China Energy Engineering Corporation has signed a deal that could ramp up its investments in the Middle East. -- As Nawied Jabarkhyl reports from Dubai. The firm's agreement with Saudi Arabia-based ACWA Power could also strengthen China's trade plans in the region.

The world's tallest tower was the setting for what could be a major deal for China in the Middle East. One of its largest power engineering firms, Energy China, has signed an MoU with Saudi Arabia's ACWA Power to explore global opportunities. It's another sign of ACWA's growing relationship with Chinese companies, which has already resulted in billions of dollars of investment in the Middle East, Africa and Asia.

PADDY PADMANATHAN, PRESIDENT&CEO ACWA POWER "It's about capability, capacity, competitiveness, reliability and that sort of partnership mentality, where they are able to work to our model – deliver reliable electricity at the lowest possible cost."

ACWA Power is already working with Shanghai Electric and Harbin Electric on projects in the United Arab Emirates. It's also benefitted from Chinese financing for some of its international work. The funding is often closely linked to deals with China's state-backed enterprises.

NAWIED JABARKHYL DUBAI Although they're some of the world's biggest oil producers, Gulf states are investing heavily in cleaner energy, as they look to diversify their economies. The plans – which could be worth hundreds of billions of dollars in the next few decades – have caught the attention of Chinese firms. For the likes of Energy China, it's also an opportunity for them to find new markets as Beijing presses ahead with its Belt and Road initiative.

Saudi Arabia alone plans on investing up to $50 billion in renewables by 2023. The UAE is planning to spend more than three times that amount on clean energy by 2050.

WANG JIANPING, CHAIRMAN ENERGY CHINA "The UAE is a very important location in China's Belt and Road plans. So, launching projects here in the Middle East is significant for the wider success of the Belt and Road. We'll use this agreement as a platform to achieve win-win solutions for both firms and to support international energy development."

Both companies are currently working together on an existing project in Vietnam. ACWA's chief executive expects the signing of this latest agreement to boost the value of their joint investments.

PADDY PADMANATHAN, PRESIDENT & CEO ACWA POWER "I can very easily see $2-3 billion every year in the early days, and building up. So, it's a powerful relationship."

As China is a major oil consumer, energy has long been a key aspect of its relationship with the Middle East. And as countries here look to develop their own power infrastructure, Chinese firms are hoping to play a bigger part in helping them meet their energy needs. Nawied Jabarkhyl, CGTN, Dubai.