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BIZCHINA / Center

More Mideast-China investment 'hampered by culture'

(AFP)
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.

(For more biz stories, please visit Industry Updates)

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