China's President Xi Jinping pledged more than $23 billion in lines of credit, loans and humanitarian assistance to Arab countries Tuesday in a major push for influence in the region from which China sources much of its energy needs.
The package is part of what Xi called an "oil and gas plus" model to revive economic growth in the region.
China would offer 600 million yuan ($90 million) in humanitarian assistance to Jordan, Lebanon, Syria and Yemen, he added.
Another $151 million was earmarked for aid projects, with the remaining $23 billion designated for financial and economic cooperation, Xi said. No details were given about how or when the money would be dispersed.
"China and Arab states must synergize our development strategies in pursuit of our respective dream of rejuvenation," Xi said.
China has expanded its influence among Arab states both for economic purposes and to counter the influence of Washington and Europe.
Saudi Arabia was China's second-largest source of crude oil last year and Iraq was its third-biggest supplier at the start of 2018. The Middle East is also a key node in China's "Belt and Road" initiative that envisages linking Beijing to other parts of Asia, Europe and Africa via a network of ports, railways, economic development zones and power plants.
China "supports the construction of a future logistics network connecting Central Asia with East Africa and the Indian Ocean with the Mediterranean," Xi told the conference.
Politically, China has sought a role as an intermediary between Israel and the Palestinians and provided diplomatic cover for Syrian President Bashar Assad in the country's seven-year civil war.
Development was key to resolving many security problems in the Middle East, Xi told a gathering with representatives of 21 Arab nations in the Chinese capital.
"We should treat each other frankly, not fear differences, not avoid problems, and have ample discussion on each aspect of foreign policy and development strategy," he said.
A consortium of banks from China and Arab nations, with a dedicated fund of $3 billion, will also be set up, he said.
It was unclear what the relationship between the bank consortium, financial aid and the overall loan package would be.
The loans will fund a plan of "economic reconstruction" and "industrial revival" that would include cooperation on oil and gas, nuclear and clean energy, Xi said.
He urged "relevant sides" to respect the international consensus in the Israel-Palestinian conflict, and called for it to be handled in a just manner, so as to avoid regional disruption. On Tuesday, he said China would offer aid worth 100 million yuan ($15 million) to the Palestinian Authority to support economic development.
China, which traditionally played little role in the Middle East conflicts or diplomacy, despite its reliance on the region for energy supplies, has been trying to get more involved in resolving long-standing disputes.
China says it sticks to a policy of "noninterference" when offering financial aid and deals to developing countries, which, coupled with development, can help resolve political, religious and cultural tension.
