Middle East expected to see more investment from China and east Asia, Savills says – The National

Middle East expected to see more investment from China and east Asia, Savills says – The National

The Middle East is expected to receive further investment from China and countries in east Asia, largely driven by funding from the Belt and Road Initiative, according to experts.

China, the world's second-largest economy, spent $71.1 billion (Dh261bn) between 2014 and 2017 in the Middle East as part of its Belt and Road Initiative. It has also pledged to invest $10.7bn by 2022 in Oman's Duqm Special Economic Zone.

"Trade wars could also impact how and where investments are made. Savills' report shows how China now plays a significant role in the Gulf and North African regions,“ Murray Strang, head of Savills Dubai, said in a webinar titled Trade Wars and Risk.

"This investment trend from China... [and] also [from] far east Asian countries is expected to further increase in the region as they recognise the strong value of the market and its fundamentals. For instance, recent major deals completed in the UAE such as Amazon/Souq and Uber/Careem are testament to the opportunities the market can offer.“

In 2019, the UAE was the largest foreign direct investment recipient in the sub-region, with flows of almost $14bn, growing by a third from the previous year, largely due to major investment deals in oil and gas,