China pledges $20 billion bank for Gulf

Energy Sunday 15/July/2018 22:00 PM
By: Times News Service
China pledges $20 billion bank for Gulf

Muscat: Oman can count on up to $20 billion of Chinese aid towards the development of a stable and sustainable future, having played a key role in China’s Belt and Road policy.
Having embarked on its ambitious ‘One Belt, One Road’ (OBOR) campaign that promises an investment of trillions of dollars across the world in infrastructure, logistics, manufacturing and the trade sector, as China seeks to further advance itself as a global world player, the Gulf is seen as a key element in linking all of this together, with Oman’s unique geopolitical position playing an integral part in making that happen.
The move comes after China made the promise of providing this aid to the 21 countries that were part of the China-Arab States Cooperation Forum, which, spearheaded by Chinese President Xi Jinping, aims for closer economic cooperation between the Arab states and China.
“China and Arab countries are now entering into a new era,” said Yu Fulong, ambassador of China to Oman.
“The forum held in Beijing was very successful and has brought about a very important achievement,” the Chinese ambassador added.
“In Beijing, the declaration of the China Action Plan 2018-2020 was undertaken, and an action declaration on the Belt and Road policy was also announced,” the envoy said.
“China will be undertaking more than 100 programmes with Arab nations, and the relationship between China and the Arab nations is very important, in terms of peace and economic and social development,” he added.
“President Xi Jinping has taken special care to ensure Middle East development, in terms of how to develop the Middle East towards the march on the road to global participation and overcome conflict and war.”
The projects envisioned as part of Chinese development in the Middle East are across a host of sectors, including energy cooperation, infrastructure, trade, investment, nuclear and renewable energy and satellite programmes.
The aerospace commitments China plans include navigation systems and ecological remote-sensing satellites, in addition to sharing information on space exploration and aerospace cooperation.
“China has set up a credit bank of up to $20 billion (OMR8 billion) for countries that have programmes that create more jobs and benefit the nation,” revealed Fulong.
“In addition, $100 million will be given to countries such as Syria, Lebanon, Jordan and Yemen to help rebuild their infrastructure. $150 million will also be given to Palestine in a stability capacity.
“China is interested in making the Middle East a logistics hub that will provide connectivity between Central Asia, the Indian Ocean and East Africa, through the Middle East’s airports and seaports,” he added.
“To this extent, we have also set up a maritime cooperation centre for maritime development in the public service.”
Oman included, nine Arab nations are part of China’s OBOR programme, as part of a strategic partnership that covers mutual interests and major support to the participating nations.
“This year also marks the 40th anniversary of diplomatic relations between Oman and China,” said Fulong. “Two months ago, Oman’s Minister Responsible for Foreign Affairs, Yusuf bin Alawi, met with President Xi Jinping, where he exchanged a letter from His Majesty Sultan Qaboos with the bilateral understanding of both leaders towards the signature of the China Oman Strategic Partnership, which is based on treating each other as equals and with mutual respect.
“Fruitful results were also achieved over discussions with the Belt and Road plan, which connects with Oman’s 9th Five Year Plan and its Future Vision 2040,” he added. “This will include industrial development, capacity building, railways, industrial parks, power generation, logistics and ports, all of which will receive good finance support”.