Banks take the lead expanding China, Gulf States ties

Biggest banks in China and the United Arab Emirates key to building closer financial ties.

Industrial and Commercial Bank of China, China’s largest bank, now has offices in all six member states of the Gulf Cooperation Council or GCC. This council includes Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman.

ICBC established its Middle East headquarters at the Dubai International Financial Center in April 2008

The Saudi Arabian Monetary Agency granted ICBC its banking license in 2012. Also last year, ICBC applied for a UAE retail banking license to serve the 200,000 Chinese nationals living in the Gulf States.

The renminbi is increasingly accepted by Arab importers in cross border trade. Exports and imports in RMB by the UAE account for only 4% of the Gulf state's total foreign trade but chances are high that this figure will rise to double-digit in the coming years.

ICBC recently signed a memorandum of understanding with Qatar's sovereign wealth fund Qatar Holding to boost bilateral cooperation and investments between Qatar and China.

The UAE's biggest bank, Emirates NBD, has launched its own RMB-denominated accounts and deposits to support small and medium enterprises and to conduct trade settlements.

The Commercial Bank of Dubai recently launched Tianlong Chinese Banking, offering retail products and services customized for Chinese nationals in the Gulf.