Ladies and gentlemen,
Good afternoon,
I would like to express my compliments to His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, for such an important event.
I would also like to extend my greetings to
His Highness Prince Faisal bin Farhan Al-Saud, Minister of Foreign Affairs,
Your Excellency Khalid Al-Falih, Minister of Investment,
Your Excellency Ahmed Aboul Gheit, General Secretary League of Arab State,
Your Excellency Hu Chunhua, Vice Chairman of the National Committee of the Chinese People`s Political Consultative Conference National Committee.
Distinguished participants, government officials, representatives from the Chinese and Arab private sector, academia, other partners, and media. Ladies and gentlemen, it is a great pleasure to address the 10th Arab-China Business Conference.
The theme of “Collaborating for Prosperity” appropriately captures the more than two thousand years of commercial and cultural exchanges between China and Arab states. The co-operation along the silk road has witnessed the birth and development of two great civilizations – Chinese and Arab – which have achieved significant world accomplishments and have interacted and inspired each other across the Middle East and the Asian continent.
The world economy is currently facing great uncertainty due to high inflation, monetary policies leading to rising interest rates, bank failures, and increased risk of recession in developed countries This has intensified the volatility of currency and capital markets. Developing countries, in general, are bearing the severe consequences of these policies and the crumbling world governance system.
To address this situation, we need to continue building a multi-polar world where global forces are balanced. We must deepen the movement of globalization by establishing specific regional trade pillars, which will contribute to creating a new global economic order where developing and emerging economies have a stronger and influential voice. The emerging economies accounts for more than 50% of the global GDP, in terms of purchasing power parity, and will continue to grow in importance.
The Arab world, as an important member of the developing world, possesses diverse resources and has achieved remarkable development, demonstrating enormous potential. When we look back for centuries – the Arab world has been a very important region not only in terms of international trade, but also in science, technology and innovation. Looking to the future, the 4th industrial revolution offers great challenges and opportunities for the Arab countries and also for all emerging countries to deepen their re-industrialization strategies and implement modern industrial and innovation policies that are an integral part of the national development strategies.
Lets take some examples such as:
– Saudi Arabia Vision 2030 and National Policy for S, T & I;
– Bahrain National Research Strategy 2014-2024
– Egypt: Industrial Development Strategy 2050;
– United Arab Emirates: “We The UAE 2031” and
– the Arab Strategy for Science, Technology and Innovation to mention some.
Distinguished guests, it is important for building a more prosperous and co-operative world that countries established diplomatic relations based on mutual understanding, mutual respect, non-interference in internal affairs, and firm support for each other in safeguarding sovereignty, international fairness, justice, mutual assistance, and solidarity.
An important step towards reshaping the global economy and reducing dependency on a single currency is the initiative of China buying oil from Saudi Arabia in Chinese yuan (RMB) and exploring alternative means of settlement, such as gold. This move towards multi currency world and contributes to a more balanced and multi-polar financial landscape, reducing vulnerability to fluctuations, enhancing stability and expanding the international reach of local currencies.
Actually, a new and important market of energy is fast growing and creates a new basis of a multi-polar world.
China and Saudi Arabia have the potential to re-write the rules of the global energy market leading the way in diversifying currencies and embracing new models of economic collaboration. This partnership can also inspire the Global South to expand the intra and extra regional trade, offering greater possibilities for countries that are marginalized by the traditional international financial system.
However, it is important to acknowledge that use of local currencies it is a long, gradual and complex process. It requires cooperation among countries, financial institutions and collaborative polices and organizations such as the Belt and Road Initiative, the New Development Bank and the Islamic Development Bank to give a few examples.
The NDB is the first development bank created by emerging economies for emerging economies. Recently two important countries from the Arab World, UAE and Egypt became NDB members and we hope that they are the first of many others to come. The NDB’s primary goal is to promote sustainable and inclusive economic growth by financing infrastructure and sustainable projects. We believe that the best way to achieve this is by working together with our partners, shaping a new era of global prosperity that is characterized by innovation, resource mobilization and deepening partnerships. Expanding regional and intraregional trade and raising funds in local currencies of our member states are priorities for the Bank.
The NDB is ready to join hands with the multilateral development banks and other partners to work together to address challenges in Global South, providing sufficient resources to financing logistic, social and digital infrastructure. In addition we are focusing to finance all the actions contributing to projects that are essential to the fulfillment of the national climate gools that each countries assumed in the Paris Accord.
The NDB emerged as a true co-operation platform of developing countries and emerging markets. It is an instrument to face new and historic challenges, as well as a tool for the working collectively to create a more prosperous, equitable and multilateral world order.
Thank you very much. May the co-operation between the Arab world and China continue to thrive for the benefit of the world at large.