- The Middle East received $39 billion in Chinese investments under the Belt and Road Initiative, marking a 102% increase.
- Energy investments hit $24.3 billion, including an $8 billion oil refinery deal in Iraq, alongside $11.8 billion in green projects.
- China reduced its engagement in Latin America and Pakistan, signaling a strategic shift toward Middle Eastern economies.
The Middle East has emerged as the top recipient of investments under China’s Belt and Road Initiative (BRI), securing a massive $39 billion in 2024. This development highlights the region’s growing significance in Beijing’s global economic strategy.
A Record-Breaking Surge in Investments
According to the China BRI Investment Report 2024, the Middle East witnessed a remarkable 102% increase in Chinese construction contracts. This surge underscores the region’s strengthening role as a strategic partner in China’s ambitious infrastructure program.
Saudi Arabia led the list, attracting $18.9 billion in BRI-related engagements. Iraq followed with $9 billion, while the UAE secured $3.1 billion in investments. These figures reflect China’s focused investment approach in the region.
Energy and Green Projects Drive Growth
China’s investments in the oil and gas sector reached an all-time high of $24.3 billion. A major highlight was an $8 billion oil refinery deal in Iraq, reinforcing China’s commitment to securing energy resources.
In addition to fossil fuels, China also allocated $11.8 billion toward green energy initiatives. These include solar, wind, and waste-to-energy projects, demonstrating a broader shift toward sustainable investments in the region.
Declining Engagements Elsewhere
While China ramped up its investments in the Middle East, other regions saw a decline in engagement. Latin America recorded its lowest level of Chinese investments in a decade. Additionally, funding for Pakistan’s China-Pakistan Economic Corridor (CPEC) dropped by 40% after experiencing a sharp decline the previous year.
The shifting investment landscape suggests a recalibration of China’s global economic priorities, with a stronger emphasis on Middle Eastern economies.
Future Outlook
Experts predict that China will continue prioritizing energy, mining, and infrastructure projects in the Middle East. This focus aligns with Beijing’s long-term strategy of economic expansion and energy security.
With global trade uncertainties on the rise, China’s deepening ties with the Middle East signal a strategic pivot that could shape the region’s economic landscape for years to come.
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Last Updated on March 1, 2025 by Safiya K
