Blog: OCIN the Cloud: Countries sneaking in the political vacuum of the Middle East (4)

* You can read full text as follows.

http://ocininitiative.maeda1.jp/202012PoliticalVacuumInMeEnglish.pdf

(Arabic Version)

Dec, 2020

4. China: Economy surpasses politics to complete ‘One Belt, One Road’

Today, China is the second largest military and economic power after the United States, but its political presence has traditionally been low in the Middle East. Economic presence, however, is remarkable. The Middle East is an important export destination for Chinese products. They are high-tech products like Huawei's 5G communication system as well as low-priced daily goods. Chinese high-tech products are now sweeping the market in the Middle East and caused the United States panic. For poor developing countries, China offers low-interest and long-term loans to construct infrastructures such as ports, roads, and railroads.

On the other hand, China imports large amounts of crude oil from Middle East countries. According to BP statistics, China imports 507 million tons of crude oil last year. The largest exporter to China was Saudi Arabia. Iraq and Iran were also major sources.

China puts the priority on the economic matters and works hard to expand exports and imports. China is carefully away from political and military disputes in the region. It stopped oil development activity in Iran. Instead, China buys Iranian crude oil with careful manner. Iran has a difficulty to find its customers. China proposed Saudi Arabia to build a joint venture refinery in its big market. China also entered the development of oil fields in Abu Dhabi, and got a contract for 3-D seismic survey[1].

China has financed a $ 60 million solar project through the Asian Infrastructure Investment Bank (AIIB) to Oman which keeps proper distance from Saudi Arabia and UAE[2]. AIIB is an international financial institution for development of infrastructure. It was established by China against to the Asian Development Bank led by Japan. China also provides bilateral loans to developing countries in Asia and Africa. But loans by China frequently resulted in a so-called "debt trap". When the borrower becomes difficult to repay, China, in return, borrows port or other facilities for a long time under favorable conditions. Thus Chinese "One Belt, One Road" is going to complete from China to Europe via the Middle East.

5. Qatar / UAE: Small but rich countries need no GCC

The power games not only by the United States, Russia and China outside the Middle East but also Turkey and Israel inside the Middle East, hide UAE and Qatar behind the scene. But they show their shape by making full use of abundant oil or natural gas revenues. Both countries are the member of the GCC (Gulf Cooperation Council) together with Saudi Arabia. Due to their small economy and population, UAE and Qatar used to obey to Saudi Arabia unconditionally. But after the "Arab Spring" in 2010 stormed across the Middle East, both countries became proactive and independent. It is oil or gas money that supports their prominent diplomatic attitude.

Qatari state-owned Al Jazeera TV is highly respected both in Arab and Western world. Al-Jazeera TV advocates freedom of the press. However, moderate Islamic countries like Saudi Arabia and Egypt are hostile to Qatar. They cut off diplomatic relations with Qatar in 2017 together with the UAE and Bahrain because Qatar didn’t sever ties with Muslim Brotherhood which they regard as Islamic extremists. Qatar strengthened the tie with Turkey which has suffered economic difficulties due to the sanction by the United States and the COVID-19. Qatar was not isolated within the GCC, but paved the way for independence from the GCC. Iran got profit from the GCC trouble. Qatar Airways now utilize Iran's airspace because it is prohibited to pass over the Arabian Peninsula. Iran earns transit fees which is a valuable income for dollar short Iran.

Unlike Qatar, the UAE is still in a honeymoon with Saudi Arabia. But close observation shows that UAE is one step or two ahead of Saudi Arabia. The restoration of diplomatic relations with Israel is one of examples. The independence of Palestinian national is an absolute precondition in the Arab world. UAE neglected such precondition. But there was no remarkable antipathy from other Arab countries. It was because the UAE was a small country with little political influence. In contrast with UAE, Saudi Arabia is unable to take the same action as UAE. Saudi Arabia claims to be the lord of Islam World. Saudi Arabia is bound by its own saying. UAE also took the same manner at civil war in Yemen. Yemeni government troops against the Iran-backed rebel Houthi are scratch team and internal conflicts took place constantly. The UAE, who had supported Southern Transitional Council (STC), withdrew its army with being out of patient. After all, Saudi Arabia is struggling alone to settle the dispute.

End

By Areha Kazuya

E-mail: Arehakazuya1@gmail.com

[1] Adnoc awards $519M contract to expand world’s largest 3D seismic survey

2020/11/26 Khaleej Times

https://www.khaleejtimes.com/business/local/adnoc-awards-519m-contract-to-expand-worlds-largest-3d-seismic-survey

[2] AIIB clears $60mn loan for Oman solar project

2020/3/31 Muscat Daily

https://muscatdaily.com/Archive/Business/AIIB-clears-60mn-loan-for-Oman-solar-project-5g52