The Future Investment Initiative (FII) held in Saudi Arabia every year is known as the “Davos in the Desert”. The FII in 2022 attracted the participation of more than 5,000 government officials, business leaders and investors from over 90 countries. During and after the meeting, China’s technology companies and investment institutions signed a number of cooperation agreements with Middle East countries. With the weakening investment sentiment in Europe and America, the Middle East has become an important destination for Chinese companies and funds to raise funds and explore new markets.
The 2022 FII continues to be popular, attracting many technology and financial leaders
The FII was founded in 2017 and has been held annually since then. The number of participants has continued to grow over the years. In 2022, there were more than 5,000 participants from more than 90 countries, including many technology and financial industry leaders such as JPMorgan CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and Ray Dalio, founder of Bridgewater Associates.
China-Middle East economic cooperation reached record highs during and after 2022 FII
During the 2022 FII, China and Middle East countries such as Saudi Arabia signed business and investment cooperation agreements worth more than $90 billion. After the meeting, the cooperation between the two sides continued to advance. According to Chinese and Saudi officials, China-Arab business trade increased by more than 30% year-on-year in 2022, reaching $670 billion, a quarter of which was trade with Saudi Arabia.
Chinese companies see great potential in exploring the Middle East market
With the “Belt and Road” initiative and the “Saudi Vision 2030”, there is huge room for cooperation between China and the Middle East. An increasing number of Chinese companies see the Middle East as an important overseas market. For example, Baosteel will invest $4.5 billion to build a factory in Saudi Arabia, and some Chinese cloud computing companies also plan to invest billions of dollars in Saudi Arabia in the next few years.
Many Chinese funds went to the Middle East for financing
In addition to companies, many Chinese investment institutions also regard the Middle East as an important financing channel. According to statistics, nearly 200 Chinese investment institutions have visited the Middle East for financing over the past year and a half. They have successively signed agreements with sovereign wealth funds and large family offices in the Middle East.
The Future Investment Initiative held annually in Saudi Arabia is still very popular. Under the background of weakening investment sentiment in Europe and America, deepening cooperation between China and the Middle East has become a general trend, and more Chinese companies and funds regard the Middle East as an important overseas market.