Is Iraq among them?.. Kuwait’s most prominent challenges towards the “Belt and Road” project

[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]

---

Economy News - follow up
[rtl]With the escalation of logistical competition in the Gulf region, the Mubarak Al-Kabeer Port project in Kuwait stands out as a strategic axis for strengthening trade and economic relations with China, as the project is a sign of Kuwait’s efforts to diversify its economy and reduce dependence on oil, and it represents part of the ambitious Chinese Belt and Road Initiative, but its implementation has remained faltering. After completing its first stage.[/rtl]
[rtl]The port faces many challenges, including political tensions, border disputes with Iraq, and American pressures that may hinder progress in its construction. These factors complicate the possibility of Kuwait achieving its strategic goals and raise questions about the future of the port as a major regional commercial center, according to two economists.[/rtl]

[rtl]New convergence[/rtl]

[size]
[rtl]Economist Alan Safa confirms that Mubarak Port is an old project dating back to 2007, and has gone through several stages related to the development of the economic relationship between Kuwait and China, especially after the signing of a contract to supply Kuwaiti oil to China several years ago in exchange for Chinese loans.[/rtl]
[rtl]But this contract was terminated due to American pressure on Kuwait, and thus the relations did not allow China to develop its relations with Kuwait, according to Safa, pointing out that China is moving at the same time to extend its economic influence in the region, which it culminated in bringing Iran, Saudi Arabia, the Emirates and Egypt into a group. “BRICS”.[/rtl]
[rtl]In this context, Safa points out that Iraq, which had wanted to deepen economic communication with China for several years, was able to sign several contracts allowing Chinese companies to invest within it, in light of a general Chinese policy, based on expanding its economic influence geographically through the New Silk Road project. .[/rtl]
 
[rtl]Safa adds that China is offering several countries in the world to develop ports, railways and roads in light of its new strategy, and according to the principle that China invests in these countries as a result of political and economic rapprochement and common interests with them.[/rtl]
[rtl]Therefore, Safa believes that the completion of the Mubarak Al-Kabeer Port project means that Kuwait will begin a new phase of rapprochement with China, which adds an additional dimension to China’s growing economic influence in the region.[/rtl]
[/size]

[rtl]Make a deal[/rtl]

[size]
[rtl]This means that the strategic goal is not linked to the Mubarak Port project itself, but rather to concluding a deal under which Chinese companies will build the remainder of the project in exchange for China’s use of the port in the transit, import and export process, according to Safa, who expects to sign large contracts in this regard soon.[/rtl]
[rtl]This is in an organized direction to deepen the new and advanced economic relations between Kuwait and China, according to Safa, indicating that Kuwait will reap great economic benefits from this, whether directly from the revenues from Mubarak Port, or indirectly from developing its economic relations with China.[/rtl]
[rtl]This development is linked to the good economic relations between Iran, Iraq, Turkey, Saudi Arabia, and China, as the participation of all these countries in building a kind of strong trade exchange and building railways and ports means that Mubarak Port will have a good economic result, based on this rapprochement, according to Safa’s estimation, He pointed out that the Kuwaiti port project was subject to a slowdown in its implementation in light of Iraq’s objection, based on an assessment that the port poses a threat to its ports strategy.[/rtl]
[/size]

[rtl]Belt and Road Integration Circle[/rtl]

[size]
[rtl]But Safa believes that Chinese intervention in the implementation of the project could move it from the circle of competition to the circle of integration. Just as China did in the relations between Iran and Saudi Arabia, it can do the same between Kuwait and Iraq, making Mubarak Port a representative of mutual benefit between the two countries, on the basis of Chinese sponsorship, so that Beijing would be the strong source for both countries.[/rtl]
[rtl]However, the potential American “veto” challenge remains an obstacle to the project, according to Safa, who does not rule out repeating Washington’s pressure on Kuwait not to complete the port, so that relations between Kuwait and China do not reach an advanced stage that might lead to political rapprochement.[/rtl]
[/size]

[rtl]Big challenges[/rtl]

[size]
[rtl]In this context, the economic expert, Amer Al-Shobaki, points out that the challenges facing the Mubarak Al-Kabeer Port project are still great, including procedural challenges regarding the status of this port, especially after Iraq refused to allow ships to pass through Khor Abdullah, which is the main entrance to the port, which makes the port fail to function properly. complete.[/rtl]
[rtl]Al-Shoubaki adds that the port, which was supposed to be one of the most important and largest ports in the Arabian Gulf with 60 berths, faces another challenge related to China’s position on the project, as it was planned that the port would be a focal point in the Chinese Belt and Road Initiative, and a station on the proposed development road across Iraq is between Qatar, the Emirates, Turkey and Europe.[/rtl]
[rtl]With Chinese investments amounting to approximately 17 billion dollars in building railways inside Iraq, China’s interest seems focused on Al-Faw Port, according to Al-Shoubaki, who stresses the need for clear indications from China that Mubarak Port will return to its plan, to be part of the development path.[/rtl]
[/size]

[rtl]Integrating the project into the Belt and Road Project[/rtl]

[size]
[rtl]The success of the completion of the Mubarak Port project requires China to do a lot to bridge the rift between Kuwait and Iraq in the border dispute between them, which threatens to hinder the operation of the project so that the port is effectively capable of receiving and passing ships, according to Al-Shoubaki, pointing to the necessity of integrating Mubarak Port within the Belt and Road project plan. Development to serve the public interest in Kuwait.[/rtl]
[rtl]Here, Al-Shoubaki points out that Kuwait is one of the Gulf countries that has lagged behind in the process of developing the non-oil economy, as it still relies heavily on oil revenues as a major resource for its economy, while financing the Mubarak Port project requires a huge amount, amounting to $3 billion, which may not help. Current oil prices are sufficient to provide them, especially since the Gulf country's budget has been suffering from a deficit for years.[/rtl]
[rtl]Therefore, the Kuwaiti port project was halted after completing its first phase about ten years ago, which cost about half a billion dollars, according to Al-Shoubaki, indicating that the port needs three more phases to complete work on it, which means that the challenges are still great for cooperation between Kuwait and China. .[/rtl]
[rtl]Al-Shoubaki points out another challenge that Mubarak Port will face, which is the presence of active ports in the Arabian Gulf, whether in Dammam, Abu Dhabi, or Dubai.[/rtl][/size]

---

Views 18
Added 06/27/2024 - 2:21 PM
[You must be registered and logged in to see this link.]