The bilateral trade relations between the UAE and China have withstood the test of time. Despite the Covid-induced economic slump and negative headwinds across the globe, both nations have been able to engage in high-level trade and commerce, and strengthen their ties further.
This is evident from the fact that the UAE is China’s largest export market and the largest non-oil trading partner in the Middle East and North Africa. Conversely, China is also the UAE’s largest trading partner, accounting for 11.7 per cent of its total foreign trade. Even in the first quarter of 2022, China consolidated its top position even more. At present, the bilateral trade between the two nations is valued at $50 billion and on track to expand to $200 billion by 2030.
A global model for the world
It is for this reason that UAE Minister of Energy and Infrastructure Suhail Al Mazrouei recently termed Emirati-Chinese relations a global model to follow. Explaining his statement, he said the two countries had exchanged their applied sustainable development approach and successful policies, enabling them to attain international leadership in many areas, most notably in energy, infrastructure, housing and transport sectors.
Over the years, both the countries have been able to upgrade their ties to a comprehensive partnership. The UAE was among the first countries to join the Belt and Road Initiative of China and is also one of the founding members of the Asian Infrastructure Investment Bank (AIIB). On the other hand, China has been considerably increasing its contribution in the Emirates’ $425 billion GDP. There are more than 4,000 Chinese companies operational in the UAE, providing employment to nearly half a million people. The UAE, on the other hand, has more than 650 investment projects currently underway in China.
DMCC – the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise – has announced a doubling of Chinese companies in its free zone, and adding on average more than two Chinese companies a week. Today, DMCC is home to 703 Chinese businesses, representing nearly 12 percent of the Chinese companies in the UAE. This growth is underpinned by a long-standing diplomatic and economic relationship between the UAE and China.
Favorable laws to boost investment
Beijing’s presence in the Emirates market is going to increase further with the UAE recently framing laws to increase investment in sustainable infrastructure, including one that allows foreigners to fully own projects in the country.
“The UAE encourages joint investments with China in every sector, most notably in digital economy, green economy and circular economy.We are aware that investing in sustainable infrastructure is the way to achieve stable growth and development in the post-pandemic era. The UAE’s vision is to enhance cooperation with its international partners, including China,” said Al Mazrouei.
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