Chinese industrial manufacturers are increasing supply agreements for freshwater infrastructure and desalination systems in the Gulf, primarily in the UAE and Saudi Arabia. Gulf utilities including ACWA Power plan to allocate at least $15 billion annually over three years to Chinese suppliers.
Gulf crude exporters are expanding their market share in China as Iranian shipments fall, according to data from analytics firm Vortexa. Saudi crude shipments to Chinese ports are projected to exceed 2 million barrels per day in October 2026, with 75% allocated to Sinopec and PetroChina. Total Middle Eastern crude arrivals into China are expected to reach around 4.5 million barrels per day.
Middle Eastern sovereign funds invested US$14.2 billion in Hong Kong and mainland China during the first nine months of 2026, according to Global SWF. UAE funds ADIA and Mubadala contributed US$2.5 billion and US$800 million, respectively. The capital targeted sectors including advanced manufacturing, biotechnology, artificial intelligence, and consumer markets.
SABIC and Dubai Holding led regional contract awards in September across energy and construction sectors. A major highlight was Dubai Holding awarding an AED 5 billion contract to China State Construction Engineering Corporation Middle East (CSCEC ME) for its new headquarters and residential towers. In Saudi Arabia, SABIC Agri-Nutrients awarded an EPC contract valued at nearly $3.47 billion to Samsung E&A.
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