Xi pledges industrial boost for Middle East

President Xi Jinping addresses the Arab League at its headquarters in Cairo on Thursday, stressing the need to advance industrialization in the Middle East. PANG XINGLEI / XINHUA

President Xi Jinping stressed the need to "advance industrialization in the Middle East", a statement backed up with pledges of billions of dollars in loans and investments to help make that happen, in a speech to the Arab League at its headquarters in Cairo on Thursday afternoon.

"China's competitive production capacity and the human resources in the Middle East, when combined, will deliver more and better job opportunities for the region," said Xi, who is on a three-nation trip to the Middle East. Xi left Egypt on Friday for Iran, the third and last stop on his visit.

Xi announced that China will set up a $15 billion special loan for industrialization in the region to be used on production capacity cooperation and infrastructure projects.

China also will launch a $20 billion joint investment fund with the United Arab Emirates and Qatar to primarily invest in traditional energy, infrastructure development and high-end manufacturing industries in the region, Xi said.

The president said China and the Middle East "need to make good use of the coming five years", a crucial period to jointly build the Belt and Road Initiative, China's plan to link Asia, Africa and Europe via trade and infrastructure investment.

Observers called the concrete measures proposed in the president's latest Middle East policy speech pragmatic and effective in addressing the region's thirst for stability and economic reinvigoration.

Li Guofu, a researcher in Middle East studies at the China Institute of International Studies, said Xi had set the target of realizing the measures proposed in the upcoming five years "in order to make sure benefits are delivered faster to the people of both China and the Middle East".

Xi's speech displayed China's latest philosophy in how to help address regional hot spot issues, and has reaffirmed China's commitment to not interfering in the domestic affairs of other countries, Li said.

Wang Yiwei, director of the Institute of International Affairs at Renmin University of China, said, "China's successful experience in the process of modernizing itself has greatly inspired and encouraged the Arab countries to explore their own developing pathways that adapt to their respective national conditions."

In regard to promoting stability in the region, Xi said China will "set up a China-Arab research center on reform and development". To boost structural adjustments, Xi said China may sign more currency swap and mutual investment agreements, expand renminbi settlement services and accelerate investment facilitation.