At the special meeting on "China-Arab investment opportunities promotion", overseas cooperation parks and Chinese enterprises introduced investment opportunities in the Arab region and expressed their desire to further promote the vigorous development of China-Arab investment cooperation.


Liu Aimin, Chairman of China Africa TEDA Investment Co., Ltd.


According to the IMF assessment report, Egypt is the only country in the Middle East and North Africa region to achieve positive real GDP growth in 2020, with a growth rate of more than 3.5%. Meanwhile, Egypt is also one of the five fastest growing countries in the world in 2020. TEDA cooperation zone has been built and developed in Egypt for 12 years. Up to now, the cooperation zone has attracted 102 enterprises, attracting investment of 1.2 billion US dollars, accumulative sales of 2.5 billion US dollars, paying taxes of about 170 million US dollars, directly employing 5,000 people and employing more than 30,000 people driven by industry. By 2020, all enterprises in the zone will be profitable. TEDA Cooperation Zone has become an industrial park with the best comprehensive environment, the highest investment density, the highest unit output and the largest concentration of Chinese enterprises in Egypt. The cooperation zone has obtained the exclusive approval from the Egyptian government to carry out import and export trade and set up bonded logistics projects. The development company of the park has become the only Chinese enterprise that can carry out international bonded logistics, general trade and transit trade in Egypt. At present, the cooperation zone is carrying out bonded trade and logistics business around building materials and second-hand cars, so as to expand the functions of the zone, form the cooperation between manufacturers and merchants, and closely connect the trade between China and the Middle East and North Africa. The cooperation zone is willing to cooperate with local developers of warehousing, logistics, bonded, trade, commercial and residential real estate to build the park with an open attitude.

1.jpg

Wang Lu, Executive General Manager of Investment Center, Investment Department, China Road and Bridge Engineering Co., Ltd.


In recent years, with the steady development of bilateral relations, more and more Chinese enterprises have come to Morocco for investment and cooperation. First, Morocco's economy is growing steadily. China is Morocco's third largest source of imports. According to the World Bank's Doing Business 2020 report, Morocco ranks 53rd out of 190 countries, up seven places from 2019. Morocco is the only country in Africa and the Middle East that has signed free trade agreements with Arab countries, African countries, the European Union, the United States and Canada. With high economic openness and wide market exposure, products produced in Morocco have duty-free access to 56 countries, covering the market of one billion people. The comprehensive cost has obvious competitive advantage, with sound infrastructure, competitive water and electricity cost, abundant labor force, low labor cost, high comprehensive quality of population, and relatively low export cost. For example, the shortest sea transportation from Tangier Port to Europe takes only 30 minutes, and the shortest sea transportation to the United States takes only 5 days. Tangier Technology City, as a flagship project of domestic energy cooperation between China and Morocco, has received special policy support from the Moroccan government. Since 2018, more than a dozen Chinese enterprises have set up factories in Tangier, most of which are located in Tangier, laying a foundation for Chinese enterprises to gather together.


Mao Guohua, Deputy General Manager of Asia and Europe Branch of China Gezhouba Group International Engineering Co., Ltd.

2.jpg

In order to promote the investment cooperation between China and Arab countries, we should start from the following points: first, enterprises should choose the key projects that fit the "One Belt And One Road" initiative and Arab countries' strategies, so as to enjoy the preferential policies of China and Arab countries, which is beneficial to investors. Second, with regard to investment projects in Arab countries, cooperation between Chinese enterprises and Arab enterprises and between Chinese financial institutions and Arab financial institutions should be encouraged so as to help solve the financing of investment projects as soon as possible. Third, it is suggested that some countries improve foreign investment legislation and supporting legal systems, and improve investment risk sharing mechanisms. Fourth, explore the feasibility of Chinese companies participating in the design, equipment or materials as local tier 1 contractors and investment projects. Chinese equipment and materials are cheap and of good quality.