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The former Lebanese minister said the Free Trade Agreement (FTA) between China and the GCC is a “game changer” that will boost the region and “stimulate economic transformation in the Middle East”.
Although the agreement has not yet been signed, there are strong signs that it will be finalized this year after Chinese Foreign Minister Qin Gang called for it to be completed “as soon as possible” following an earlier phone call with his Saudi counterpart, Prince Faisal bin Farhan.
Dr Nasser Saidi, formerly Lebanon’s Minister of Economy and Industry, who writes for Arab Gulf Business Insights (AGBI), a next-generation business news platform, sees many opportunities from the landmark agreement to benefit China and other countries in the UAE and Saudi Arabia.
largest export market
Today, China accounts for one-fifth of the GCC’s total trade and is the region’s largest export market.
Energy is a key focus, he argues, and that “free trade agreements that remove barriers to trade will boost trade-investment linkages” and could have a positive impact on a wide range of areas including direct investment, technology, climate and the environment.
“Laws and regulations will be modernized to meet the provisions of the free trade agreement, thereby accelerating domestic economic reforms in the GCC,” he said.
higher income
“These gains from trade, investment and technology transfer will lead to higher income and growth rates in the GCC and, through spillover effects, higher growth rates in the wider MENA region.”
The energy sector will be at the heart of the deal. “China is a world leader in renewable energy technology, becoming a strategic partner for the GCC as it diversifies its energy mix by investing in renewable energy and climate technologies,” he said.
Dr Nasser added: “The free trade agreement will also lead to a rapid expansion of trade and investment in digital trade and financial services, high technology, renewable energy and climate technology, artificial intelligence, automation and robotics.”
One fundamental sector that would benefit from free trade agreements is tourism. Other countries in the region will be added to China’s “approved list” – joining the UAE, while cooperation between the government and China can help strengthen infrastructure, transport networks and logistics operations.
GCC investors will also have “privileged access to Chinese opportunities, free from foreign exchange and capital controls,” while the “symbiotic relationship” between China and the GCC sovereign wealth fund (the world’s largest) will not only deepen, but would strengthen their global financial market power. – trade arab news agency
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