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The newspaper's Deputy Editor-in-Chief Kang Bing and the federation's Secretary-General Abdul Rahim Hasan Naqi were on hand at the signing ceremony at the headquarters of China Daily and were joined by delegates from both sides.
"This is our first step of future cooperation," said Kang, who added that he is excited about the new partnership.
The two sides will exchange publication content and provide aid and guidance.
During the signing ceremony, Naqi expressed his faith in China Daily.
"(China Daily) will do a very good job," he said. "It is a very good time for us to work together, and also a good time (for China Daily) to open offices in the Gulf Cooperation Council (GCC) countries."
Liu Jialin, the chief representative of the federation's agency in China, said as a new market for China, GCC countries have attached greater importance to the nation, especially since the Beijing Olympics last year.
Liu said he hopes that the new strategic partnership will help the GCC countries to better understand China and vice versa.
The two sides exchanged gifts at the end of the ceremony and Kang added that he hopes the new partnership will be a "successful and fruitful one".
Chin Daily has already established wide connections with overseas publications. It has cooperation with media giants such as the New York Times, the Washington Post and the Guardian.
"We have been emphasizing the domestic market for the past 20 years, but in the future we will invest more into the bigger international market," said Kang.