Marking its 70th anniversary of relations with Egypt, Pakistan takes CPEC to Cairo

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The Egyptian-Pakistani Forum kicked off its activities on Monday in Cairo, marking the 70th anniversary of the beginning of relations between the two countries. (Arab News photo)
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The Egyptian Minister of Planning Hala Al-Saeed speaking in the conference. ( Arab News photo)
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Federal Minister for Planning and Development Khusro Bakhtiar speaking during the conference. ( Arab News photo)
Updated 25 September 2018

Marking its 70th anniversary of relations with Egypt, Pakistan takes CPEC to Cairo

  • South Asian Strategic Stability Institute (SASSI) in Islamabad has organized two-day conference in Egypt
  • The conference explores economic opportunities under the CPEC

CAIRO: The Egyptian-Pakistani Forum has kicked off its activities on Monday here, marking the 70th anniversary of the beginning of relations between the two countries.

The conference is organized by the South Asian Strategic Stability Institute (SASSI) in Islamabad for two days (Sept. 24-25).

Dr. Maria Sultan, the SASSI’s director general, inaugurated the conference.

The Federal Minister for Planning and Development Khusro Bakhtiar, Pakistan’s Ambassador to Egypt Mushtaq Ali Shah and other representatives from Egyptian and Pakistani ministries, including the Egyptian Minister of Planning Hala Al-Saeed, attended the conference inauguration.

“Pakistan has been and will continue to be supportive of investments in Egypt, especially in the Suez Canal region, and we are happy to partner with a pivotal country in the region and the world,” said Minister of Planning and Development Makhdoom Bakhtiar in his opening remarks.

He added: “Egypt is a promising country and the legislative environment for investments is ready to attract more projects. Pakistan has always provided a helping hand to its brothers from the Islamic world to make a continuous partnership in several fields.”

In spite of the economic investment orientation of the Forum, the issue of the war on terror was present.

Bakhtiar stressed the priority Egypt puts in the fight against terror and in bringing national security. He added that Pakistan had also had problems with terrorism for many years, and praised the Pakistani minister in Egypt for continued understanding and cooperation in the matter.

The Egyptian Minister of Planning Hala Al-Saeed expressed her happiness about this cooperation between Egypt and Pakistan. She stressed that the forum represents an important platform for dialogue and cooperation between the two countries, and that they are keen to promote and develop bilateral relations in various fields, and to elevate these relations to broad horizons.

The Egyptian minister discussed investment opportunities in Egypt, especially in the Suez Canal area, and concluded her participation in the opening session by saying: “Long live Egypt. Long live Pakistan.”

The establishment of official diplomatic relations between the two countries began in 1948. Egypt was the first country in the Middle East to open an embassy in Pakistan after its independence.

However, despite the existence of a contractual and institutional framework, the results and outcome of the cooperation is limited as the volume of trade exchange between the two countries was $231 million in 2017. This shows co-investment between two countries does not reflect the standard of relationship and resources the countries have, whether it be human resources or otherwise.

This conference is exploring economic opportunities mainly due to the China-Pakistan Economic Corridor, which is part of China’s Belt and Road Initiative The project, unveiled by President Xi Jinping in 2013, aims to increase a number of land and sea links within Southeast Asia, Central Asia, the Middle East, Europe and Africa.

“Trade through the Indian Ocean is expected to rise with the emergence of China as a global economic superpower,” said a SASSI statement.

Head of the Commercial Representation Authority Ahmed Antar said that the conference comes at an important time to enhance the partnership between the two, pointing out that the Suez Canal and the port of Gwadar in Pakistan are two of the most important ports on the Silk Road, and represent a huge opportunity to enhance cooperation between Egypt and Pakistan in the fields of trade, especially with the amount of traffic expected to hit the two ports in the coming years.

He added that Egypt and Pakistan enjoy huge advantages that enable the two countries to achieve great growth and economic integration. Egypt occupies a distinguished geographic location between the continents of Asia and Africa, and Pakistan is located in the heart of Asia. The Egyptian Government seeks to enhance cooperation with Pakistan, especially in the fields of telecommunications, insurance, information technology and international trade.

The conference program includes sessions in the fields of navigation, logistics and transportation, natural resources, banking and finance, trade and supply chains, and women’s role in trade, as well as sessions for small-to-medium enterprises and media.

The conference is to be held by a group of ministers and senior representatives of the Pakistan Government, including members of the Ministries of Planning and Development, Navigation Affairs, Petroleum and Mineral Resources, Finance, Science and Technology, Commerce, Information, and Industry and Production. There will also be a large number of speakers and representatives of various government agencies, the Central Bank and Pakistani banks.

The Egyptian side also includes representatives from the Ministries of Commerce and Industry, Investment and International Cooperation, Petroleum, Communications and Information Technology, the Central Bank of Egypt, the Financial Supervision Authority and the Suez Canal Economic Zone.

