Ray Dalio's Hedge Strategy Offers Guidance for Chinese Executives Navigating Middle Eastern Markets

02 Dec, 2023

Ray Dalio's Hedge Strategy Offers Guidance for Chinese Executives Navigating Middle Eastern Markets

In the luxurious setting of a top-tier hotel in Riyadh, Saudi Arabia, during the 7th Future Investment Initiative (FII), Ray Dalio, founder of Bridgewater Associates, shared valuable insights with a group of Chinese start-up entrepreneurs and mainland financiers. Employing the Chinese idiom "Smart Rabbit has three burrows," Dalio emphasized the importance of preparedness and proactive backup plans in the dynamic world of finance.

The 7th FII, often dubbed "Davos in the Desert," gathered attendees who networked with key Saudi executives from Aramco, the world's largest oil company, to the Public Investment Fund (PIF), the kingdom's $700 billion sovereign wealth fund. Dalio's message resonated amidst a backdrop of global economic uncertainties and geopolitical tensions, drawing applause and laughter from the audience.

Dalio's words carried a sobering reminder for investors to diversify portfolios in light of the inherent instability in the global economy, accentuated by events like the Ukraine invasion and the Israel-Gaza war. Bill Huang Xiaoqing, CEO of Shanghai-based AI-powered robot developer Data Robotics, found Dalio's advice timely and relevant.

Following his exploration of Middle Eastern countries in October, including Saudi Arabia, Qatar, and the UAE, Huang sees the region as a potential "new home" for his business ventures alongside the United States and Europe. His eight-year-old start-up, specializing in cloud-based humanoid robots for cleaning, caregiving, and sanitation services, aims to capitalize on the promising Middle East market.

Huang views the Middle East as a deep and vast market, offering abundant business opportunities reminiscent of China's booming era in the 1990s. As China's economic growth rate stabilizes, the Middle East emerges as an attractive alternative, actively developing tech-driven startup ecosystems and reducing reliance on fossil fuels. A report by HSBC in August highlighted that trade between the Gulf Cooperation Council (GCC) and China surpassed trade with the US and the euro area combined, signaling the region's economic potential.