East. They included cross-border ventures with
Alibaba Group Holding , owner of the Post,
PC maker Lenovo , courier J&T Global Express and Hong Kong online broker Valuable Capital.
In addition to e-commerce and fintech, Chau said he saw opportunities in smart manufacturing.
'The level of automation has increased dramatically over the last several years,' Chau said, adding that smart manufacturers were more likely to consider the Middle East as a result. He said Middle Eastern countries wanted to attract these kinds of companies so they could make goods there and engage in importing and exporting.
