Qatar is intensifying efforts to attract Chinese companies amid disruptions to Gulf trade routes caused by the ongoing conflict involving the United States, Israel, and Iran. This development aligns with a wider trend of Chinese businesses seeking to diversify their supply chains and establish operations closer to end markets.
Sheikh Khalifa bin Salman al-Thani, a member of Qatar’s ruling family and chief executive of logistics company WareOne, emphasized the global momentum behind supply chain diversification. He noted that while China maintains the world’s most advanced supply chain system, the current challenge lies in establishing effective operations within the Gulf Cooperation Council (GCC) countries—Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman.
Each GCC market presents unique regulatory environments, tax structures, and product registration rules, requiring companies to set up local entities, manage customs clearance, and build warehouses and delivery networks. This approach involves significant upfront investment before confirming market demand. WareOne’s business model aims to mitigate these hurdles by leveraging existing infrastructure and providing services like warehousing, customs clearance, order fulfillment, and last-mile delivery. The company selectively invests in facilities where gaps exist, enabling merchants to avoid the high costs of establishing standalone logistics networks in the region.
In recent years, Chinese platforms such as Shein, Temu, and AliExpress have expanded their footprint across the Middle East, alongside growth in sectors like electric vehicles and technology. WareOne has fostered relationships with regional e-commerce players including Noon and Temu and manages AliExpress returns in the Gulf through partnership with a local Chinese logistics firm, facilitating the return of goods to Hong Kong.
On September 10, Sheikh Khalifa signed a memorandum of understanding with Hong Kong-based logistics start-up Nexx during the Belt and Road Summit held in Hong Kong. The agreement aims to enhance warehousing and last-mile delivery services for Chinese merchants operating in the Gulf as Hong Kong seeks to strengthen its role within China’s Belt and Road Initiative by deepening connections with emerging markets.
Since its inception roughly two years ago, WareOne has grown to more than 25 employees and over 60 clients, moving hundreds of tonnes of goods and handling upwards of 100,000 e-commerce parcels. Qatar’s broader efforts to position itself as a regional logistics hub include substantial investments in its ports, aviation infrastructure, roads, and free zones.
While Dubai continues to be a dominant logistics and commercial hub in the region, Sheikh Khalifa suggested Qatar could serve as a complementary gateway or starting point for companies entering the GCC. Drawing a parallel with Hong Kong’s role as a gateway to mainland China, he highlighted Qatar’s advantages in terms of regulations, infrastructure, and connectivity, positioning it to play a pivotal role in connecting Chinese businesses with Gulf markets.
In June, Qatar Free Zones Authority chief executive Sheikh Mohammed bin Hamad bin Faisal al-Thani engaged with JD.com CEO Sandy Ran Xu in China to discuss further collaboration on logistics and supply chain development, underscoring Qatar’s commitment to expanding ties with Chinese enterprises.