MENAT and China’s Belt and Road Initiative

One glance at a map of China’s Belt and Road Initiative shows how the Middle East, North Africa & Turkey are well placed to take advantage of this US$900 billion infrastructure development plan stretching from Asia to Europe that aims to connect China more closely with the rest of the world.

King’s visit fuses Saudi Vision 2030 and Belt and Road initiative

Saudia Arabia voiced support for China's Belt and Road initiative and was willing to deepen cooperation with China in trade, investment, energy, education, technology, information security and other areas.

Saudi Arabia's Deputy Crown Prince, Second Deputy Prime Minister and Minister of Defense Mohammed bin Salman attended the G20 summit last year in Hangzhou, China and presented "Saudi Vision 2030," which he drafted. The China-Saudi Arabia high-level joint committee held its inaugural meeting last August, and a number of cooperative agreements on politics, energy, finance, investment, accommodation, water resources, quality control, technology, people-to-people exchanges have been signed between Beijing and Riyadh. This deepens the cooperation between "Saudi Vision 2030" and the Belt and Road initiative.

"Saudi Vision 2030," with economic structural reforms and diversified development as its goals, was put forward as a method to cope with the challenges posed by low oil prices. With the lifted sanctions on Iran, increased oil yields and US shale oil production reaching a new high, the international oil price has plummeted, and Saudi Arabia, relying heavily on oil production, has seen a sharp fall in revenue.

During the Hangzhou G20 summit, Saudi Arabia's Foreign Minister Adel al-Jubeir claimed that China, as an economic power, is able to play an important role in "Saudi Vision 2030." As the largest oil exporter, Saudi Arabia, with its significant strategic position and status in the Islamic world, will contribute to the construction of the Belt and Road initiative. Riyadh looks forward to more diversified economic cooperation and more frequent cultural exchanges with Beijing.

After Saudi king, China warmly welcomes Israel's prime minister

China welcomed Israeli Prime Minister Benjamin Netanyahu on Monday just days after hosting Saudi Arabia’s King Salman and the signing of deals worth as much as $65 billion with Riyadh, as China steps up its tentative engagement with the Middle East.

China, Israel announce innovative comprehensive partnership

Netanyahu voiced his country's adherence to the one-China policy, urging taking the opportunity of the new partnership to enhance cooperation in areas such as clean energy, agriculture, investment, finance and medical services.

According to a joint statement released on Tuesday, the two countries agree to closer exchanges among young technological personnel, and cooperation in joint labs, a global technology transfer center, innovation parks and an innovative cooperation center.

China and Israel expect closer cooperation in air pollution control, waste management, environmental monitoring, water conservation and purification, as well as hi-tech fields, said the statement.

Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as water resources, agriculture, medical care and clean energy.

Israel hopes to participate in the Belt and Road Initiative, he said, adding that his country expects to see China play greater role in Middle East affairs.

Israel and China a 'Marriage Made in Heaven,' Says Netanyahu

China and Israel are both keen to increase cooperation on economic matters. For Beijing, Israel is a particularly attractive partner as China attempts to become a global leader in the high-tech sector. Israel is also a potential hub for China’s “Belt and Road” initiative, given it geographic location. For now, both sides seem content to accept the necessity of more limited political and security cooperation while they attempt to harvest the benefits of an expanded economic partnership.

That diplomatic approach was given a name during Netanyahu’s visit, which saw the two sides agree to elevate their relationship to an “innovative comprehensive partnership.” Innovation is the key word: it refers to cooperation on technological breakthroughs, something China is keen to do. According to Xinhua, a joint statement released by the two countries pegs a number of fields for increased cooperation, including “air pollution control, waste management, environmental monitoring, water conservation and purification, as well as hi-tech fields.” China and Israel also plan to establish “a global technology transfer center, innovation parks and an innovative cooperation center,” Xinhua reported.

Netanyahu particularly expressed Israel’s interest in joining the Belt and Road, and invited Chinese companies to participate in infrastructure projects within Israel. Both he and Li also talked of advancing negotiations on a free trade agreement, with Li promising to seek to conclude negotiations as soon as possible.

Netayahu, meanwhile, told Xi that Israel expects China to play a growing role in the Middle East, echoing similar statements by Saudi Arabia’s King Salman over the weekend. Speaking before a gathering of businesspeople from both countries, the Israeli prime minister encouraged China “to assume its rightful place… on the world stage.”

“We are your perfect junior partner for that effort,” Netanyahu added. “[…]I believe this is a marriage made in heaven.”

WITH RED SEA MEGA-CITY, SAUDIS EYE ECONOMIC UNITY WITH EGYPT, JORDAN

“If they are really going to develop this in desert areas of all three countries, you’d expect Israeli technology perhaps to have a role to play."

Saudi Crown Prince Muhammad bin Salman Al Saud’s flagship idea may seem overly ambitious – to build a mega-city known as Neom along the Gulf of Aqaba and the Red Sea that extends across the borders to Jordan and Egypt.

Indeed, its proponents are describing the planned 26,500 square kilometer city in almost messianic terms. “Neom is positioned to become an aspirational society that heralds the future of human civilization by offering its inhabitants an idyllic lifestyle set against a backdrop of a community founded on modern architecture, lush green spaces, quality of life, safety and technology in the service of humanity paired with excellent economic opportunities,” says Neom’s website.

PM says new bilateral partnership on innovation underlines China’s readiness to apply Israeli technology for the benefit of its people; also says he discussed Chinese role in rail route from Asia to Israeli Mediterranean ports

Prime Minister Netanyahu: Well, actually I was talking about the economic side and the logistical possibility. China wants to increase the access of Asia — China specifically — to the world. There are two ways of doing it: One is the mutual exchange of Israeli technology with Chinese business. I think we’re well en route to doing that. A third of the investment in Israeli high technology is Chinese. We welcome more. And we would like to advance the free trade association, which would enable a two-way movement to proceed. We agreed that we’d accelerate it.

Secondly, there is a transportation route that we’re planning now, which is a rail connection between Asia and between the Red Sea and Mediterranean ports (such as Eilat and Ashdod). We think it could be of interest to China. So we’ve been discussing that as well.

Riyadh, Beijing launch ‘digital silk road’ initiative

Al-Mishaigeh said that Saudi Arabia has started implementing the desired social and economic transformation in accordance with the Vision 2030 plan. He said that the city of Neom will be the focus of artificial intelligence, automation, manufacturing and renewable energy in the world. Neom is a $500 billion mega city on the Kingdom’s Red Sea coast, which is part of the national push to diversify the economy. The 26,500 square meters zone will focus on industries including energy, water, biotechnology, food, advanced manufacturing and entertainment, Saudi Crown Prince Mohammed bin Salman has said. “Neom will attract private as well as public investments and partnerships. The zone will be backed by more than $500 billion over the coming years from the Saudi Public Investment Fund, local as well as international investors,” he said. The Saudi delegation also visited the Huawei Research Center in Shanghai to learn about the latest technologies in infrastructure, smart cities and the Chinese experience in enabling the digital economy. The conference was organized by the Chinese Electronic Space Administration and Zheijiang Province’s government with the participation of leading figures from governments, international organizations, companies, technical sector departments as well as non-government agencies.

Egypt signs $10bn deal with Saudi Arabia to support Neom project