(Yicai) Oct. 23 -- Tech giant Huawei Technologies, e-commerce behemoth Alibaba Group Holdings and telecoms firm ZTE Corp. were among more than 300 Chinese companies that showcased their latest innovations in artificial intelligence, Internet of Things as well as data and cloud tech at the recent GITEX Global exhibition in Dubai, as Chinese firms look to expand their footprint in the Middle East.

Middle Eastern countries highly value Chinese firms’ investment in the region, and Middle Eastern investment funds are also showing more interest in investing in China, Xie Zichen, chief executive officer of Chinese tech startup Renwu Technology, told Yicai at the expo, which is the largest technology exhibition in Dubai.

Electric vehicles are an emerging fields favored by Middle Eastern capital. The Abu Dhabi-government-backed CYVN Holdings, for example, invested more than USD3.3 billion in Nio last year.

Middle Eastern conglomerates used to allocate a lot of their assets to the European and American markets. But in the past two years, Middle Eastern countries, especially Saudi Arabia and the United Arab Emirates, have strengthened their trade and economic relations with China.

Middle Eastern investors require Chinese companies to have long-term investment strategies and the capability for local research and development and manufacturing, Xie said. For example, if it is an automobile manufacturer, it needs to have its own factory that produces its own brand.

Electric vehicles are an emerging fields favored by Middle Eastern capital. Sovereign wealth fund the Abu Dhabi Investment Authority, for example, invested more than CNY20 billion (USD2.8 billion) in Nio last year.

Sales of Chinese automobile brands in the Middle East are expected to reach between 500,000 and 600,000 autos this year, Xie said. As the three major trends of intelligence, connectivity and electrification continue to develop, they will create a market worth billions of dollars.

"This market is a very big opportunity for companies like us," Xie said.

The per capita gross domestic product of the six Gulf Cooperation Council countries is high, comprising a population of 50 to 60 million, Xie said. The region stretches into Central Europe and North Africa, which represents a market of more than 100 million people. The urban governance and development levels of cities such as Dubai and Abu Dhabi are on par with London, New York and Singapore.

The National Innovation Center par Excellence of China and the Dubai Future Foundation are linking arms to explore future co-operation and investment models, said Xiao Ling, general manager of the co-operation and education department of the Jiangsu Industrial Technology Research Institute.

The two parties inked a memorandum of understanding at the SuperBridge Summit, which was part of the GITEX proceedings. The MoU is the first step in establishing this connection, Xiao said.

Editor: Kim Taylor