A report by HSBC forecasts significant growth in business and investment flows across the MENAT region in the next five years.
According to HSBC, the MENAT – Middle East, North Africa, and Turkey – region will benefit from increased business, investment and trade as trade between the Gulf Cooperation Council (GCC) and China has outpaced the combined trade between the GCC and the United States and the Euro Area. A new report by HSBC, titled ‘The China-MENAT Corridor: Unlocking Growth Potential,’ reveals USD 178 billion in untapped trade potential between China and MENAT until 2027.
MENAT – An acceleration in business and investment flows
The report sheds light on the burgeoning economic corridor linking China and the MENAT. This corridor is poised to experience a substantial acceleration in business and investment flows over the next five years. The report’s release at the HSBC China-MENAT Summit in Shanghai and Beijing is a testament to the bank’s commitment to facilitating these transformative partnerships.
Bridging China and MENAT’s economic landscape
Addressing an audience of business leaders, Stephen Moss, regional chief executive (MENAT) at HSBC Middle East, emphasized the unprecedented economic changes underway in the MENAT region. Key players like Saudi Arabia and the UAE are spearheading diversification and energy transition initiatives, fueling robust growth. Moss highlighted this opportune moment for Chinese investors and businesses to enter the Middle East, seizing both inbound and outbound investment opportunities. HSBC’s extensive presence in both markets and its global network covering over 90% of global GDP uniquely position it to connect clients with emerging opportunities in capital markets, international investments, technology, infrastructure, and energy transition along this vibrant economic corridor, according to Moss.
Capitalizing on synergy and innovation
HSBC’s report presents a comprehensive overview of trade and investment dynamics between MENAT and China. It delves into the growth of trade and foreign direct investment flows while recognizing the potential for enhanced economic collaboration based on their respective strengths in energy resources and manufacturing.
Mark Wang, president and chief executive officer of HSBC China, pointed out the growing interest from Chinese clients in tapping into MENAT’s vast market potential, particularly in the domains of innovation and sustainability. The synergy between these emerging markets is palpable, with Chinese companies contributing expertise in digital innovation, climate tech, and novel business models. Meanwhile, MENAT offers a promising investor base, a burgeoning demand for renewables, and a youthful population, all of which present valuable capital and market opportunities.
HSBC and MENAT
HSBC’s extensive heritage in both MENAT and China traces its roots back to the late 19th century. Established in Hong Kong and Shanghai in 1865, HSBC has been an integral part of China’s economic history. Simultaneously, its presence in the Middle East dates back to 1889. Currently, HSBC maintains a significant presence in MENAT, operating in eight markets, including Qatar.
Two complimentary reports can be found here and here.
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