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1、S OIiverWyman SlEFCHINA-ARAB FINANCE AND INVESTMENT 2023 reportPREFACE IThe political mutual trust between China and the countries in the Arab region is based on a solid foundation Oflongstanding friendship between the two sides. Since the ancient Silk Road,s beginnings more than 2,000 years ago, Ch
2、ina-Arab dealings have been based on the principals of peaceful coexistence, openness and inclusiveness, and mutually beneficial, win-win situations. This also remains true since China,s transformation into a leader on the world stage, with the two sides not only treading similar paths to national i
3、ndependence and rejuvenation, but also representing a model of friendship and cooperation for the rest of the world.Economic and trade cooperation between China and the countries in the Arab region keeps getting more robust. One catalyst was when Chinajoined the World Trade Organization in 2001. The
4、 value of trade between China and the countries in the Arab region jumped from about US$14.7 billion in 2001 to about US$330 billion in 2021, a more than 22-fold increase. With the introduction of the Belt and Road Initiative a decade ago, China-Arab relations started to become more comprehensive an
5、d multifaceted, going beyond the trade of energy and goods, to the fields of finance, investment, science and technology, and culture.The prospects for financial investments between China and the countries in the Arab region are broad, in particular. At the China-Arab Summit last year, both sides ag
6、reed to make every effort to invest for the betterment of both Chinese and Arab communities. It is therefore clear that China-Arab relations have entered a new era of comprehensive and deepening development. The multifaced investment cooperation between China and the countries in the Arab region wil
7、l be in diverse areas, such as construction, transportation, climate and renewable energy, emerging payment methods, and video games and entertainment.Whether it is financial institutions, private capital, sovereign funds, or fintech companies, building bilateral relationships of mutual trust is an
8、important foundation for seizing these opportunities. The culture and history of China and the countries in the Arab region, respectively, are rich and unique. Although business ties are a positive start, there is a lot more still to be done. Building and maintaining a relationship of mutual trust c
9、annot be accomplished overnight. Besides beneficial exchanges, it requires a shared vision and unwavering commitment to a long-term relationship. At the same time, this foundation requires active understanding and cooperation in order to bridge cultural and historical differences.Through this report
10、, we will help readers better understand the economic and trade relations between China and the countries in the Arab region, as well as the financial and investment opportunities that lie within these relations. We look forward to the bright future that China and the countries of the Arab region ca
11、n continue to share together, based on their historical friendship, deepening economic and trade cooperation, and joint commitment to greater financial investment, which in turn will further promote the prosperity and development of the global economy.H.E. Long YongtuChairman OfSino-InternationaI En
12、trepreneurs Federation,Chief Representative of China,s WTO Negotiations,Former Vice Minister of Foreign Trade and Economic Cooperation, Former Secretary General of Boao Forum for AsiaPREFACE IlThe launch of the China-Arab Financial Investment Report will be one of the most significant events for Chi
13、na,s economy in 2023, not only providing an important impetus for the development of industry and trade in China and the countries along the Belt and Road, but also creating new opportunities for the internationalization of the RMB. The importance of the report lies both in the study itself, and in
14、the far-reaching impact it will bring.In October 2023, China,s Financial Supervision and Administration Bureau indicated that it would guide banking and insurance institutions to continuously improve the level of financial services for the countries along the Belt and Road, and promote the Belt and
15、Road, s high-quality development. As of the end of June 2023, 1 3 Chinese banks had already set up 145 first-tier institutions in 50 such countries, and six Chinese insurance companies had already set up 1 5 overseas branches in eight such countries. Similarly, following in the footsteps of various
16、Middle East sovereign funds, such as the Abu Dhabi Investment Authority, Kuwait Investment Authority, Qatar Investment Authority, and Saudi Public Investment Fund, the Mubadala Investment Company, which is the third-largest sovereign wealth fund in the United Arab Emirates, officially opened its Beijing office in September of this year.In October 2023, Jeffrey Sachs, an American economist and the director of the Center for Sustainable Development at Columbia Unive