GCC, China to Talk Investment, Oil Supply

Hundreds of representatives of public and private sectors from GCC oil producers and China will converge on Manama this month to discuss mutual investment and GCC oil supplies to the most populous nation on earth. The 23-24 March 2010 conference comes in the aftermath of the global fiscal turbulence, a surge in trade between the two sides and a steady increase in China's oil imports from the region, the largest crude oil basin in the world. The conference, which will attract ministers and other officials and businessmen from GCC and China, also follows an intensified drive by the world's oil superpower Saudi Arabia to shift emphasis from the US to southeast Asian markets for its hydrocarbon exports.

"This forum comes amid extremely complicated circumstances. It is very important for both sides in terms of trade and investment co-operation," said Isam Fakhru, Chairman of the Bahrain Chamber of Commerce and Industry and head of the Federation of the Dammam-based GCC Chambers. "This significant meeting is aimed at benefiting from the massive business opportunities available in the two regions, increasing bilateral trade, exploring investment scopes and discussing a free trade agreement (FTA) between the two sides," he said in a statement sent to Emirates Business. Fakhru said he expected several agreements to be reached at the conference, noting the two sides "strategically need each other".

"Each party realises this fact. China recognises the vital position of the GCC as a major oil supplier, given its increasing reliance on this region for its hydrocarbon needs. This is underscored by the fact that China has only about 1.8% of the world's oil reserves and accounts for as high as 22% of the world's total population. It has become the second-largest oil consumer after the US."

His figures showed China imported around 55% of its oil needs from the GCC in 2008 and the share is expected to surge to 65% in 2015. Between 1999 and 2008, GCC-Chinese trade jumped by at least 40% annually to reach about US$70 billion in 2008, including nearly US$42 billion worth of exports by GCC countries and US$28 billion worth of imports.- Business 24/7