News — ChangeLab

UAE and China plan to expand joint investment opportunities in new economic sectors

Representatives of the two countries UAE and China met late last week on the sidelines of an economic forum in Dubai to discuss expanding joint investment opportunities in new sectors of the economy, trade, real estate, financial services and many other areas of mutual interest.

The strategic partnership between the UAE and the PRC dates back more than 40 years. The UAE is China's main trade and financial partner in the Middle East. Last year, the volume of oil trade between the countries amounted to more than $72 billion, exceeding the 2021 figures by 18%, and the total turnover grew by 68% compared to the same period last year.

China, in turn, is the world's third largest foreign investor in the UAE. Thus, the amount of Chinese foreign direct investment in the UAE in 2022 was $397 million, which is 54% of the total investment by China in all 22 countries of the Arab League. According to experts, this mutually complementary cooperation will open up numerous opportunities for mutual investment in the next 2-3 years in the areas of innovation, technology transfer and economic diversification for the two countries.

Thus, the Emirates, as a regional economic power in the Middle East, has always been an attractive destination for foreign investors, in which China is no exception. The two countries have recently sought to deepen their relationship in the financial services sector, enabling their respective bank branches to facilitate trade and bilateral investment, and expanding cooperation between the Shanghai and Hong Kong stock exchanges and international financial centres in the UAE. Together, the two governments hope to strengthen the financial industry in their domestic markets and create a thriving ecosystem for financial technology development.