China is targeting Middle East demand for industrial lighting and low voltage equipment, as part of its strategy to plug in to the forecast $150 billion investment in the region’s power sector over the next 20 years.
The push will be spearheaded by China’s first government-supported national pavilion at Middle East Electricity 2004, the region’s premier pan-Arab power generation and electricity trade show and conference, to be held in Dubai next February.
Up to 30 companies will be accommodated in the pavilion backed by the China Council for the Promotion of International Trade and the Zhejiang Provincial Foreign Trade and Economic Relations Bureau.
The decision to take part in Middle East Electricity 2004 comes in the wake of a massive rise in Chinese electrical equipment exports to the region.
According to official Chinese customs figures, sector exports rose by 43.14 per cent to $244.81 million, from January to April, compared with the same period last year. The UAE led the way, with a $87.13 million share, up 26.2 per cent on the first four months of 2002.
The increase reflects growing business links with the Middle East, especially the Gulf Arab states. Trade between China and the region grew from just $2.42 billion in 1991 to over $14.6 billion in 2001. The GCC is China’s largest regional market, accounting for two thirds of all its business with the area.
Within the GCC, Saudi Arabia is China’s biggest market, making up nearly 50 per cent of total trade volume. The UAE is in second place accounting for around 30 per cent. In 2002 trade between China and the UAE reached $3.9 billion, up 38 per cent on 2001.
Although Saudi Arabia is China’s biggest regional business partner, the UAE, and Dubai in particular, plays a crucial role in facilitating Chinese trade in the region, according to Yang Weiguo, Chinese Consul General in Dubai.
Weiguo estimates that there are over 400 Chinese businesses in the UAE, most of them in Dubai.
“More and more Chinese companies are selecting Dubai as their product distribution centre for the region,” he said. “As a trade hub Dubai plays an important role in the economic trade exchange and co-operation between China and the GCC states.”
According to Grace Zhong, manager, Dubai China Centre for Promoting and Organising International Trade (DCPO), all the companies taking part in Middle East Electricity 2004 will be showcasing products for the first time in the Middle East.
