(Yicai) Feb. 27 -- HSBC is committed to assisting Chinese companies in going public in the Middle East, promoting the connection of capital markets, and enhancing cross-border listing opportunities between Saudi Arabia, the United Arab Emirates, and China, the chief executive officer of UK lender HSBC’s UAE branch told Yicai in a recent interview.

Over the past decade, bilateral investment between the UAE and China has reached tens of billions of dollars, Mohamed Al Marzooqi said at the Abu Dhabi Investment Forum that was recently held in Shanghai where he accepted an exclusive interview by Yicai.

This is especially true of highly competitive industries such as e-commerce, solar panels, lithium batteries, and electric vehicles, Marzooqi said at the forum where many strategic investment opportunities in fields such as finance, infrastructure, technology, and healthcare were discussed. The UAE's non-oil trade with China reached USD81 billion in 2023.

The Middle East has become a major destination for Chinese enterprises’ global layout, Marzooqi said. There are currently over 6,000 Chinese companies operating across the UAE. The UAE is already a significant trading partner of China in the Middle East, and bilateral trade is expected to grow to USD200 billion by 2030.

Green Tie-Ups

In fact, many Chinese companies going global are riding the wave of the Middle East’s diversification and transformation. The UAE has set a bold target of achieving net-zero emissions by 2050, making it the first country in the Middle East and North Africa region to commit to such a goal. China is expected to play a key role in this transformation.

Since its inception, the Abu Dhabi Investment Forum has been delivering on its mandate of investing in long-term growth sectors and diversifying beyond the Middle East, Marzooqi said. Historically, the region’s relationship with China was very limited from a sector perspective to infrastructure and contracting.

However, there has been a shift in this trend. For example, in the renewables space almost half of the projects being executed in the UAE are being done by Chinese companies. And Middle Eastern investors are significantly increasing their focus on Chinese green technology, particularly in solar, electric cars, and battery tech.

The GCC Sovereign Wealth Fund investments in China’s green sector surged more than 200-fold in 2023 from 2022 to USD2.3 billion, Marzooqi said. The Gulf’s push toward net-zero emissions by 2050 is driving investments in Chinese photovoltaic and EV technology, while strategic partnerships between Chinese tech firms and Middle Eastern giants like Masdar, PIF, and ACWA Power are expanding across infrastructure, energy, and AI-driven industries.

The UAE has invested USD50 billion in renewables in 70 countries over the last decade, with USD50 billion more earmarked to be invested at home and abroad over the coming decade. And it has set the bold target of establishing itself as a top global producer of low-carbon hydrogen by 2031, Marzooqi added.

Local Challenges

New countries or regions always present some challenges in terms of culture, language, and understanding the business ecosystem, Marzooqi said. Relationship-building, trust, and patience are key, and the Middle East values strong personal networks over immediate transactions.

“One of the things we’d like Chinese companies to do more in the UAE and the wider region, is to execute Public Private Partnerships or PPP. I think that will be extremely advantageous for Chinese businesses, as it brings financial and operational benefits given long-term financing, along with shared investment risk as well as innovation and knowledge-transfers,” he said.

The Abu Dhabi Investment Office chose London-based HSBC last year as their preferred international financial partner in Asia, Marzooqi said.

The HSBC team in the UAE partners very closely with the team in China to provide services such as pre-market entry advice and research, market diligence and opportunity overviews and EPC contracts which are a particular focus of Chinese clients. HSBC also provides regional solutions on guarantees, debit and credit, cash management and foreign exchange.

Middle East-Asia Bridge

HSBC is uniquely positioned as the leading global bank bridging Asia and the Middle East, helping clients navigate regional capital flows, Marzooqi said. HSBC provides services including green bonds and sustainability-linked loans, private equity and venture capital facilitation as well as project finance and joint ventures that help connect Chinese green tech firms with Middle Eastern sovereign wealth funds.

In recent years, an increasing number of institutions have suggested that Chinese businesses could explore the capital markets in the Middle East, Marzooqi said. The UAE’s expanding capital markets exceeded USD1 trillion in market capitalization at the end of 2024. Chinese companies can benefit from Middle Eastern capital pools, while Middle Eastern investors can gain access to China’s growth sectors.

HSBC led on 65 percent of the total value of initial public offerings in the UAE’s financial markets between 2022 to now, raising USD26.2 billion. "Our expertise in regional investor preferences and Chinese capital requirements allows us to tailor financial solutions that unlock growth across both markets," he said.

Editor: Kim Taylor