(Yicai) Nov. 8 -- Saudi Arabia and the United Arab Emirates are making full use of the enormous exposure they are getting at the ongoing China International Import Expo to not only showcase their unique products, but also to market the services they can offer to Chinese companies which wish to enter the Middle Eastern market.

Representatives from the First Abu Dhabi Bank, Mashreqbank and the Ras Al Khaimah Economic Zone all have a presence at the Saudi Arabia exhibition area at the CIIE, which runs until Nov. 10.

An Arab firm participating in the CIIE for the first time plans to use the expo to strengthen its connections with different provinces, cities and big companies to explore more opportunities for collaboration in the Gulf region, the company’s head of China investment told Yicai.

Five years ago, it was mainly central government and state-owned enterprises that bid for large infrastructure projects in the region, he said. However, in the past two years, more small and medium-sized tech companies and growth-oriented enterprises have been going to the Middle East.

Saudi Arabia, for example, is a core country in the Arab and Islamic world and they all share a common language. The kingdom launched the "Saudi Vision 2030" in 2016 to drive national transformation and is now in a period similar to China's "Reform and Opening-up," the person said.

The six Gulf Cooperation Council countries, together with North Africa, form a large market of over 100 million people. If a company can establish a foothold in Saudi Arabia, it can serve as a base to reach the entire market.

The photovoltaic sector, in particular, offers significant opportunities for Chinese firms. Saudi Arabia's National Renewable Energy Office, which is responsible for more than half of the new solar power capacity in the country's renewable energy roadmap, has conducted around seven rounds of bidding since 2017, adding 17 gigawatts of solar power capacity. And the number of such projects is set to increase.

And in mining, Chinese companies can leverage Saudi Arabia's favorable geographic location. The kingdom has good trade relations with Europe and the US and is close to mineral-rich regions in North Africa. This, combined with China's industrial strengths, allows Chinese firms global coverage. In today's context of trade embargoes, it's not easy to find such a place, he added.

However, there are challenges, such as the significant difference in the perception of time and contracts between Chinese and Saudi businessmen. Before entering the region, companies should improve their understanding of the country’s customs and business practices and bring in a reliable local partner.

The Middle East's inclusive geopolitical environment, open-minded consumers and the rise of new demographics have attracted many Chinese car companies to the region, said Ron Zheng, global senior partner and head of automotive business in Asia at German consultancy firm Roland Berger.

Chinese auto brands such as Changan Automobile, Geely Automobile Holdings, Haval and BYD are seizing market share in the Gulf region, a market that was once dominated by Japanese carmakers such as Toyota Motor and Nissan.

"The remarkable performance of Chinese car companies in the Middle East showcases the competitiveness of Chinese brands, which includes keen insight into overseas markets, rapid construction of the industrial chain and continuous innovation in business models," Zheng said.

Editor: Kim Taylor