More Mideast-China investment 'hampered by culture'
Updated: 2007-09-04 11:08
Greater investment between the Middle East and China is being hampered by a lack of understanding between the two cultures, a conference in the United Arab Emirates heard on Monday.
The warning came despite trade between the two doubling since the year 2000 and projections of massive investment by some Middle Eastern states in Asia over the next five years - with most of that money going to China.
"There is a cultural gap that acts as a barrier" to trade, the chairman of the Dubai-based Gulf Research Centre told delegates at the China-Middle East Investment Forum in Dubai.
Abdulaziz Sager said he feared the lack of a common language as well as a limited knowledge of business culture between both regions could prevent economic ties from developing further.
His concerns were echoed by China's Huang Xiaoxiang, the vice governor of China's Sichuan Province, who called for greater interaction.
Huang told delegates that China had to do more to tap liquidity in the Middle East, particularly in the wealthy Gulf Cooperation Council (GCC) states.
GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
"There is a lack of effective communication between both sides. We need to tighten understanding of cultural backgrounds and deepen our research on Middle East investment funds," Huang said.
Sager said the oil-rich GCC members in particular will have to increase their cultural understanding of China as the energy- and commodity-hungry colossus looks set to continue its phenomenal annual double-digit growth.
Annual trade between the Middle East and China has doubled to US$240 billion since 2000, the Dubai International Financial Centre (DIFC) said in a statement.
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