Editor's note: Ge Lin is a journalist and an economic commentator with CGTN. The article reflects the author's opinions and not necessarily the views of CGTN.

China and the Arab world are in a season of closer ties: Trade surges, diplomacy deepens, and projects multiply. But look closer, the structure of investment tells a thinner story – energy and infrastructure still take the lion's share. This is no accident, it reflects both the Arab world's oil-anchored wealth and China's past decade of capacity-export in steel, cement, and construction.

Arab states are rightly steering toward diversification – building resilience beyond oil, and planting seeds in advanced manufacturing, digital economy, life sciences, and renewables. Yet, ambition collides with a structural paradox. Global firms look for clusters before making commitments, but clusters rarely emerge without those very firms. It is the classic chicken-and-egg trap.

Breaking the impasse requires more than persuading firms one by one – it requires shaping the environment itself. When the ecosystem is aligned, capital, talent, and technology move like iron filings around a magnet. The question for Arab policymakers is not "How do we attract individual investors?" but "How do we design a field where entering the market becomes the path of least resistance for global firms (Chinese tech firms included, whose engagement remains cautious but pivotal)?"

Below are three pillars – policy magnetism, talent architecture, and global positioning – offered as prompts with usable moves.

I. Policy magnet: From regulator to host

Recent Chinese experience shows that in several emerging high-tech clusters and cities, success comes when the government functions as a service provider, actively guiding firms through licensing, utilities, financing, and compliance from the outset. These interventions are deliberate and structured. For Arab policymakers, the takeaway is clear: Offering firms comprehensive, hands-on support can make these locations highly attractive to high-tech enterprises.

1) Saved time as a subsidy

Cash subsidies are visible; time saved is just as powerful. Chinese city Hangzhou's rise as a tech hub does not hinge only on money; it hinges on speed. Getting a license there can take half a day, not "somewhere between 30 and 120 days." The same applies to opening a corporate bank account, securing a government-backed loan, or connecting to industrial utilities – every step has a clear, short timeline. When a founder knows that critical processes move in days, not months, the confidence to make a commitment rises sharply.

2) Governments as enterprise's personal concierge

In Hangzhou, this approach is a reality, not a theory. A single government counterpart doesn't just advise, but actively handles the company's needs from day one: Land allocation, industrial utilities, visas, customs, banking, compliance, and local hiring. The firm doesn't have to track the steps – everything is orchestrated on its behalf, proactively. Success is measured not by meetings or reports, but by outcomes: The factory powered up, the first hirings made, and the first invoice issued.

3) Make finance a bridge, not a moat

Governments can make finance a key part of public service for enterprises. This can mean connecting companies with willing investors, guiding banks on targeted loans, acting as a co-investor, or directly providing capital. In Chinese city Hefei, for example, authorities have backed strategic industries with investments tied to milestones, coordinated follow-ons, and planned exits. The point is clear: Financial support is one element of a broader public-service approach, helping companies navigate early-stage hurdles and grow.

4) Land and space as strategic levers

Chinese cities from Xi'an to Suzhou have treated industrial parks as deliberate coordination tools: Suppliers, labs, testing services, and university outposts are colocated to enhance efficiency and collaboration. These parks are not just physical spaces – they are instruments of policy, often offered at highly subsidized rates, or even rent-free for targeted, high-priority companies, to attract and anchor key players in one place.

5) Make procurement the first market

New industries cannot thrive without demand. Carefully structured government procurement can serve as that first market – acting as a reliable reference customer that helps firms prove their value and scale commercially. The volume does not need to be excessive at the start; even modest, well-targeted purchases can signal credibility and encourage broader adoption.

6) Regulate through sandboxes, not slogans

Where standards remain unsettled – AI safety, health data, fintech, or advanced robotics – setting strict rules too early can freeze innovation, while rules too late invite chaos. The balanced path is a bounded sandbox with transparent metrics and sunset clauses, a framework that guides real-world experimentation rather than relying on lofty statements or empty directives.

