China’s Middle East investment ‘pivot’ highlighted by mega UAE desalination plant
- China-built Taweelah Independent Water Plant in Abu Dhabi is capable of producing 900,000 cubic metres (238 million gallons) of fresh water per day by reverse osmosis
- China is seeking closer integration with the energy-rich Middle East through its Belt and Road Initiative amid ongoing geopolitical tensions
China’s shift towards the Middle East continued as the subsidiary of a state-owned firm completed testing of a desalination plant in the United Arab Emirates last week, with the project capable of delivering up to 900,000 cubic metres (238 million gallons) of fresh water per day.
The US$900 million Taweelah Independent Water Plant in Abu Dhabi was constructed by Shandong Electric Power Construction Corporation III (SEPCO3), a wholly-owned subsidiary of the Power Construction Corporation of China (Power China).
PowerChina, having signed the deal to build the plant in 2019, claimed it is the world’s largest operational membrane-driven desalination facility.
Reverse osmosis involves applying pressure to push seawater through a semi-permeable membrane to remove salt and impurities to produce drinking water.
“[The project] has considerably eased the UAE’s constraints on freshwater resources, and benefited people’s livelihoods, the local economy, and social development in the country,” said PowerChina, who added the project could benefit nearly one million people a year.
PowerChina, having signed the deal to build the plant in 2019, claimed it is the world’s largest operational membrane-driven desalination facility.
The Rabigh Phase III seawater desalination plant in the Saudi Arabian port city of Jeddah provides fresh water to more than two million homes.
The project has created more than 3,500 local jobs, and directly contributed about US$200 million to the Saudi Arabian economy, according to Power China.
China will expand its reach in MENA to further export its overcapacity and geopolitical influence
“Although China has become more cautious in outbound investment, it has pivoted towards the Middle East and North Africa (MENA), with a share rising from 8 per cent in 2015-2020 to 17 per cent in 2021-23,” said Gary Ng, a senior economist with Natixis Corporate and Investment Banking.
China has invested in various infrastructure projects in the Middle East, including energy, utilities and transport, as the region is generally more accepting of Chinese investment, Ng added.
There are also synergies in helping the Middle East to achieve policy goals, such as accelerating green transition and improving livelihood, he said.
“China will expand its reach in MENA to further export its overcapacity and geopolitical influence,” Ng added.
Welcome China: Riyadh airport first in region to receive Chinese tourism award
The Middle East is China’s leading regional source for oil, accounting for more than 48 per cent of its imports last year, according to Chinese customs.
As of last year, the Belt and Road Initiative’s cumulative engagement had exceeded US$1 trillion since its inception in 2013, according to the report, with over 60 per cent associated with construction.
In January, four Middle Eastern countries – Saudi Arabia, Egypt, the UAE and Iran – along with Ethiopia also joined the Brics bloc alongside Brazil, Russia, India, China and South Africa.
