Publication: Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa
Date
2009
ISSN
Published
2009
Author(s)
Pigato, Miria
Abstract
The spectacular economic rise of China
and India over the past two decades has accelerated their
trade with Africa, Latin America, and the Middle East and
North Africa (MENA). Their demands for oil, gas, and other
natural resources have been driving new relationships with
MENA countries based not only on energy but also on trade,
investment, and political ties. Indeed, Dubai has become the
center of a new Silk Road, the intersection where people,
capital, and ideas meet. And while the financial crisis that
hit global markets in 2008 has placed downward pressure on
growth, these new relationships are likely to deepen in the
coming years. The report's main messages are as
follows: a) demand for energy from China and India is
expected to increase substantially in the future, thus
greatly benefiting oil producing countries in the MENA
region; b) the oil exporters in the Gulf have laid big bets
on economic diversification and knowledge enterprises, bets
they might win, but with lots of risk along the way. Oil
price volatility may threaten the sustainability of the
recent expansion; and c) the growth of China and India
offers new market opportunities for the countries in MENA.
Besides energy, potential opportunities, for fertilizers,
petrochemicals, crude materials, agricultural products, and
a number of manufactured goods where MENA has strong
comparative advantages, remain unexploited.
Citation
“Pigato, Miria. 2009. Strengthening China's and
India's Trade and Investment Ties to the Middle East
and North Africa. Orientations in Development. © World Bank. http://openknowledge.worldbank.org/handle/10986/2626 License: CC BY 3.0 IGO.”