Chinese Economic Crisis an Incentive for GCC to Diversify
Worries about the Chinese economic crisis have panicked markets around the world, and the Middle East is no exception. Fears emerged that China, with its dollar currency peg, would curb investment in key Gulf economic sectors such as real estate and tourism. The UAE is now the largest Middle East market for Chinese products, and trade between the two countries exceeds $169 billion. The UAE intends to boost trade with China by 40 % in the next 5 years, however recent meltdown could potentially have a negative impact. While GCC investors have already been looking beyond the BRICS, China’s slowdown could be a further incentive for GCC economies to accelerate their diversification strategies.
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