For Gulf economies, Chinese outbound tourism holds passport to riches

Chinese tourists are widening their horizons with the Middle East tipped to be a leading destination by 2020. (Shutterstock)
Updated 2 min 11 sec ago

For Gulf economies, Chinese outbound tourism holds passport to riches

  • GCC countries currently attract a mere one percent of China's annual outbound traffic
  • Gulf brands advised to engage with the world's fastest growing consumer group: Chinese tourists

DUBAI: “One learns more from traveling 10,000 miles than from reading 10,000 scrolls.” For China’s fast-growing middle class, there has never been a better time to be guided by the ancient Chinese proverb as 150 million people travel every year from the Asian country to destinations around the world.
Given the vast numbers involved and the fact that only eight out of 100 Chinese hold a passport, the mind boggles at the possibilities that could be in store for the global consumer market.
If the Gulf can capture even a fraction of the total Chinese outbound travel market, the economic bonanza for the region will be huge, according to consulting rms and experts.
Experts at the Arab Luxury World conference in Dubai last week advised regional brands on strategies to engage with the luxury market’s largest and fastest- growing consumer group.
“Because the Gulf had so much organic business, it wasn’t the rst necessity to hunt for more oppor- tunities,” said Jonathan Siboni, founder and CEO of Luxurynsight. “But now the market is reposi- tioning itself. Chinese consumers are a new thing for the region.”
A report by management consul- tants McKinsey in November 2018 said: “More than 70 percent of Chinese tourists travel with family and friends. As a result, these groups are the world’s highest spenders per single trip. We expect annual growth of 6.1 percent for the next couple of years.”
Siboni said: “There are 3.5 million millionaires in China. No matter what the preferred focus of niche brands, be it adventure, nature or shopping, Gulf companies will be well positioned if they prepare and target well.” He uses the example of France, a country of 67 million people that receives 90 million tourists every year.
Almost 2 million of the visitors are Chinese. More importantly, they account for 25 percent of France’s duty-free sales.
“If you have a very smart strategy, you can de nitely generate results,” Siboni told Arab News on the sidelines of the Arab Luxury World conference.
“Look at the results from France’s 2 million Chinese tourists. I would be tempted to say the same for Dubai. If you really target well and manage to learn how to talk to them and provide something unique, then the contribution to the image and the economy can be tremendous.”
The number of Chinese tourists traveling to Gulf Cooperation Council (GCC) countries is forecast to jump 81 percent between 2018 and 2022 — from 1.6 million to 2.9 million, according to a study by Colliers International in partnership with the Arabian Travel Market. The data show that GCC countries are visited by a mere 1 percent of China’s tourists, but that share is expected to grow.
Local communication agencies can play a big role in the GCC tourism and consumer market’s transformation, Siboni said. Luxurynsight is not operating in Saudi Arabia, but he expects it to begin opera- tions at some point as the Kingdom takes steps to reinvent itself as a major tourist destination. For international travel agencies, hotels, retailers and other allied industries, the good news is not only that Chinese outbound tourism is exploding, but also that Chinese tourists are widening their horizons. As Maissa Zard, Luxurynsight’s head of marketing and sales, points out, Chinese tourists have become a lot savvier when it comes to choosing digital products and brands. “Before they shop, they know exactly where to shop and what to buy,” she told Arab News. “There is a rise in cross-border e-commerce, so if brands in the region become loyal to tourists from the start, they would be building not only brand loyalty but also local store loyalty.”
Brands should stop viewing Chinese tourists as “something extra,” she said, adding that “they need to develop a loyal relationship with the Chinese consumer. According to the latest data, Chinese consumers represent 33 percent of the global luxury industry - a figure that will rise to 50 percent in a couple of years. As much as 75 percent of their purchases are made outside China, with the Middle East one of their top shopping destinations for 2020. Zard believes the Middle East has an important edge over Europe. “The region is very strong in terms of service and quality because it has a demanding local clientele,” she said. “They need to leverage that advantage. Brands must understand that Chinese tourists could well become their best clients. The local clientele isn’t sustainable because the world is becoming more globalized.”
A big question for regional brands is how to cater to Chinese consumers and approach them in the right manner. “It’s about vision and strategy,” Siboni said. “Providing them with a unique experience will be key. In Paris, it’s about luxury and culture. Dubai, for instance, has to de ne its best strategy.”
According to a report issued by Dubai’s Department of Economic Development, the emirate currently hosts almost 19,000 Chinese investors, who hold close to 6,000 active business licenses. “It is true that you have to deal with partners you are not used to, but it’s a market that is extremely structured,” Siboni said. “You have a few players who own the game, so once you know how it works, then you’re in it.”
The McKinsey report detailed eight distinct segments of Chinese tourists, ranging from value-seeking sightseers and sophisticates to backpackers and shoppers. Whatever the segment, engaging with Chinese consumers will involve the use of popular technologies and communication tools, such as WeChat and Little Red Book for payment processes.
“It means you have to integrate a payment system that is digitalized,” Siboni said. “Alipay and WeChat Pay are tools that are non-negotiable. You need to integrate them with your business processes no matter what because, if you don’t, then even if customers come to you, they won’t be able to pay.”
Siboni urges a 360-degree vision to ensure that content o ered by brands in the Gulf region resonates with Chinese tourists. However, more work needs to be done regionally to keep pace with inter- national consumer trends.
“Elsewhere in the region, attracting Chinese consumers is still not the top priority,” Siboni said. “But Dubai has already under- stood that it has to diversify, which is why you see increasing numbers of Chinese tourists.”
If people do learn more from traveling than from just reading, as the proverb suggests, then Chinese tourists have yet another incentive to make the Gulf region one of their favored destinations.