II. Talent as the first foundation

When a company considers establishing a presence in an Arab country, the first question is not about land or subsidies – it is about people. Without the right talent, even the most generous incentives are meaningless. A firm will only make a commitment if it knows there is a workforce capable of building, operating, and improving its business. If the answer to that question is vague, investment remains tentative.

1) Prioritize science and engineering disciplines

Chinese universities and vocational programs maintain an extraordinary focus on science and engineering, generating a talent pipeline that far exceeds global norms. This deep-rooted emphasis equips the workforce to contribute effectively from day one. In many Arab nations, educational systems are still expanding their capacity in these fields. This reflects a pragmatic understanding of where economic development will occur, and it signals to firms that the human foundation for innovation is already in place.

2) Incentives for talent

Chinese cities regard talent as their most strategic resource, striving to build frameworks that allow engineers and scientists to enjoy discounted high-quality housing, nearly free healthcare, and enhanced access to quality education for their children, among other benefits. Arab countries might consider how similar principles could be adapted to their own contexts. These measures will ensure that technology professionals are not only drawn to these cities but also stay there, fueling sustained industrial growth, and complement broader social policies.

3) Attract international talent

For Arab countries seeking to anchor foreign investment and technological know-how, international talent is a key foundation. Beyond visas, work permits, and tax incentives, a comprehensive approach considers every aspect of a professional's life: Streamlined housing arrangements, culturally attuned community services, multilingual guidance portals, and dedicated advisory hotlines. Each measure demonstrates that the country not only welcomes international talent but actively enables them to thrive.

4) Provide holistic family support

The decision to relocate for professional opportunities extends beyond the individual and involves the entire family. Arab countries aiming to attract and retain international talent could strengthen support systems to facilitate smooth family integration. From bilingual education programs to spousal employment opportunities, a comprehensive support framework not only attracts talent but also fosters loyalty, as professionals are more likely to stay in a country that actively supports the well-being of their loved ones.

III. Global positioning: Turn "geopolitical weather" into a platform

Many view the global environment as a headwind: Intensifying China–US competition, increasing fragmentation of international rules, and rising geopolitical uncertainties. However, friction creates openings. Real repositioning only happens when old routes clog. The present moment is exactly that: A structural opportunity for Arab states to become the place where systems meet.

1) Host neutral arenas of convergence.

Arab hubs can position themselves as stages where distinct technological and regulatory systems intersect without forcing compromise. The principle is to create trust in coexistence: Spaces where Chinese, Western, and local norms operate side by side, demonstrating that integration can be orchestrated without dominance.

2) Facilitate tech exchanges

Arab states can host tech exchanges and also go further by demonstrating the feasibility of cross-system collaboration through selective, high-profile pilot initiatives. These initiatives aim to show that technological dialogue can be implemented, and that Arab jurisdictions can translate conceptual cooperation into measurable outcomes.

3) Leverage sovereign funds as a magnetic force

Arab sovereign funds are world-class. More than mere financial instruments, they serve as platforms of authority and coordination. When used strategically, they create environments where international players operate on equal footing, with transparent rules, mapped exits, and aligned reporting. Capital becomes not just a resource to invest, but a convening mechanism and a tool for shaping ecosystems.

Closing: From exchange to embedding

At recent exchanges – such as the China–Arab States Expo now opening – we see clear signals of interest. Arab governments have extended invitations to Chinese tech firms, and Chinese capital has begun to show curiosity in understanding opportunities in the region. The question is not whether the appetite exists, but whether the conditions on the ground can translate interest into long-term presence.

From the vantage point of Chinese enterprises, the requirement is straightforward: A reliable environment where operations face minimal friction, a talent base that is either present locally or made willing to relocate, and a sense of strategic meaning that differentiates the Arab region from China itself or other global destinations.

If Arab policymakers align these foundations – policy service, talent depth, and global positioning – the chicken-and-egg dilemma fades. Firms will not wait for clusters to be complete before entering; they will build the clusters themselves once they sense the ground is ready.