INTHEBLACK August 2025 - Magazine - Page 22
F E AT U R E
The “33 Parrots Pass”
in Kyrgyzstan is part
of the ancient Silk Road
trade route.
of hydrocarbons from the Gulf States,
which hold some of the world’s largest
reserves of oil and natural gas. Japan and
South Korea are also longstanding importers
of Gulf energy reserves.
Neve contends that the move to access
Asian firms’ expertise and products in
construction, telecommunications and
consumer electronics, among others,
completes “one of the most fundamental
geopolitical and economic shifts of our time”.
The activities of sovereign wealth funds
in Gulf countries are also crucial. For
example, Abu Dhabi-based MGX is an
artificial intelligence-focused investment
vehicle founded by sovereign wealth fund
Mubadala and AI company G42. It is
expected to help build data centres and
infrastructure worth hundreds of billions
of dollars.
Cliff Ip FCPA, a member of CPA
Australia’s Divisional Council for Greater
China, and managing director and CEO
of investment banking platform Wings
Securities in Hong Kong, says sovereign
wealth funds have increased their investments
in Asian markets, notably in fintech, green
energy, infrastructure and manufacturing.
“The Gulf area needs different investments
to help change the direction of the economy
and reduce the reliance on oil and gas,
so there are lots of opportunities,” he says.
Ip, who travels to the Gulf States regularly
22 INTHEBLACK August 2025
to facilitate investment deals, also thinks
the status of Hong Kong and Dubai as major
international financial centres creates the
opportunity for cross-border collaboration
to advance sustainable finance across the
two markets.
REWARDS AND RISKS
The GCC’s push for economic diversification,
symbolised by the Saudi Vision 2030 plan
and the UAE Vision 2021, has seen non-oil
sectors flourish.
The Gulf States are especially craving
the AI and tech infrastructure and expertise
possessed by tech giants such as Alibaba,
Tata and Samsung. Gulf-based financial
institutions are also expanding into
South-East Asia.
China and India aside, Bhamidipati
believes there is also significant potential
for other South Asian countries such as
Pakistan, Bangladesh and Sri Lanka to
develop a stronger trade presence in the Gulf.
He notes that South Asia occupies the
“strategic land bridge” between the powerful
economies of East Asia and the energy-rich
GCC countries. However, a fragmented
economic and trade approach has stymied
real growth in some nations outside the
juggernauts of China and India.
Bhamidipati’s hope is that this South
Asian bloc can strengthen its ties with
the GCC nations through partnerships
