Why the re-opening of China is good news for the UAE economy

October 26, 2023

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UAE is considered the best region for conducting business activities due to its healthy work climate, rapidly changing and relaxed policies, and easy access to the global market making it an ideal location to establish and expand business ventures in Dubai. Being the biggest business hub in the world, UAE welcomes Asian and European countries to trade in its international market to boost their economy which eventually profits the UAE economy. UAE is very welcoming towards Asian countries but it has a special interest in China’s investment and china also considers UAE at the top for investment amongst the twenty most significant Arab countries. China and UAE share the same interest in a more robust and sustainable economy by finding innovative ideas in technology, building seaports, aircraft, and modern infrastructure, and respecting, and honoring moral values while collaborating with other counties. Before the pandemic crisis, both countries were stepping into many projects for their mutual interest. First and most important was the oil trade while other projects were based on artificial intelligence, energy crisis, 5G telecommunications, genetics, and biotechnology.
UAE was also earning a great deal of profit from China’s investors and tourists. The major reason is UAE’s favorable geographical location and modern infrastructure that makes China’s ‘gateway to the world’.

Re-opening of China is great news for UAE:


It had been three years Dec 2019-2022, since china closed its door to international trade, tourism, and other economic activities. Now in January 2023, china bid farewell to covid-19 and started continuing international trade and collaborations that were affected due to pandemic crises.
On the other side UAE economy also got a serious setback in the absence of Chinese tourists and the export of oil that used to generate good revenue before the pandemic. Here is why UAE has good reason to welcome the news of China’s back to its normal routine as a main economic trade partner and popular travel destination for Chinese visitors.
Meanwhile, in the year (2020-2022) UAE made its policies that were flexible for foreign investors to have 100% ownership of the business in the mainland and took the initiative of Golden Visa so they can get the attention of every tourist and cannot resist without investing in Dubai.
To recover from this loss, UAE Government has planned more Emirates flights between china and Dubai to facilitate Chinese tourists.

Climate Change Conference in UAE:

    This year Nov-Dec 2023 a climate change conference happening in Dubai is of great importance. China will be present at the conference and will find ways to minimize the effects of climate change by collaborating in clean energy and green technologies with the UAE. Since both countries have faced huge economic losses due to the pandemic climate change so they have a high responsibility to take measures in reducing carbon emissions. Their combined efforts will not only boost the economies of both countries through bilateral investment in upcoming projects but also benefit the world.

    China investment in UAE:

    From 2013 till now china has done several projects in the interest of both countries in UAE. Here is a list of significant investment and development schemes completed by China so far in the UAE.

    • China has key investments in constructing Dubai Airport with extraordinary infrastructure to facilitate passengers and has marked Dubai Airport as one of the best and most luxurious airports in the world.
    • China’s collaboration in building and upgrading seaports in the Gulf over the last decade to expedite trade is significant.
    • China has invested and contributed to the construction of the three biggest solar parks in UAE namely Mohammed bin Rashid, Noor Abu Dhabi, and Al Dhafra.
    • China is using Abu Dhabi’s Port khalifa for its container shipments and 60% of its exports operate to the MENA region through UAE.

    Above mentioned are the most important developments in UAE, done in partnership with China. Other than this BRI (Belt and Road Initiative) taken by China considers the UAE a leading player in the success of this project and UAE is a major logistic partner of this venture.

    Other common interests of China’s re-opening:
    Tourism boosting the UAE economy:
    Sustaining tourism means welcoming more and more tourists to Dubai. As Covid-19 did not allow the Chinese to travel, so they saved a lot of money and they are planning to invest in traveling to their dream locations like Dubai. UAE has already increased the number of Emirates flights operating in China to facilitate tourists and hopes to boost the UAE economy as before through Chinese investment in the middle east.

    • Oil trading to China:
      China is the world’s second-largest economy and its oil import is majorly dependent on UAE. In (2019-20) china became one of the largest export markets for crude petroleum from the UAE. In 2020, china imported $8.6bn crude oil out of the UAE’s total $42bn oil in exports.
    • Contribution to Science and technology:
      Bilateral cooperation in the development of science and technology has brought these counties together, especially during Covid -19, they partnered to manufacture Sino pharm Vac in the Middle East. Now both countries are aiming high to work in the field of telecommunication, Artificial intelligence, solar system, and space tech for their mutual interest to boost their economy.

    With every passing year collaboration between UAE and china is a positive sign for a boom in the UAE market sector. Especially after the launching of UAE ‘Tourism Strategy 2031’ which attracts more investors to generate revenue.
    KWSME along with the Dubai government has many great and easy ways to Start-up Company in UAE. Contacting our representatives will guide the investors in which category of investments they should go and what suits and benefits them best.

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