Dubai-Based Emirati Companies Channel $1.4 Billion into Chinese Market
Dubai – China: Dubai’s Emirati firms are increasingly setting their sights on the Chinese market, reflecting a growing appetite for investment as trade relations between the UAE and China continue to flourish. This strategic shift has seen Dubai-based companies invest a total of $1.4 billion in China between 2015 and 2023, according to Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers.
Lootah highlighted the robust interest among Emirati businesses in expanding their footprint in China, attributing this trend to the enhanced trade exchanges and the promising potential for mutual investments that have developed between the two nations. “Both nations are working closely to boost cooperation across various sectors, particularly in the new economy, technology, entrepreneurship, tourism, small and medium enterprises (SMEs), energy, renewable energy, agriculture, aviation, logistics, infrastructure, and industry. These efforts are crucial for the sustainable economic growth of both countries,” Lootah stated.
This deepening economic relationship is further evidenced by the significant presence of Chinese companies in Dubai.
By the end of the first half of 2024, around 5,400 Chinese firms were registered with the Dubai Chamber of Commerce. Notably, 742 of these companies were newly established this year alone, marking a significant 12% growth in new registrations. This surge in Chinese businesses choosing Dubai as a strategic base underscores the emirate’s growing appeal as a global hub for international expansion.
While Chinese companies in Dubai have traditionally focused on sectors such as trade, logistics, and business consulting, Lootah noted a noticeable shift towards emerging industries. “There is now a noticeable increase in their interest in emerging sectors such as AI, green technologies, data centres, Web 3, and the infrastructure needed to support these sectors,” Lootah observed. “These future-oriented sectors are expected to witness significant growth in Dubai.”
In addition to these developments, the Dubai Business Forum held in China marked a significant milestone as the first international edition of the forum. This event underscored Dubai’s critical role in providing attractive investment opportunities to Chinese companies and highlighted the ongoing efforts to strengthen economic ties between the two regions. As both nations continue to collaborate across various sectors, the future looks promising for further investment and economic growth.
