The mega ambitious Belt and Road Initiative (BRI), which is being implemented by China and host of partner countries around the world, will bring “more of the Middle East to the world and more of the world to the Middle East”.
The BRI initiative, also known as the Silk Road Economic Belt or the 21st-century Maritime Silk Road, will create multiple opportunities for business, trade and investment almost all over the world, including Qatar, said a senior official of Qatar Free Zones Authority (QFZA) at an event yesterday.
Lim Meng Hui, Chief Executive Officer (CEO) Qatar Free Zones Authority’s (QFZA) in his opening address at the Silk Road Exhibition & One Belt One Road Conference, organized by the Doha-based Dar Al Sharq Group, noted that the BRI initiative is a global development strategy adopted by the Chinese government involving infrastructure development and investments in 152 countries and international organizations across the globe.
Initiated in 2013, BRI is an umbrella concept by China for harnessing international collaboration through the development of economic cooperation by pooling investments, sharing resources, technology and skills, creating a win-win situation for all.
Hui said that this initiative is “a bid to enhance regional connectivity and embrace a brighter future”. It advocates international economic cooperation leveraging the comparative strengths of all countries, serving the development needs of the participating countries, and building a more balanced and inclusive global industrial chain. It aims to create new trade corridors.
“These new trade corridors create multiple opportunities for businesses, industries and consumers, to expand their global footprint and be able to access more of the global trade market. For Qatar and its investors, it brings more of the Middle East to the world and more of the world to the Middle East,” Hui noted.
Speaking about the QFZA and the opportunities, he said that it has it is holding QR3.64bn ($1bn) fund to promote investment and economic growth in the in the country. The QFZA, according to recent reports, has already approved investment applications from major international and local companies valued at more than QR1bn by the end of August this year.
The CEO also provided insight on the economic and trade potential of Qatar, with special focus on the role of Qatar Free Zones in the development of Qatar’s economy.
“QFZA is a regulator, zones developer, holding at the same time a $1bn fund to promote investment and economic growth. We have nearly 40 square kilometers of well-planned Zones,” Hui said highlighting the importance of Qatar’s investments in One Belt, One Road Initiative. He added: “Our direct role is to attract investments and long-term partners to Qatar, especially in three major sectors: logistics, chemicals and emerging technologies.”
He further said that these sectors are chosen to capitalise on Qatar’s vast natural gas reserves; world-class infrastructure, high internet and IT penetration to make Qatar an excellent hub for tech operations, across automotive, marine, aviation, pharmaceuticals, and chemical industries.
“Our vision is to create a diversified and flourishing Qatari economy, through developing the right business partnerships for Qatar. We intend to do this by helping and facilitating you, potential investors, to be on board for this purpose,” noted the CEO.
On Qatar-China bilateral relations, he said that the year 2018 marked the 30th year of bilateral ties between the two countries, which enjoy strong trade and investment linkages. Chinese and Qatari companies have collaborated in many deals, particularly those in infrastructure standout.
Qatar and China’s economic relationship which is already on a very strong footing is slated to grow. QFZA has positioned itself to be one of Qatar’s catalysts in this growth under BRI. It opens up the doors for the potential investors in both Qatar and China.
For Chinese companies, Qatar offers a relatively secure and stable investment partner. It helps with improved access to Qatar’s high value consumer base and provides them with a strategic presence in the GCC and broader Mena region – a business hub from where they can easily reach 60 percent of the world population.
On the scope of expanding bilateral cooperation between Qatar and China, Hui said that for Qatari companies, it provides an improved access and co-investment opportunities with global Chinese companies; Expertise and experience of Chinese companies in mega project delivery; Potential 3-way partnership opportunities for Qatari companies in Chinese investments in Central Asia and Africa where Qatar has some established relationships; as well as Technological expertise in downstream petrochemicals and other major industries.
“I am happy to share with you that in 2019, abided by the Belt and Road Initiative, QFZA has signed four MoUs separately with China Council for Promotion of International Trade (CCPIT), Xiamen Free Trade Zone, Shenzhen Cross-Border E-Commerce Association and China Harbor Group. Currently, China Harbor is implementing a clean energy bus assembly plant in QFZ, and also the project of ship to shore cranes, opening up doors to immense opportunities,” Hui added.
“Besides these, there are many investment and infrastructure opportunities in the Free Zones for Chinese companies. Lusail city in Doha also has much potential for smart city solutions, across sectors of energy, water, transport and city services.”
Highlighting Qatar’s economic potential he said that today Qatar has close ties with leading economies around the world. “Qatar with 25 trillion cubic metres, has the world’s third largest natural gas reserves, is the world’s largest LNG exporter with a production of 77 million tonnes per annum and forecast to grow to 110 million tonnes per annum by 2024,” he said. He also said that the country has enormous economic potential by virtue of its geographical location as it is strategically located at the crossroads of global trade.
“You can reach 60 percent of the world’s population within 8 hours. Within this time, we in Qatar can be connected to over 10 key markets comprising around 2 billion people and over $ 5 trillion in GDP. Besides Qatar’s own strong domestic demand and purchasing power parity, we are surrounded by very promising neighboring markets,” he said.
The economic growth and development within the region, which includes Mena region and Asian economies, would be a great asset for Qatar’s future economic and trade prospects. It has regional access and air and sea connectivity to many markets, which are rather difficult to access for many countries. Qatar which has very good relationships with most of them is very well positioned to serve these markets. Qatar’s potential has increased by virtue of the world-class infrastructure it possesses today. It has excellent air and sea transport connectivity.
In his concluding remarks, he thanked the organizers of Silk Road Exhibition & Conference. “I urge the participants, especially the potential investors to seriously evaluate, consider and avail themselves of the golden opportunity that Qatar and China offer under the Belt Road Initiative,” he said.
Hui also expressed his gratitude and pleasure to be a part of the event which has been thoughtfully organized under the patronage of the Minister of Transport and Communications, H E Jassim Bin Saif Al Sulaiti.
