Sino-MENA: Eastern promises

Regional Views
Saudi-China

Although the preferred playing fields of GCC sovereign investment funds have traditionally been Europe and the US, we now see their sands shifting towards China. This momentum shows no signs of abating. What is more, Saudi Arabia is now ready to make its mark on Chinese equity markets, with a strategic approach to purchasing assets. This week, we cover how: 

  • Despite record investments in US stocks by GCC funds in 2020, larger portions of capital are being directed to an eastern rival: China.
  • Chinese equity markets offer exciting new opportunities. The kingdom now wants to catch up with regional rivals in terms of securing these eastern ambitions. 
  • The UAE’s sovereign wealth fund recently surpassed that of Singapore to become the second largest holder of Chinese A-shares. With Saudi Arabia now stirring, this position may be challenged in the years ahead.

 

Florence Eid-Oakden, Ph.D, Chief Economist

Abdelgadir Shukri, Olivia Philipon, Analysts

The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.

To access this report, please click here.

 

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