In a concerted effort to facilitate Chinese businesses’ global expansion, the Chinese government, along with state-owned enterprises, has actively assisted companies in venturing into the Middle East and North Africa (MENA) region.
Successful collaborations with Saudi Arabia, the UAE, Egypt, Oman, Morocco, and other countries have resulted in the establishment of five strategic industrial parks, serving as robust springboards for Chinese enterprises entering the Middle Eastern markets.
Operated by Chinese firms, these industrial parks provide a familiar and friendly business environment for Chinese companies. The parks facilitate seamless operations by offering similar business practices and services, minimizing adaptation costs arising from cultural differences. Strategically located in local free trade zones or economic zones, these parks enjoy various policy incentives, such as tax exemptions, trade facilitation measures, and investment benefits, significantly benefiting Chinese enterprises.
This report, part of the A-Zhong Industry Research Institute’s “Middle East Business Digest” series, delves into the policies, regulations, industry trends, market demands, competitive landscape, and potential trade opportunities in the realms of Sino-Arab investments, trade, and engineering construction.
Furthermore, these industrial parks serve as platforms for Chinese enterprises to collaborate, share resources, and collectively address market risks. This clustering effect not only enhances the overall strength of the enterprises but also fosters industrial cooperation and technological exchange between China and the Middle East.
Reflecting on the past, the establishment of Chinese industrial parks in the Middle East has yielded remarkable results. As more Chinese companies choose to establish a presence in these parks, they are poised to contribute to mutually beneficial partnerships, providing new growth opportunities for Chinese enterprises and supporting economic growth and social progress in Middle Eastern countries.
1. China-Saudi (Jizan) Industrial Park:
Established in 2016, the China-Saudi (Jizan) Industrial Park is a result of collaboration between China and Saudi Arabia. This park, a crucial capacity cooperation project, aligns with Saudi Arabia’s “2030 Vision” for economic diversification and sustainable development. Positioned in the Jizan Economic City, this industrial park covers an extensive area, focusing on industries such as steel, petrochemicals, silicon, and ship services. Enjoying key policy support, it has become a flagship project for China’s overseas cooperation.
2. China-UAE Industrial Capacity Cooperation Demonstration Zone (ICCDZ):
Located within Abu Dhabi’s Khalifa Industrial Zone (KEZAD), the China-UAE ICCDZ is a significant Belt and Road Initiative cooperation project. Since its inception in 2017, this 12.2 square-kilometer zone has become a focal point for Sino-UAE economic and trade collaboration, recognized as the country’s first Belt and Road industrial capacity cooperation zone.
3. China-Egypt TEDA Suez Economic and Trade Cooperation Zone:
Established in 2008, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone is a national-level overseas economic and trade cooperation zone. It has evolved into an international industrial base covering manufacturing, logistics, bonded zones, technology development, trade, and modern services. Positioned in the Suez Canal Economic Zone, its strategic location and comprehensive facilities make it the only industrial park in Egypt where companies can directly settle.
4. China-Oman (Duqm) Industrial Park:
Located in Oman’s Duqm Special Economic Zone, the China-Oman (Duqm) Industrial Park is a core project for China-Oman cooperation. Initiated in 2016 with a planned investment of 67 billion RMB, the park spans nine industries, including petrochemicals, natural gas, and building materials. With a vast land area and diverse investments from multiple provinces, this park breaks the traditional “go it alone” approach, promoting cross-border investment and cooperation.
5. Mohammed VI Tangier Tech City, Morocco:
A paradigm of major capacity cooperation between China and Morocco, the Mohammed VI Tangier Tech City project involves significant collaboration between Chinese enterprises, Moroccan Foreign Trade Bank, Tangier Mediterranean Port Group, and the Tangier-Tetouan-Al Hoceima region government. Spanning 2167 hectares in Tangier, this modern industrial city aims to integrate industries, commerce, residences, public services, and entertainment, aligning with the development philosophy of “North industry, South city.”
These strategic industrial parks are emblematic of China’s commitment to fostering economic cooperation and shared development with the Middle East and North Africa. As these parks continue to attract more enterprises and facilitate cross-border collaborations, they are poised to play a pivotal role in shaping the economic landscape and ensuring sustainable growth in both China and the MENA region.