The Belt and Road Initiative in the Middle East and North Africa (MENA): A Case Study of Egypt and Saudi Arabia

Abdalla Fahmi

Bachelor's thesis

Abstract:

The Belt and Road Initiative is a grand strategy implemented by China in 2013 to enhance connectivity and cooperation by improving infrastructure, trade, and investments. It consists of two main components, the land-based "Silk Road Economic Belt" and the sea-based "Maritime Silk Road." Egypt and Saudi Arabia are two prominent nations in the MENA region strategically located and becoming an essential tool for China. The BRI in the MENA region is an important topic that requires further research and analysis to understand its potential political and economic impacts on these two countries. This thesis demonstrates China's political economy and how the BRI is becoming a foreign policy tool for China to achieve its economic and geopolitical objectives. The two case studies took their relations with the BRI, where a comparative study was implemented to compare the findings based on literature, news articles, and diplomatic sources. The results showed that China's growing influence and presence in the region increased infrastructure developments and projects through loans and investments. As both strive to improve social welfare, Egypt and Saudi Arabia are complementary regarding natural resources, industrialization, and creating significant potential for economic partnerships. The Suez Canal and Saudi Arabia's energy are the two main contributors to China's expanded access. Potential concerns over debt risks for Egypt will depend on the success of the projects in generating sufficient economic returns to repay the debt and the overall state of the economy.

Abstract:

The Belt and Road Initiative is a grand strategy implemented by China in 2013 to enhance connectivity and cooperation by improving infrastructure, trade, and investments. It consists of two main components, the land-based "Silk Road Economic Belt" and the sea-based "Maritime Silk Road." Egypt and Saudi Arabia are two prominent nations in the MENA region strategically located and becoming an essential tool for China. The BRI in the MENA region is an important topic that requires further research and analysis to understand its potential political and economic impacts on these two countries. This thesis demonstrates China's political economy and how the BRI is becoming a foreign policy tool for China to achieve its economic and geopolitical objectives. The two case studies took their relations with the BRI, where a comparative study was implemented to compare the findings based on literature, news articles, and diplomatic sources. The results showed that China's growing influence and presence in the region increased infrastructure developments and projects through loans and investments. As both strive to improve social welfare, Egypt and Saudi Arabia are complementary regarding natural resources, industrialization, and creating significant potential for economic partnerships. The Suez Canal and Saudi Arabia's energy are the two main contributors to China's expanded access. Potential concerns over debt risks for Egypt will depend on the success of the projects in generating sufficient economic returns to repay the debt and the overall state of the economy.

Keywords

Saudi Arabia, Foreign Policy, International Political Economy, Belt and Road Initiative, Egypt

Keywords

Belt and Road Initiative, International Political Economy, Foreign Policy, Egypt, Saudi Arabia

Language used: English

Date on which the thesis was submitted / produced: 28. 4. 2023

Thesis defence

• Date of defence: 30. 5. 2023
• Supervisor: Jeremy Alan Garlick
• Reader: Pavel Přikryl

Vysoká škola ekonomická v Praze

Bachelor programme:
International and Diplomatic Studies