Mariam Mahmoud

The economic partnership between the United Arab Emirates and China has acquired increasing strategic significance in recent years, particularly across priority sectors such as ports and logistics, technology transfer, artificial intelligence, data centers, smart cities, and clean energy. This evolution reflects a shared strategic vision aimed at enhancing both countries’ global positioning, while leveraging their economic and human capital to drive sustainable, innovation-led growth.Amid mounting global challenges—including <a href="https://uecn.org/uae-china-economic-horizon-2026-economic-outlook/" rel="noopener noreferrer" target="_blank">trade tensions</a>, geopolitical uncertainty, and structural shifts in the energy sector—the UAE–China partnership is emerging as a key source of strategic opportunities for companies and investors across both markets.Key IndicatorsThe scale and depth of economic cooperation between the two countries have expanded markedly over the past decade. The most salient indicators include:1. Strong Expansion in Bilateral Trade: Non-oil trade between the UAE and China <a href="https://www.thenationalnews.com/business/economy/2026/04/15/uae-and-china-sign-initial-pact-to-boost-investment-flows/" rel="noopener noreferrer" target="_blank">exceeded $100 billion</a> for the first time in 2025, reaching approximately $111.5 billion, with a robust annual growth rate of 24.5%. <a href="https://www.thenationalnews.com/business/economy/2026/04/15/uae-and-china-sign-initial-pact-to-boost-investment-flows/#:~:text=The%20UAE%20and%20China%20signed,the%20world's%20second%2Dbiggest%20economy" rel="noopener noreferrer" target="_blank">Both sides</a> aim to increase trade flows to over $300 billion by 2030.China remains the UAE’s largest global trading partner. Chinese exports to the UAE reached around <a href="about:blank" rel="noopener noreferrer" target="_blank">$72.9 billion</a> in 2025, showing an 11.2% increase compared with 2024. These exports span a wide range of goods, including smartphones, vehicles (particularly electric vehicles), laptops and tablets, photovoltaic cells, LED components, televisions and display systems, air-conditioning units, data processing systems, and synthetic textiles.In February 2026 alone, UAE exports to China grew by 6% year-on-year to <a href="https://www.thenationalnews.com/business/economy/2026/04/15/uae-and-china-sign-initial-pact-to-boost-investment-flows/" rel="noopener noreferrer" target="_blank">$2.77 billion</a>, while imports surged by more than 30% to $5.55 billion.2. Rising Foreign Direct Investment Flows: Chinese investments accounted for approximately <a href="https://www.wealthbriefingasia.com/article.php/China%2C-UAE-Sign-Investment-Pact#:~:text=It%20also%20supports%20creating%20a,for%20regional%20and%20global%20growth.%E2%80%9D" rel="noopener noreferrer" target="_blank">6.3%</a> of the UAE’s total inward FDI stock by 2024, concentrated in infrastructure, ports, railways, real estate, technology, renewable energy, and manufacturing.Conversely, <a href="https://www.china-briefing.com/news/chinas-fdi-in-2025-a-year-of-recalibration/" rel="noopener noreferrer" target="_blank">UAE outbound investment flows</a> to China increased by 27.3% in 2025. Notably, Mubadala Investment Company has invested more than $17 billion across <a href="https://arabic.news.cn/20260414/6d0ef467763e41b5b9127ac6ebfcf664/c.html" rel="noopener noreferrer" target="_blank">over 100 projects</a> in China since 2015, spanning biotechnology, finance, real estate, and digital technologies. This reflects the UAE’s broader strategy of diversification and sustainability in strengthening its global economic footprint.3. Expanding Use of Renminbi in Transactions: The use of the Chinese currency (renminbi) in bilateral financial transactions reached approximately 864 billion yuan (equivalent to <a href="https://arabic.news.cn/20260409/f71b529633b449e69335d7610b2a7c36/c.html" rel="noopener noreferrer" target="_blank">$121 billion</a>) during the first nine months of 2025, marking a 20% year-on-year increase. This trend underscores the deepening financial integration between the two economies.4. Strengthening Air Connectivity: On April 13, 2026, Etihad Airways announced a major expansion of its China network, including five new destinations and 28 additional weekly flights, bringing the <a href="https://www.etihad.com/ar-ae/news/etihad-airways-expands-china-network-strengthens-china-eastern-joint-venture-with-five-new-routes-and-28-additional-weekly-flights" rel="noopener noreferrer" target="_blank">total to 35 weekly flights</a> across five destinations.This development builds on the mutual visa exemption policy in place since 2018, which has facilitated mobility between the two countries. The widespread adoption of Chinese payment systems across retail and duty-free sectors has further supported a rise in Chinese visitors to Dubai, reaching approximately 824,000 in 2024, alongside more than 110 direct weekly flights.Frameworks for Deeper PartnershipThe deepening of