Industry insiders say that Chinese venture capital companies (VCs) are making increasing inroads in the Middle East with more aggressively priced deals and by exploiting the growing vacuum that Western competitors are leaving in the region.
This development comes against the backdrop of warming relations between China and several Middle Eastern states and a series of regional conferences this year aimed at bolstering investment in the area.
Although from a security perspective, the United States remains the dominant player in the Middle East, China has recently positioned itself as a mediator: Beijing brokered the normalization of diplomatic ties between Iran and Saudi Arabia, the two biggest rivals in the region. China also welcomed Egypt, Iran, Saudi Arabia and the United Arab Emirates to the BRICS group of major emerging economies, a move that has strengthened Sino ties with the Middle East.
In an interview with Al-Monitor, Lim Say Cheong, chief executive of the Saudi Venture Capital Investment Company, a Sharia-compliant investment firm based in Riyadh, said that Chinese VC activity in Saudi Arabia has increased.
