INTHEBLACK August 2025 - Magazine - Page 20
F E AT U R E
“This is going to be a major bridge that will not shake because
there is ambition on both sides and there’s political willingness
on both sides to look towards Asia.”
DR GOPI KRISHNA BHAMIDIPATI, INTERNATIONAL RELATIONS EXPERT
rebalancing of the GCC’s oil exports from
the West to Asia, particularly China
and India. “This has been ongoing since
the early 2000s with the rise of China and
its growing energy demands, but it has taken
on a new dimension with the United States
becoming self-sufficient in terms of energy
supplies,” Kateb says.
Some Gulf States are also trying to limit
their reliance on the US dollar for trade
transactions, with China eager to have
more of its oil exports sold and settled
in Chinese currency.
EYES ON THE PRIZE
Gulf–Asia trade is forecast to rise from
US$451 billion (A$696 billion) in 2023
to US$682 billion (A$1 trillion) by 2030,
according to Asia House, a UK-based
think tank.
Freddie Neve, lead Middle East associate
at the advisory service, says the Middle East’s
pivot to Asia is undeniable, as evidenced
A Chinese container
ship at Khalifa Port
in Abu Dhabi, the
United Arab Emirates.
This strategic port is
being developed with
Chinese backing.
20 INTHEBLACK August 2025
by huge trade deals, high-level bilateral
political exchanges and growing investment
by sovereign wealth funds in Asia.
Underlining the shift, Asia House forecasts
that Gulf–China trade will overtake Gulf
trade with Western countries in 2027.
“That will be a significant watershed
moment,” Neve says.
He adds that Gulf economic
diversification has created opportunities
for Asian firms in areas including
construction, infrastructure, technology,
sustainability and financial services. “So, we
only see the Gulf–Asia relationship being
primed for further growth.”
China and India are the biggest Asian
players in the Middle East, thanks in part
to the Gulf States’ “Look East” policies.
The Belt and Road Initiative, a massive
China-led regional infrastructure
development strategy, has been instrumental
in ramping up infrastructure and trade
connectivity with the Gulf States.
