Chinese investment in west Asian countries surged 65.2% last year and was mainly focused on the energy sector, according to a report on the development of the Middle East released by a leading Chinese institute Thursday, China Daily reported.

The Institute of West-Asian and African Studies at the Chinese Academy of Social Sciences issued the report, which said the sharply increasing investment was due to three key factors: China’s strong demand for energy resources; growing income in most west Asian countries and the increasing need for infrastructure, according to China Daily.

Chinese investment in west Asian countries and the Middle East, which are the main energy providers, will continue to rise along China’s demand for energy, said the report.

The growing economies in the West Asian countries have a huge demand for industrial development and household consumption products and China is coming in to fill it. Chinese contractors are also entering these countries where there is a massive market for upgrading infrastructure, the report added.

In addition, the report said that Sino-Egyptian cooperation, especially in the labor-intensive manufacturing sector, would help increase job growth in Egypt.

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