Gulf firms inch closer towards China with latest signing between KFH-Bahrain subsidiary and Chinese telco company - IFN

Gulf firms inch closer towards China with latest signing between KFH-Bahrain subsidiary and Chinese telco company

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GLOBAL: A subsidiary of Kuwait Finance House-Bahrain, telecommunications firm Menatelecom, has signed a strategic partnership with the largest telecommunications equipment maker in the world, Huawei which is headquartered in Guangdong, China. The deal which was brokered during the King of Bahrain, King Hamad’s visit to the republic earlier this week, aims to position Menatelecom as a leading telecoms services provider in Bahrain through strategic tie-ups. Abdulhakeem Alkhayyat, the managing director, CEO and chairman of KFH-Bahrain which is licensed as an Islamic retail bank by the Central Bank of Bahrain, commented: “This has created potential for new economic opportunities for Bahraini companies that will help them grow further and contribute to sustainable economic development.” Abdulhakeem had also signed a deal on behalf of developer Diyar Al Muharraq, in his capacity as chairman, for support towards China Middle East Investment and Trade Promotion Center’s commercial projects and supporting projects. GCC trade with China is said to be on an upward trend as volumes reached US$155 billion last year, up from US$92.5 billion in 2010. Exports stood at US$101 billion, while imports were recorded at US$54 billion. Bilateral trade between the two countries were said to reach US$40 billion in 2012. Oil and gas, property and infrastructure are the three main areas in which the Arab world and China are able to cooperate say industry players, whilst opportunities for Chinese investments in the Middle East are abundant in the areas of construction, telecommunications, transport and energy. Following in the footsteps of Kuwait Finance House, other Islamic banks such as Hong Leong Islamic Bank, whose parent Hong Leong Bank has a presence in China via a 20% shareholding in the Bank of Chengdu, is said to be exploring opportunities in the Chinese market following the amendments to Hong Kong's securitization law to accommodate Sukuk. Malaysia-based CIMB-Principal Asset Management currently affords Islamic funds focused on the China market via its CIMB Islamic Greater China Equity Fund, which was launched in 2009.