Latest news with #global influence
Arab News
2 days ago
- Business
- Arab News
Gulf investors turning to Asia's finance giants
In recent years, there has been a noticeable shift in the investment strategies of Gulf nations, as they increasingly turn to Asia for funding. This trend marks a significant pivot in the region's economic diversification efforts, driven by both geopolitical considerations and the evolving global economic landscape. With traditional Western investment sources becoming more volatile, Asian powers — especially China, India and Japan — are fast becoming the region's go-to funding source, as the Gulf states seek financial capital and strategic partnerships to expand their global influence and secure long-term growth. As of June, Saudi Arabia had already sought more than $2 billion in syndicated loans toward Asia-Pacific bank liquidity. This includes $1 billion for the Saudi Electricity Company, $750 million for Banque Saudi Fransi and $500 million for Al Ahli Bank of Kuwait — transactions that reflect a clear strategy to diversify funding sources beyond domestic markets. Qatar Gas Transport Company last week secured a five-year, $1 billion syndicated loan, with Mizuho Bank acting as the sole mandated lead arranger and bookrunner. The deal follows an earlier financing arrangement with Korea Eximbank to build 25 conventional Korean-built liquefied natural gas carriers. This wave of recent announcements, marked by a growing number of deals with Asian banks, signals a structural shift in the global geoeconomy. For decades, the US and Europe served as the key destinations for Gulf banks seeking to raise capital. These markets provided deep liquidity, investor familiarity and established frameworks for issuing debt. However, the geopolitical and financial dynamics that once characterized this east-to-west flow of capital are rapidly changing. Today, Gulf banks are increasingly looking toward markets like Singapore, Hong Kong and Taipei as viable alternatives for capital raising. Instruments such as private placements, Formosa bonds and growing interest in Panda bonds are creating new pathways to Asia's capital markets. Central to this shift is China's Belt and Road Initiative, which aims to connect China to Asia, Africa and Europe through vast infrastructure investments. As key trade partners in oil and energy, Middle Eastern countries are increasingly engaging with China, seeking opportunities in infrastructure, finance and technology. Energy, more than any other sector, has become the most visible gateway for global investors into the Middle East. Zaid M. Belbagi This pivot toward Asia is also evident in the growing diplomatic and financial exchanges between the Gulf and the East. For instance, high-profile visits by Hong Kong officials to Saudi Arabia, including the launch of a $1.2 billion Shariah-compliant exchange-traded fund tracking Hong Kong-listed companies, shows Asia's rising efforts to court Gulf wealth. Adding to this are the increasing investment flows between the Gulf and Asia, with Saudi Arabia's Public Investment Fund alone allocating $6.6 billion to the region between 2022 and 2024. Gulf funds, such as the Abu Dhabi Investment Authority, Mubadala Investment Company and the Qatar Investment Authority, are also significantly increasing their investments in Asia. These trends are unfolding against a backdrop of shifting global alliances. With the UAE now a member of the BRICS grouping and Saudi Arabia having been invited to join, Gulf states are clearly signaling their commitment to a more multipolar investment strategy. Energy, more than any other sector, has become the most visible gateway for global investors into the Middle East. The high-voltage direct current 'Project Lightning,' a major initiative to power ADNOC's offshore oil operations in the UAE with electricity instead of gas, has secured $1.2 billion in committed financing, led by the Japan Bank for International Cooperation and co-financed by Korea Eximbank, the Sumitomo Mitsui Banking Corporation and Mizuho Bank. This export credit agency-backed structure, contracted by Abu Dhabi, offers both risk visibility and replicability, setting a benchmark for large-scale oil and gas decarbonization projects across the region. In Saudi Arabia, NEOM Green Hydrogen Company closed an $8.4 billion investment package, including $6.1 billion in nonrecourse debt from 23 local and international lenders. Asian banks played a prominent role in the financing syndicate, helping secure competitive terms. With fewer investment opportunities in Asia-Pacific, the Gulf offers a much-needed avenue for growth and diversification. Zaid M. Belbagi The surge in credit contracted by Gulf operators from Asia-Pacific lenders over the past year reflects the attractive terms and diverse financing options that Asian banks can provide. Central to this financing are institutions such as the Japan Bank for International Cooperation and Nippon Export and Investment Insurance, which play a crucial role in both funding and risk mitigation. These institutions provide more than just capital; they assume much of the risk, particularly during the sensitive construction and early operation phases, by providing direct loans, insurance and guarantees. A notable example is the Warsan waste-to-energy project in Dubai, for which the Japan Bank for International Cooperation committed about $452 million in direct financing, while Nippon Export and Investment Insurance offered loan insurance covering $380 million of the commercial bank debt. By shouldering a significant share of the risk, these institutions have made it possible to move forward with large infrastructure projects. Asian banks also often provide a complete financing package that includes, alongside capital, critical equipment and engineering, procurement and construction services from Asian companies. This package approach is common in sectors like energy and infrastructure, where specialized technologies are essential. However, this approach creates a strong dependency on the Asian suppliers throughout the project's life cycle. For Asian investors, the Middle East has become an increasingly attractive destination for infrastructure and new energy projects. With fewer investment opportunities in Asia-Pacific, excluding Japan, and a 30 percent drop in syndicated loans in hard currencies, the region offers a much-needed avenue for growth and diversification. In this context, the growing footprint of Asia-Pacific megabanks in the Middle East reflects a deliberate shift in both financial strategy and geopolitical alignment. Alongside financial engagements, there has been a rise in the deployment of Chinese private military companies to safeguard energy and trade routes, critical not only for China but also for Japan and Korea. The broader picture is clear: Gulf investors are increasingly turning to Asia as a key part of their diversification strategy, reducing their dependence on the West.
