UAE and China explore ways to enhance economic and investment relations in new economy
The UAE-China Joint Investment and Economic Cooperation Working Group convened for its inaugural meeting aimed at enhancing the economic ties and investment growth between UAE and China with special focus on elevating cooperation in sectors of mutual interest – including the new economy, entrepreneurship, tourism, aviation, and logistics services.
The meeting was chaired from the UAE side by H.E. Abdullah Ahmed Al Saleh, Under-Secretary of the Ministry of Economy, and from the Chinese side by H.E. Ling Ji, Vice Minister of Commerce and Deputy China International Trade Representative, in the presence of H.E Ou Boqian, the Consul General of the People’s Republic of China in the UAE, alongside representatives from several government bodies from both sides.
In his opening speech, H.E. Al Saleh emphasised that Emirati-Chinese relations are strategic and represent a model of fruitful cooperation spanning over four decades, marked by significant economic growth. “These relations, thanks to the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and the vision of His Excellency Xi Jinping, President of China, have significantly strengthened trade and investment ties between the two nations. This collaboration has fostered a deeper understanding and an enhanced economic partnership, advancing shared interests and promoting the growth and sustainable development of the two friendly countries,” H.E. added.
H.E. Abdulla Al Saleh said: “The meeting of the UAE-China Joint Investment and Economic Cooperation Working Group is an important milestone in exploring new opportunities for partnership and collaboration. It aims to deepen mutual trust between the Chinese and Emirati business communities while highlighting the flexible and attractive investment environment provided by the markets of both countries, thereby enhancing the competitiveness and prosperity of our economic relations.”
China has been a key trading partner for the UAE, accounting for 11.2 per cent of the UAE’s non-oil trade in the first half of 2024. In 2023, the UAE became China’s leading trading partner in the Middle East and Africa, representing 25 per cent of its non-oil trade with the region.
In the first six months of 2024, the trade between the UAE and China reached over USD 42.4 billion, marking a growth of approximately 3 per cent, as compared to the same period in 2023. In 2023, the trade value between the UAE and China reached USD 86.7 billion, experiencing a growth of 12.1 per cent compared to the previous year. Additionally, by the end of 2023, the bilateral trade between the two nations amounted to AED 120 billion.
China ranks 10th among the UAE’s non-oil exports, making up 2 per cent during the first half of 2024. Similarly, China also holds the 10th position in the UAE’s re-exports, accounting for 2.5 per cent during the same period. Meanwhile, China is the source of 18 per cent of the UAE’s imports. By the end of 2023, the UAE’s investments in China reached around USD 4.5 billion, reflecting a doubling of the previous year’s figures with a remarkable 96 per cent increase. These investments are allocated across key sectors, including renewable energy, infrastructure, transportation, and telecommunications. On the other hand, China’s investments in the UAE reached a total value of USD 5.8 billion by the end of 2023.
The meeting addressed key aspects of investment cooperation between the two countries, including strategies to enhance UAE investments in China and encourage Chinese companies to expand their investments in the UAE. Furthermore, the meeting explored opportunities of collaborations in areas including the digital economy, green development, support for small and medium-sized enterprises (SMEs), and entrepreneurship. Additionally, the sectors of tourism, air transport, and aviation were also highlighted, with the UAE welcoming more than a million Chinese tourists in 2023 and operating over 200 flights per month between the two countries. Both sides emphasised the importance of leveraging this momentum to strengthen cultural and economic exchange.
The UAE extended an invitation to the Chinese business community to leverage the attractive investment environment offered by the UAE. With over 15,000 Chinese companies already operating in the UAE, the aim is to further strengthen the strategic partnership between the two countries in order to achieve their economic visions.
The formation of the UAE-China Investment and Economic Cooperation Working Group is the outcome of a memorandum of understanding (MoU) signed by both countries in May. The primary objective of the MoU is to strengthen economic and investment collaboration as part of the Belt and Road Initiative and create new avenues for cooperation in critical sectors – including green development, infrastructure, and the digital economy. These efforts will enhance bilateral relations and foster sustainable development for both countries.
Representatives from a range of government and private organisations in both UAE and China attended the meeting. From the UAE side, participants included representatives from the Ministry of Investment, the Ministry of Climate Change and Environment, the Ministry of Industry and Advanced Technology (MOIAT), the Abu Dhabi Chamber of Commerce, the Dubai Chamber of Commerce, the Department of Economic Development and Tourism in Dubai, and the Abu Dhabi Investment Office. On the Chinese side, participants included delegates from the Ministry of Foreign Affairs and International Cooperation, the Ministry of Foreign Affairs, the China Embassy in the UAE, and the Bank of China.
Last Updated on 4 days by News Desk 1
