Joint Economic Cooperation Committee Formed between Saudi Arabia, Kurdistan

Part of the meeting between the Saudi business delegation and the members of the Federation of Chambers of Commerce and Industry in the Kurdistan Region. (Asharq Al-Awsat)
Part of the meeting between the Saudi business delegation and the members of the Federation of Chambers of Commerce and Industry in the Kurdistan Region. (Asharq Al-Awsat)
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Joint Economic Cooperation Committee Formed between Saudi Arabia, Kurdistan

Part of the meeting between the Saudi business delegation and the members of the Federation of Chambers of Commerce and Industry in the Kurdistan Region. (Asharq Al-Awsat)
Part of the meeting between the Saudi business delegation and the members of the Federation of Chambers of Commerce and Industry in the Kurdistan Region. (Asharq Al-Awsat)

A Saudi economic delegation ended its consultations and meetings in Erbil on Tuesday by reaching an agreement with the chairman and members of the Federation of Chambers of Commerce and Industry in the Iraqi Kurdistan Region to form a joint body for economic cooperation.

Sami bin Abdullah al-Obeidi, chairman of the Federation of Saudi Chambers of Commerce, said the meetings focused primarily on ways to expand economic and investment cooperation between the two sides.

“The investment law in Kurdistan provides good opportunities for Saudi businessmen to invest in the region and we are all trying to enable the private sector to play an active role in this field and to form task forces to activate investments in the near future,” he stated.

For his part, Dara Al-Khayat, president of the Federation of Chambers of Commerce and Industry in the Kurdistan Region, stressed that meetings with the Saudi economic delegation represented the first step on the way to enhance economic and trade cooperation between the two sides.

“We have seen a firm desire by the members of the Saudi delegation to implement investment projects in Kurdistan and we hope that this desire would be translated into practical developments in the near future,” Khayyat told Asharq Al-Awsat, noting that the first projects would focus on the fields of agriculture industry and trade.

The Saudi delegation, headed by Saudi Ambassador to Baghdad Abdulaziz Al-Shamri and that included 35 senior Saudi businessmen and investors in various fields, had arrived in Erbil on Monday.



African Leaders in Beijing Eyeing Big Loans and Investment

People pass by signage for the Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China, 01 September 2024. (EPA)
People pass by signage for the Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China, 01 September 2024. (EPA)
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African Leaders in Beijing Eyeing Big Loans and Investment

People pass by signage for the Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China, 01 September 2024. (EPA)
People pass by signage for the Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China, 01 September 2024. (EPA)

African leaders descend on China's capital this week, seeking funds for big-ticket infrastructure projects as they eye mounting great power competition over resources and influence on the continent.

China has expanded ties with African nations in the past decade, furnishing them with billions in loans that have helped build infrastructure but also sometimes stoked controversy by saddling countries with huge debts.

China has sent hundreds of thousands of workers to Africa to build its megaprojects, while tapping the continent's vast natural resources including copper, gold, lithium and rare earth minerals.

Beijing has said this week's China-Africa forum will be its largest diplomatic event since the Covid-19 pandemic, with leaders of South Africa, Nigeria, Kenya and other nations confirmed to attend and dozens of delegations expected.

African countries were "looking to tap the opportunities in China for growth", Ovigwe Eguegu, a policy analyst at consultancy Development Reimagined, told AFP.

China, the world's number two economy, is Africa's largest trading partner, with bilateral trade hitting $167.8 billion in the first half of this year, according to Chinese state media.

Beijing's loans to African nations last year were their highest in five years, research by the Chinese Loans to Africa Database found. Top borrowers were Angola, Ethiopia, Egypt, Nigeria and Kenya.

But analysts said an economic slowdown in China has made Beijing increasingly reluctant to shell out big sums.

China has also resisted offering debt relief, even as some African nations have struggled to repay their loans -- in some cases being forced to slash spending on vital public services.

Since the last China-Africa forum six years ago, "the world experienced a lot of changes, including Covid, geopolitical tension and now these economic challenges", Tang Xiaoyang of Beijing's Tsinghua University told AFP.

The "old model" of loans for "large infrastructure and very rapid industrialization" is simply no longer feasible, he said.

The continent is a key node in Beijing's Belt and Road Initiative, a massive infrastructure project and central pillar of Xi Jinping's bid to expand China's clout overseas.

The BRI has channeled much-needed investment to African countries for projects like railways, ports and hydroelectric plants.

But critics charge Beijing with saddling nations with debt and funding infrastructure projects that damage the environment.

One project in Kenya, a $5 billion railway -- built with finance from Exim Bank of China -- connects the capital Nairobi with the port city of Mombasa.

But a second phase meant to continue the line to Uganda never materialized, as both countries struggled to repay BRI debts.

In central Africa, Western and Chinese firms are racing to secure access to rare minerals.

The continent has rich deposits of manganese, cobalt, nickel and lithium -- crucial for renewable energy technology.

The Moanda region of Gabon alone contains as much as a quarter of known global reserves of manganese, and South Africa accounts for 37 percent of global output of the metal.

Cobalt mining is dominated by the Democratic Republic of Congo, which accounts for 70 percent of the world total. But in terms of processing, China is the leader, at 50 percent.

Mounting geopolitical tensions between the United States and China, which are clashing over everything from the status of self-ruled Taiwan to trade, also weigh on Africa.

Washington has warned against what it sees as Beijing's malign influence.

In 2022, the White House said China sought to "advance its own narrow commercial and geopolitical interests (and) undermine transparency and openness".

Beijing insists it does not want a new cold war with Washington but rather seeks "win-win" cooperation, promoting development while profiting from boosted trade.

"We do not just give aid, give them help," Tsinghua University's Tang said.

"We are just partners with you while you are developing. We are also benefiting from it."

But analysts fear African nations could be forced to pick sides.

"African countries lack leverage against China," Development Reimagined's Eguegu said.

"Some people... think you can use the US to balance China," he said. "You cannot."