Forbes
08-08-2025
- Business
- Forbes
Cultural Leadership: The Next Global Superpower
Paolo Petrocelli, Head of Dubai Opera. What makes a country powerful in today's world? Is it military strength, economic capacity or technological innovation? These certainly remain essential. But increasingly, cultural leadership is emerging as a highly strategic, sustainable and human-centered form of influence at the global level. Power is no longer measured exclusively by production or defense. It is defined by a country's ability to inspire, engage and connect with people across borders. In our interconnected and fast-paced world, the capacity to build bridges through stories, symbols and shared experiences has become a defining characteristic of modern leadership. The future belongs to those who can speak not only to the mind, but to the heart. The Rise Of Cultural Power In the twentieth century, global dominance was associated with industrial capacity and military alliances. Success was defined by economic expansion and geopolitical control. Today, the world is experiencing the rise of a new kind of influence: one rooted in cultural identity, creative expression and emotional resonance. A powerful example is South Korea, whose cultural ascension has reshaped global perceptions. Through the explosion of K-pop, K-dramas, fashion and cinema, South Korea has captivated audiences worldwide. The global impact of BTS, BLACKPINK and the Oscar-winning film Parasite demonstrates the strength of cultural strategy. Japan, after its industrial rise, repositioned itself globally through aesthetics, cuisine, design and storytelling. Japanese culture has come to symbolize innovation, serenity and sophistication. Italy, long admired for its classical heritage, continues to inspire through its unique blend of tradition and reinvention. Opera, design, food and fashion are all part of a living legacy. In Brand Finance's "Global Soft Power Index 2024," Italy ranks among the top nations for cultural influence, demonstrating how heritage can remain a future-facing asset. None of these examples is coincidental. They are the result of strategic cultural investment. From Soft Power To Strategic Influence A concept introduced by Harvard professor Joseph Nye in 1990, soft power is the ability to win support from others through common ideals rather than through coercion. For many years, soft power was treated as secondary to economic and military tools. That perception has now changed. Around the world, governments and institutions are embracing culture not as an ornament, but as a central part of their long-term strategy. The United Arab Emirates (UAE), which I call home, exemplifies this evolution. In recent years, the UAE has emerged as a regional and global cultural hub. With landmarks such as the Louvre Abu Dhabi, the Abrahamic Family House and the Dubai Opera (which, full disclosure, I am head of), the nation is using culture to position itself as a connector between East and West. These initiatives are more than symbolic. They represent a clear understanding that culture builds understanding, fosters tolerance and enhances international reputation. They demonstrate that nation-building today involves not only infrastructure, but imagination. Culture is now an asset for diplomacy, tourism, education and sustainable development. It is an investment in long-term influence. Cultural Leadership As A Model For The Future Cultural power requires people who can guide it with vision and clarity. This is the essence of cultural leadership. To lead culturally means more than overseeing institutions. It means shaping the emotional and intellectual foundations of society. It requires the ability to reflect a community's identity while opening space for dialogue, progress and shared purpose. Cultural leaders are not simply directors or curators. They are architects of meaning. They create platforms for connection and collective expression. Their leadership is based on inclusion, resonance and inspiration, rather than authority or control. This approach is not limited to the arts. Executives, educators and public officials can and should think like cultural leaders, using empathy and imagination to shape meaningful experiences and decisions. In a world marked by fragmentation and mistrust, this kind of leadership is essential. Opera, Art And The Reimagining Of Influence Even the most traditional art forms are being renewed within this framework. At Dubai Opera, we are working to create a space that is relevant to all generations, rooted in excellence but open to experimentation. This means building programs that speak to both heritage and the present, creating experiences that are inclusive and forward-looking. Cultural institutions are increasingly drivers of innovation, education and social engagement. They nurture creative economies, attract international talent and enhance the vibrancy of cities. When a country invests in the arts, it is not merely supporting beauty. It is investing in cohesion, tourism, mental well-being and civic pride. According to a 2023 UNESCO report, the cultural and creative industries account for more than 3% of global GDP and provide more jobs to young people than many traditional sectors. These numbers are not abstract. They point to a simple truth: Culture creates value in every sense. A Call To Action I believe the next global superpower will not be defined by its military arsenal or its access to advanced technology. It will be the nation whose culture captivates, inspires and resonates on a global scale. A country's place in the world will increasingly be shaped by its identity, creative ambition and cultural clarity. These qualities must be cultivated with care and intent. They require policy frameworks that place culture at the center of national planning and international engagement. For leaders, this means understanding that culture is not a cost. It is a form of capital—one that multiplies over time, creates loyalty and unlocks new paths for innovation and influence. If we are serious about building a more inclusive and interconnected world, we must treat cultural leadership as a strategic imperative. The future belongs not only to the strong or the fast. It belongs to those who can move people—not just through power, but through meaning. Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
