PORTS in the United Arab Emirates and Saudi Arabia are to play a key role in China's Belt and Road initiative.
Saudi's King Abdulaziz port in Dammam, Jeddah Islamic port and the King Abdullah port along with the UAE's Jebel Ali port in Dubai and port Khalifa in Abu Dhabi serve as transshipment hubs, which is where the two countries will play the greatest role in Belt and Road, and China's latest actions confirm this, reported Dubai's AMEinfo.
It should come as no surprise then why China is pledging US$20 billion in loans and $106 million in financial aid to the Middle East. Saudi and the UAE are the main economic hubs in the Middle East and it is therefore crucial for them to be improved to be on par with China's standards.
The good news is that these ports will be able to support the forecasted demand coming from Belt and Road.
According to a report by global intelligence site Stratfor, the five biggest ports in Saudi and the UAE 'are essentially stopping points along longer trade routes, [and] offer even more economic opportunity than endpoint ports, where products are either offloaded or exported, because they allow for the development of businesses that provide insurance, offer import and export services, charge berthing fees'.
Upgrading ports in Saudi and the UAE will serve more than just meeting Chinese requirements - it will help diversify their economies, particularly if the practice of awarding most shipping jobs to foreign employees is halted, as the 'shipping industry is a stable, year-round business'.
As ports become more and more automated across the world, Saudi and the UAE will have to keep up, otherwise, they will be eclipsed by the more cost-effective foreign ports. An inclination towards a technological upgrade will only help cement their ports as major players in the East Asian maritime route.
According to the Observatory of Economic Complexity (OEC), Saudi Arabia exported $163 billion and imported $131 billion in 2016, resulting in a positive trade balance of $31.8 billion. The Saudi Ports Authority said their nine ports collectively handle 532 million tonnes of cargo and 13 million containers.
The UAE exported $174 billion and imported $196 billion during 2016.
Alphaliner data shows that the Saudi ports of Dammam and Jeddah and the UAE's Khor Fakkann were among the top ten largest losers of container volumes last year. Dammam saw container volumes decrease 11 per cent to 1.6 million TEU and Khor Fakkan's throughput was down six per cent to 3.8 million TEU.
Saudi's King Abdulaziz port in Dammam, Jeddah Islamic port and the King Abdullah port along with the UAE's Jebel Ali port in Dubai and port Khalifa in Abu Dhabi serve as transshipment hubs, which is where the two countries will play the greatest role in Belt and Road, and China's latest actions confirm this, reported Dubai's AMEinfo.
It should come as no surprise then why China is pledging US$20 billion in loans and $106 million in financial aid to the Middle East. Saudi and the UAE are the main economic hubs in the Middle East and it is therefore crucial for them to be improved to be on par with China's standards.
The good news is that these ports will be able to support the forecasted demand coming from Belt and Road.
According to a report by global intelligence site Stratfor, the five biggest ports in Saudi and the UAE 'are essentially stopping points along longer trade routes, [and] offer even more economic opportunity than endpoint ports, where products are either offloaded or exported, because they allow for the development of businesses that provide insurance, offer import and export services, charge berthing fees'.
Upgrading ports in Saudi and the UAE will serve more than just meeting Chinese requirements - it will help diversify their economies, particularly if the practice of awarding most shipping jobs to foreign employees is halted, as the 'shipping industry is a stable, year-round business'.
As ports become more and more automated across the world, Saudi and the UAE will have to keep up, otherwise, they will be eclipsed by the more cost-effective foreign ports. An inclination towards a technological upgrade will only help cement their ports as major players in the East Asian maritime route.
According to the Observatory of Economic Complexity (OEC), Saudi Arabia exported $163 billion and imported $131 billion in 2016, resulting in a positive trade balance of $31.8 billion. The Saudi Ports Authority said their nine ports collectively handle 532 million tonnes of cargo and 13 million containers.
The UAE exported $174 billion and imported $196 billion during 2016.
Alphaliner data shows that the Saudi ports of Dammam and Jeddah and the UAE's Khor Fakkann were among the top ten largest losers of container volumes last year. Dammam saw container volumes decrease 11 per cent to 1.6 million TEU and Khor Fakkan's throughput was down six per cent to 3.8 million TEU.