The UAE and China have forged a remarkable model of cooperation, built on shared ambitions and a commitment to sustainable development, leading to mutual prosperity and economic progress. This year, the two nations celebrate 40 years of diplomatic relations, highlighting their journey since 1984 which has been marked by innovation and collaboration across key sectors, elevating ties to a strategic partnership and solidifying them through a comprehensive economic partnership.
A cornerstone of this partnership is the UAE’s active role in China’s Belt and Road Initiative (BRI). Since its launch in 2013, the UAE has leveraged its strategic location, advanced infrastructure, and leadership in regional trade to play a pivotal role in the initiative.
UAE invests $10 billion to support BRI projects
Notably, the UAE has invested $10 billion in a joint China-UAE investment fund to support BRI projects in East Africa. In 2018, the UAE also signed 13 memorandums of understanding with China to invest in multiple sectors in the UAE. The UAE is also a founding member of the Asian Infrastructure Investment Bank.
The UAE’s non-oil trade with the countries within the Belt and Road Initiative reached $305 billion, which contributed 90 percent of the UAE’s non-oil trade during the first half of 2023, an annual growth of over 13 percent.
Further solidifying this collaboration is the UAE’s active engagement in the 10th Ministerial Meeting of the China-Arab States Cooperation Forum, emphasizing the shared vision of strengthening Arab-China ties and expanding horizons for strategic collaboration and progress.
Trade, investment ties flourish
The UAE-China economic partnership continues to flourish, with over 14,500 Chinese business licenses issued in the UAE. Additionally, China ranks as the UAE’s third-largest source of foreign direct investment at $6.3 billion, while the total investments between the two countries surged to $15 billion in 2022.
Between 2003 and 2023, the UAE’s investment flows to China amounted to $11.9 billion, covering sectors such as telecommunications, renewable energy, transport and storage, hotels and tourism, and rubber. Meanwhile, Chinese investment flows to the UAE totaled $7.7 billion during the same period.
China is also the UAE’s largest trading partner in the Arab world for non-oil trade, while the UAE is China’s top Arab trading partner. Non-oil trade between the two countries surpassed $50 billion in the first half of 2024, with projections exceeding $100 billion by year-end.
The volume of trade exchange between the UAE and China has risen 800-fold since the establishment of diplomatic relations between the two countries. The volume of trade exchange between the two countries is set to reach $200 billion by 2030.
In 2023, non-oil trade between the UAE and China reached $81 billion, reflecting 4.2 percent growth from 2022, with China accounting for 12 percent of the UAE’s total non-oil trade.
In addition, the UAE’s total non-oil trade with Hong Kong reached $12 billion in 2022, a growth of nearly 50 percent in 10 years. Meanwhile, foreign direct investment (FDI) from Hong Kong in the UAE reached $2.1 billion, mainly in retail and automotive, manufacturing, and transport and storage.
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UAE welcomes 1.2 million visitors from China
Tourism also remains a significant area of collaboration. In 2023, the UAE welcomed approximately 1.2 million visitors from China, while the Chinese population reached 350,000 in the UAE. More than 210 flights connect the two nations each month, reflecting the strength of their aviation ties.
In 2023, the UAE’s accession to the BRICS group, alongside Brazil, Russia, India, China, and South Africa, marked a major milestone. Announced during the 15th BRICS Summit in Johannesburg, this membership highlights the UAE’s dedication to multilateral cooperation and its role in fostering peace, development, and economic growth on a global scale.
