Chengdu, China—International law firm Dentons held its annual conference for over 120 representatives from the largest Chinese contracting companies operating overseas at a 1-day event in Chengdu. The event, hosted jointly with the China International Contractors Assocation (CHINCA) and the Ministry of Commerce in Sichuan (MOFCOM), focused on successful project management in the Middle East, which presents enormous growth opportunities for Chinese contractors.

Partners from Dentons’ Asia Pacific, Middle East and Europe offices presented alongside an exceptionally high-quality panel of speakers including Mr. Yang Chunxuan, Deputy Director General, Sichuan Provincial MOFCOM and Mr. Chi Changhai, Vice President, CHINCA.

Key themes and discussion topics emerging from the event included:

• Market entry issues such as minimum local ownership requirements and how to find the right local partner
• Project staffing considerations and the importance of relationship building
• Use of legally binding contracts versus MOUs
• Update on Iranian sanctions
• Project bankability
• The huge market potential Chinese companies see in the Middle East not least ahead of the  2020 World EXPO in the UAE and the 2022 FIFA World Cup in Qatar.
• With the success of some recent projects in the Middle East, it is believed that Chinese standards and working methodologies will be gradually more acceptable in the Middle East.
• Shari’ah law principles for raising finance given that interest on loans is prohibited
• Varying efficiency levels of the local courts and value of having an arbitration clause in construction contracts
• Cultural nuances and customs to observe in the Middle East such as handling meetings during Ramadan
• Pitfalls to avoid and how to handle disputes amicably and by negotiation if they occur

The lawyers who represented Dentons were:

Keith Brandt - Partner (Hong Kong), Neil Cuthbert – Senior Partner and Global Board Member (Dubai), Ramin Hariri – Partner (Paris) and Andrew Jones – Partner (Doha).

In commenting on the successful conclusion to the 2014 annual event, lead partner Keith Brandt commented: "The number and quality of the Chinese companies in attendance who are all actively engaged in project development and financing in the Middle East validates that Chinese appetite for outbound investment in emerging markets remains truly unabated."

Neil Cuthbert added: "We were delighted to co-host such an engaging and insightful event with CHINCA and MOFCOM. As China expands its trade ties with the Middle East, opportunities for Chinese contractors continue to grow, as demonstrated by the various case studies presented by the CHINCA members.”

For a copy of the materials (available in Chinese and English) including the full agenda, or to arrange an interview on trends with one of our speakers, please contact Jonathan Chow.

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