PRC Economic Penetration of the GCC

This brochure tells the story.

June 8-10 Dubai.  1,300 firms.  6 product categories.  One stop shopping.

And note this is part of a well organized trade promotion effort - not just in the GCC.  There'll be a fair in Miami in 2011.

To update Chairman Mao:  While power may come from the barrel of a gun, a country's economy is the basis for all power.

恭喜发财 -- 恭喜發財

 

恭喜发财

恭喜發財

I've hung the Arqala Family "Fu" on our front door and re arranged various other auspicious signs, so let me wish all of you a Prosperous New Year.

Kung Hei Fat Choi!

Or, if you prefer,  Gong Xi Fa Cai!

While 紅包 are most appropriately given to children and unmarried adults, I believe I qualify on the former as Umm Arqala has on more than one occasion told me to grow up.

GCC China Economic Forum - Inaugural Meeting Bahrain 23-24 March

 

The GCC-China Economic Forum will hold its inaugural meeting this March 23-24 in Bahrain under the patronage of Bahrain's Prime Minister, HH Khalifa Bin Salman Al Khalifa.  Among the topics for discussion is the finalization of Free Trade Pact talks.

Trade and economic relations between the PRC and the GCC states are increasing.   Something that is in the political and economic interests of both sides.  Something that gives both sides greater options vis-a-vis certain other powers in the Western end of the Eur-Asian continent and in the Americas.  An earlier observation here. 

CNPC Replaces Total in Pars 11

The Peoples Republic of China continues its economic penetration of the region.

Back in Washington, minds are focused on what are imagined to be more urgent foreign policy matters.

In the final analysis, economics is the basis of all sustainable political power. 

Countries and elites that ignore this very simple, very basic rule of life find their own power gradually slipping away and the standard of living of their people eroded.

Qatar Sovereign Bond Successful - US$7 billion + Long Tenor

Qatar's sovereign bond offering was a roaring success:

1. US$3.5 billion Maturity 2015 Margin 185bps
2. US$2.5 billion Maturity 2020 Margin 195bps
3. US$1.0 billion Maturity 2040 Margin 215bps

Note the 30 year maturity on the last tranche.

There have been some press reports which have noted that this bond is now the largest US$ bond issuance by an emerging market investor as it surpassed the US$6.1 billion in bonds issued by the PRC's Ministry of Railways back in November 2007.

But, let's look at the details of that issue to see that more than size matters with Qatar.

The PRC issue consisted of and were priced as follows:

1. US$1.2 billion 7 year bonds at 5.38% (fixed rate)
2. US$3.5 billion 10 year bonds at 5.6% (fixed rate)
3. US$1.4 billion 15 year bonds at 5.75% (also fixed)

Much longer tenors.