Al Jazeera
17-07-2025
- Business
- Al Jazeera
US losing ground to China due to Trump's policies, Democrats warn
The United States is losing strategic ground to China due to US President Donald Trump's withdrawal from the global stage and transactional approach to foreign policy, a Democrat-authored report has warned. Surveying Trump's first six months in office, the report warns that his tenure has 'significantly undermined' Washington's ability to compete with China. The report highlights staff reductions at the US Department of State and the 'chaotic gutting' of the United States Agency for International Development (USAID) and the US Agency for Global Media – which oversees Voice of America and Radio Free Asia – as moves that have weakened US power and influence. The report, released on Monday by Democratic members of the US Senate Foreign Relations Committee, describes China as a 'strategic challenge distinct from any in our nation's history' with a 'long-term strategy to unseat the United States as the world's leading superpower'. 'While President Trump retreats from every corner of the world – attacking allies, slashing America's diplomatic tools and embracing adversaries – China is building influence, expanding relationships and reshaping the global order to its advantage,' US Senator Jeanne Shaheen said in a statement. According to the report, China has moved to fill the void created by Trump's withdrawal from global initiatives such as the World Health Organization and the Paris Climate Agreement by boosting funding overseas and increasing its diplomatic footprint. Trump's tariff war against US trade partners has also undercut 'alliances and economic partnerships', according to the report, pushing even close US allies in the direction of China. The warning from Democrats, who hold a minority of seats in both Congressional houses, dovetails with Tuesday's release of an opinion survey pointing to a global shift in attitudes in favour of China. Attitudes towards China have improved in 15 out of 25 countries, including Mexico, South Africa, Turkiye, Kenya and Indonesia, compared with last year, the nonpartisan US-based Pew Research Center said. While overall global perception of China remains largely negative – with a median 54 percent of respondents reporting an unfavourable perception – the country is now seen as the world's top economic power with a slight edge over the US, according to Pew. The survey found that 41 percent of respondents viewed China as the world's 'top economy' in 2025, compared with 39 percent for the US. Some of the sharpest shifts in perception were seen in 10 high-income countries – Canada, France, Germany, Italy, Japan, the Netherlands, South Korea, Spain, Sweden and the United Kingdom. Across this group, only 35 percent of respondents held a favourable view of the US, down from 51 percent in 2024, according to Pew, with double-digit drops in sentiment recorded in key Asia Pacific allies South Korea, Japan and Australia. China received a bump in approval across the 10 high-income countries, rising from 23 percent favourability in 2024 to 32 percent in 2025. Confidence in the US president across high-income countries fell from 53 percent in 2024, when US President Joe Biden was in office, to 22 percent following Trump's return to the White House, according to Pew. The US president's approval rating is now slightly lower than that of Chinese President Xi Jinping, who saw a slight uptick in approval from 17 percent in 2024 to 24 percent in 2025. Trump's trade war has engendered 'much deeper scepticism and distrust of the United States across Asia today', said Ian Chong, an associate professor of political science at the National University of Singapore. 'For some, cooperation with [China] appears to be an attractive alternative,' Chong told Al Jazeera. 'However, the lack of strong responses to the US tariffs also reflect a reality where economies in the region and beyond realise that they also cannot do without economic cooperation with the United States, however much they may dislike it.' William Yang, a senior analyst for Northeast Asia at the Brussels-based Crisis Group think tank, said China is increasingly seen as a more reliable business partner amid the uncertainty emanating from the US. 'As countries grapple with the uncertainties brought by the Trump administration, a growing number of them, including close US allies in the Indo-Pacific region, are seeking to stabilise their relationship with China by increasing high-level bilateral exchanges,' Yang told Al Jazeera. Leaders of a host of US allies have visited China since Trump took office, including Australian Prime Minister Anthony Albanese and Indian External Affairs Minister Subrahmanyam Jaishankar, both of whom met Chinese President Xi Jinping this week in Beijing. Earlier this year, Xi also received the prime ministers of Singapore, New Zealand and Spain, as well as the president of Brazil. 'There are still fundamental concerns about certain Chinese practices, especially in the security sector, but in order to ensure they have more bandwidth to cope with the added uncertainties created by the Trump administration, these countries see the need to stabilise their relationship with China,' Yang said. 'That, in turn, might result in a slight improvement of views on China.'
