(Yicai) Feb. 20 -- Chinese companies are revving up their expansion into Middle Eastern and African markets, particularly Saudi Arabia, in response to escalating geopolitical uncertainties and the need to diversify away from traditional Western markets.

Over 1,500 Chinese firms are expected to take part in exhibition in Saudi Arabia this year, after more than 800 did so last year, said Xiao Feng, vice president of Dubai-based conference and exhibition organiser MIE Groups. Companies from Turkey, Germany, Italy, and India are also very interested in the Saudi market, he added.

Saudi Arabia's allure is intensifying. The Big 5 Construct Saudi, a construction-themed event held in Riyadh from Feb. 15 to 18, was so popular that the organizers had to erect temporary tented halls to meet demand, Xiao said.

The surge in construction-related exhibitions in Saudi Arabia reflects robust market demand. Industry insiders noted that the nation previously held one such event annually, but that number has now increased to five or six a year and they are growing in size. Due to booth shortages, fees are increasing by double digits.

Besides the thriving Saudi market, countries such as the United Arab Emirates and Kenya are also attracting Chinese companies, which helped MIE restore its business to pre-pandemic levels last year.

MIE, which helps Chinese firms to enter new markets, held a launch event in Shanghai this week for the Middle East & Africa EV & Mobility Show, a global networking roadshow for policymakers and electric vehicle industry pioneers.

MIE has a full schedule of events planned for this year, with the Middle East & Africa EV & Mobility Show due next to visit Saudi Arabia, the United Arab Emirates, Morocco, and Kenya.

Brand-Upgrading and Localization

At its Shanghai launch ceremony, Radouane Chaouki, Morocco's deputy head of mission in China, highlighted the foundation and prospects of the North African country's auto industry. Morocco has become one of the continent's largest car production hubs, with a complete industrial chain and favorable geographical location, according to Chaouki.

The Moroccan government is actively promoting the EV industry’s development and has brought out several policies to encourage partnerships with Chinese businesses in areas such as tech research, development, and manufacturing.

Kenya offers stable economic prospects, a high-quality labor force, and abundant mineral resources, making it a key hub in Africa, Kipkorir Bett, the country’s  ambassador to China, said at the same event. The government is prioritizing the growth of the new energy industry, particularly EVs and low-altitude flying vehicles such as drones.

The surge of Chinese enterprises into the Middle East not only boosts export volumes but also accelerates brand upgrades and localization efforts. Xu Shigang, secretary-general of the Jiangsu Automobile Dealers Association, said the Chinese province will support dozens of businesses in participating in the Middle East & Africa EV & Mobility Show across both regions.

The association aims to promote Jiangsu-made marques and plans to establish certification and after-sales service standards in cooperation with local partners. This initiative is expected to strengthen the brand influence and market share of Chinese carmakers in the Middle East.

The unique geographical environment and demand in Middle Eastern and African markets present distinct opportunities for the development of the low-altitude economy, said Yi Ying, chairman of the Shaanxi UAV Technology Service Association. Chinese makers of unmanned aerial vehicles are actively expanding overseas through exhibitions and other means to increase brand awareness and competitiveness, he added.

Last year, China's exports to Saudi Arabia and the UAE grew by 18 and 19 percent, respectively, showing strong growth momentum, according to customs data.

Editor: Emmi Laine