$20b China package for MideastJuly 11, 2018
BEIJING: The UAE is participating in the China-Arab Cooperation Forum, which kicked-off on Tuesday in Beijing, in the presence of Chinese President Xi Jinping and a number of high-level delegations from Arab states, and Arab League Secretary-General Ahmed Aboul-Gheit.
Xi pledged a package of $20 billion in loans, and about $106 million in financial aid, to Middle East nations, as part of what he called an “oil and gas plus” model to revive economic growth in the region.
China would offer aid worth 100 million yuan ($15 million) to Palestine to support economic development, besides providing a further 600 million yuan ($91 million) to Jordan, Lebanon, Syria and Yemen, he added.
Development was key to resolving many security problems in the Middle East, Xi told a gathering with representatives of 21 Arab nations in the Chinese capital.
“We should treat each other frankly, not fear differences, not avoid problems, and have ample discussion on each aspect of foreign policy and development strategy,” he said.
A consortium of banks from China and Arab nations, with a dedicated fund of $3 billion, will also be set up, Xi added. said.
It was unclear what the relationship between the bank consortium, financial aid and the overall loan package would be.
The loans will fund a plan of “economic reconstruction” and “industrial revival” that would include cooperation on oil and gas, nuclear and clean energy, Xi said.
He urged “relevant sides” to respect the international consensus in the Israel-Palestine dispute, and called for it to be handled in a just manner, so as to avoid regional disruption.