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Lujiazui Financial City Authority Establishes Office in Riyadh as Regional Investment Gateway

Lujiazui Financial City Authority in Shanghai, China, receives the office data plate in Riyadh (Asharq Al-Awsat)
Lujiazui Financial City Authority in Shanghai, China, receives the office data plate in Riyadh (Asharq Al-Awsat)
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Lujiazui Financial City Authority Establishes Office in Riyadh as Regional Investment Gateway

Lujiazui Financial City Authority in Shanghai, China, receives the office data plate in Riyadh (Asharq Al-Awsat)
Lujiazui Financial City Authority in Shanghai, China, receives the office data plate in Riyadh (Asharq Al-Awsat)

China's Shanghai Lujiazui Financial City Authority (SLFCA) has opened its representative office in Riyadh as a commercial investment gateway to access the Middle East markets.

Lujiazui Finance and Trade Zone is the only national-level development zone in China that focuses on the finance and trade industries.

China (Shanghai) Pilot Free Trade Zone and the city's top attraction for entrepreneurs, talent, and investors are in Pudong New Area, where Lujiazui is located.

A high-ranking delegation from the Lujiazui Financial City Authority in Shanghai visited the King Abdullah Financial District (KAFD) and announced the establishment of the first office in the Middle East and the second in the world after the London office in 2016.

eWTP Arabia Capital, a venture capital investment firm based in Riyadh City with a branch office in Beijing, organized the event.

- Modern techniques

During the event, eWTPA signed a strategic agreement with the Lujiazui Financial City Authority to stimulate comprehensive cooperation in commercial, money, and talent interactions between China and Saudi Arabia by synchronizing connectivity across various sectors, including banking, trade, innovation, and technology.

A Memorandum of Understanding (MoU) was also signed by eWTPA, SLFCA, and KAFD District Management and Development Company (KAFD DMC) to improve partnerships between Shanghai and Riyadh, the two countries' principal financial centers, and open new horizons for strategic cooperation.

With the support of eWTPA, the Riyadh office of the Lujiazui Financial City Authority will become the main gateway connecting Shanghai to the Kingdom.

The office will become an official platform linking all stakeholders in the markets of the two countries and strengthening partnership relations in trade, modern technologies, finance, and other sectors.

- Stimulating the private sector

KAFD DMC CEO Gautam Sashittal stressed the importance of cooperation between the Kingdom and China, pointing out that effective partnership models are incentives that enhance business and pave the way for companies to grow and benefit from new markets.

"This strategic agreement will pave the way for meaningful engagement in the days ahead and ensure smooth working relationships for individuals and businesses," Sashittal added.

For his part, founder and managing partner of eWTPA Jerry Li told Asharq Al-Awsat that the Kingdom will be the first stop to expand the Lujiazui Financial City Authority in the Middle East.

The Authority chose Riyadh as the first stop to launch into the regional region in light of the rapidly developing Saudi-Chinese economic relations, said Li.

- Double the business turnover

Li continued that opening the office in Riyadh helps double the trade movement between the two countries and accelerates the pace of private investments.

Li added that the partnership is essential to Riyadh and Shanghai and has promising potential to generate significant value.

He revealed Shanghai's desire to harness its expertise to support the Kingdom in achieving Vision 2030 and that SLFCA's office is an entry point that allows in-depth knowledge of and benefits from the thriving Chinese sectors, such as trade, modern technologies, and money.

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Business

Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
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Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)

After South Korea's president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country's currency and shaking confidence in its economy.

The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol's attempt to scrap civilian rule in early December.

Business and consumer confidence in Asia's fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.

Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon's removal from office and bring him to justice.

That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.

Choi has pledged to do all he can to end "this period of turmoil" and resolve the political crisis gripping the country.

- Constitutional question -

At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament's decision to impeach Yoon.

It must do so by a two-thirds majority, however. And because three of the court's nine seats are currently vacant, a unanimous vote is required to confirm the suspended president's removal.

Otherwise, Yoon will be automatically returned to office.

Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.

After an acrimonious day in which lawmakers from Yoon's party erupted in protest, the country's newest acting president sought to project calm.

"Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilization," Choi said Friday.

The 61-year-old career civil servant has inherited a 2025 budget -- adopted by the opposition alone -- which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.

"There are already signs the crisis is having an impact on the economy," Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence.

"The crisis is unfolding against a backdrop of a struggling economy," he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.

"Longer term, political polarization and resulting uncertainty could hold back investment in Korea," Leather wrote, citing the example of Thailand, another ultra-polarized country whose economy has stagnated since a coup in 2014.

- Democratic resilience? -

But other economists noted that the South Korean economy has so far weathered the chaos well.

As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilize the markets, and the Kospi Index has lost less than four percent since the start of the crisis.

"Like everyone, I was surprised when Yoon took those crazy measures," Park Sang-in, a professor of economics at Seoul National University, told AFP. "But there was a resilience of democracy."

"We come from being an underdeveloped country to one of the world's most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth," he added.

"Korean society was mature enough to counter his crazy actions."