Investing in Education and Energy in the Land of the Red Dragon

In a landmark visit, OPEC Fund Director-General Abdulhamid Alkhalifa became only the second head in the nearly 50-year history of the development finance institution to pay an official visit to China. As he arrived in the capital Beijing in mid-October he said: “Our goal is to deepen and strengthen our cooperation. China’s demand for investment is enormous and there is space for the kind of well-targeted and finely tailored engagement that the OPEC Fund can offer.” 

In Beijing, the OPEC Fund head met the Vice Minister of Finance, Liao Min, and the CEO of the Multilateral Cooperation Center for Development Finance (MCDF), Zhongjing Wang. 

The OPEC Fund delegation also held technical meetings with officials from the Asian Infrastructure Investment Bank (AIIB). Cooperation between the OPEC Fund and AIIB has grown significantly since the signing of a Memorandum of Understanding in 2022. 

A special highlight of the mission was the inauguration of the Shaanxi Vocational Education School in Xi’an, the capital of the Shaanxi Province in central China. The OPEC Fund co-financed the project with a US$35 million loan. Addressing students and school staff the Director-General said: “We welcome the high priority that China attributes to education.” 

The inauguration provided an opportunity to tour the school campus where education will focus on addressing a shortage of skilled workers. Every year, 9,000 young job seekers and 6,000 skilled workers will receive market-oriented education and professional skill-set training. The school has 38 majors, among them broadcasting, advertising and pre-school teaching. 

To date, the OPEC Fund has provided 18 public sector loans to China totalling nearly US$500 million. One of the goals of the mission was to advance negotiations on a Framework Agreement that would allow the OPEC Fund also to offer its financial and technical support to the private sector. “We already have a substantial presence in the public sector and with this visit we will move closer to engaging also in the private sector,” Mr. Alkhalifa said. 

During a site visit to LONGi, the world’s largest producer of solar panels, the OPEC Fund delegation had the opportunity to see the impressive performance of vibrant Chinese companies. Expanding operations to the private sector would offer new opportunities for the OPEC Fund to provide support in sectors aligned with China’s development plans and priorities. 

The visit also offered the opportunity to catch a glimpse of the history of China, dating back almost 5,000 years. In Beijing, the OPEC Fund team visited Tiananmen Square and the Great Wall. In Xi’an, the delegation saw the famous Terracotta Army, depicting the armies of China’s first emperor. “Seeing these impressive monuments demonstrates what humankind is capable of and should serve as encouragement in our daily efforts,” the OPEC Fund Director-General said.