(Yicai) Aug. 2 -- Since the start of this year, two-way investment between China and the countries on the Persian Gulf has boomed, and experts say this is due to years of steady cooperation and the needs of companies in both regions matching up.

China and the Gulf countries have a long history of close regional cooperation and economic and trade exchange, Mamoon Sbeih, president of the Association of Public Safety Communications Officers Middle East, told Yicai. They have been developing steadily over recent years and are now rapidly moving to a new level, he added.

Chinese companies have shown the world their ability to carry our projects and innovate technologies, said Mohamed Bahaa, chief executive of NGC International Advisory, who added that the willingness of Chinese firms to explore business opportunities in Gulf states is very consistent with their goal of rapid economic growth.

In Gulf countries, many people will consider buying projects and technologies directly from China, Bahaa said. Western companies also have a competitive advantage, but Chinese firms tend to be better in terms of reliability and fast delivery.

Many Chinese businesses have been investing in projects in the Gulf this year, while the sovereign wealth funds of Saudi Arabia and other Middle Eastern countries continue to increase their weighting in the Chinese market.

In January, a consortium led by Chinese photovoltaic panel maker Jinko Solar won a contract to develop a 300-megawatt Saad solar project in Saudi Arabia. The consortium also signed a 25-year power purchase agreement with Saudi Power Procurement. In June, Chinese electric vehicle manufacturers received at least three large investments from the Middle East.

Saudi Arabia, the largest economy and consumer market in the Middle East, introduced its Vision 2030 initiative in 2016 to attract global investors. Jink Solar’s project was part of that.

Along with Saudi Arabia, other countries in the Middle East, such as the United Arab Emirates and Qatar, have become popular among foreign investors thanks to their strategic location, resources, market potential, transformation, vision, and development opportunities.

Overseas firms investing in Gulf countries should find reliable local partners to jointly conduct feasibility studies on projects and avoid economic losses and credit damage, Bahaa suggested.

Saudi Arabia’s laws and regulations on investment and entrepreneurship are changing rapidly, so companies should hire local professionals to better understand the fast-changing business environment before making a move, Sbeih noted.

Editor: Futura Costaglione