UAE–China relations is reflected in the increasing scale and scope of bilateral agreements across strategic sectors:1. ADQ’s First Syndicated Financing Deal in China: <a href="https://www.adq.ae/newsroom/adq-closes-usd-5-billion-financing-deal-with-asian-financial-institutions" rel="noopener noreferrer" target="_blank">ADQ</a> completed its first syndicated financing transaction in Greater China on December 25, 2025, in collaboration with Asian financial institutions. The five-year deal was valued at $5 billion.Strong demand led to subscriptions reaching approximately $12 billion—nearly three times the initial offering—prompting an increase in the deal size. This <a href="https://www.adq.ae/newsroom/adq-closes-usd-5-billion-financing-deal-with-asian-financial-institutions" rel="noopener noreferrer" target="_blank">oversubscription</a> reflects strong investor confidence in ADQ’s credit profile and underscores growing interest among Asian lenders in UAE-based investment entities.2. Expansion of Trade and Investment Agreements: During the official visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Beijing, which included talks with Chinese Premier Li Qiang, a <a href="https://www.thenationalnews.com/business/economy/2026/04/15/uae-and-china-sign-initial-pact-to-boost-investment-flows/#:~:text=The%20UAE%20and%20China%20signed,the%20world's%20second%2Dbiggest%20economy" rel="noopener noreferrer" target="_blank">preliminary agreement</a> was signed between the two sides on April 14, 2026. This agreement, which seeks to boost investor confidence and mobilize capital flows between the two countries, lays out a framework for coordination between government agencies and the private sector—including SMEs—to enhance investment opportunities. Additional agreements included <a href="https://solarquarter.com/2026/04/30/ras-al-khaimah-signs-mous-with-bank-of-china-and-icbc-to-boost-investment-infrastructure-and-renewable-energy-cooperation-with-china/" rel="noopener noreferrer" target="_blank">memoranda of understanding</a> with Bank of China and the Industrial and Commercial Bank of China to facilitate investment flows, support Chinese firms in establishing operations in the UAE, and develop financing solutions for major projects across sectors such as manufacturing, logistics, infrastructure, and renewable energy.3. Agreements in Energy, Technology, and Sustainability: On the sidelines of the UAE–China Business Promotion Conference in Beijing on April 13, 2026, a total of 24 <a href="https://www.mediaoffice.abudhabi/en/crown-prince-news/crown-prince-of-abu-dhabi-and-premier-of-china-discuss-strengthening-comprehensive-strategic-partnership-and-expanding-cooperation/" rel="noopener noreferrer" target="_blank">agreements and memoranda of understanding</a> were signed across sectors including clean energy, sustainable agriculture, environmental sustainability, health sciences, and advanced technology.These agreements mark a transition toward a new phase of cooperation focused on <a href="https://research.hktdc.com/en/article/MjMxMTQ2NDAzOA" rel="noopener noreferrer" target="_blank">supply chain resilience</a>, innovation, and the expansion of non-oil trade.4. Expanding Presence of Chinese Firms in the UAE: More than <a href="https://uecn.org/uae-china-economic-horizon-2026-economic-outlook/" rel="noopener noreferrer" target="_blank">15,000 Chinese companies</a> operate in the UAE across sectors such as infrastructure, real estate, technology, renewable energy, and manufacturing. This presence plays a central role in facilitating technology transfer, particularly in telecommunications, smart cities, e-commerce, fintech, and clean energy.In 2025, approximately <a href="https://www.emaratalyoum.com/business/local/2026-04-13-1.2034918" rel="noopener noreferrer" target="_blank">1,583 new Chinese</a> firms joined the Dubai Chamber of Commerce, while over 14,500 commercial licenses were issued to <a href="https://mof.gov.ae/en/news/uae-strengthens-partnerships-with-chinese-companies-through-mofs-participation-in-19th-asian-financial-forum-and-global-business-summit-in-hong-kong/" rel="noopener noreferrer" target="_blank">Chinese businesses</a>. These trends reflect strong confidence in the UAE’s regulatory environment, investment framework, currency stability, and competitive tax regime.5. Deepening Cooperation in Clean Energy: The UAE Ministry of Investment signed a memorandum of understanding with Jereh Group on April 13, 2026, to develop an <a href="https://www.wam.ae/en/article/bzqumw2-ministry-investment-jereh-group-build-integrated" rel="noopener noreferrer" target="_blank">integrated clean energy and manufacturing platform</a>.The project includes small modular reactors for carbon-free baseload energy, an anode materials production facility with a capacity of 100,000 tons annually, and lithium battery recycling facilities, to be implemented over three to five years.Meanwhile, Chinese exports of <a href="https://arabic.news.cn/20260401/ac5a036522354608a4146e79a56ad264/c.html" rel="noopener noreferrer" target="_blank">photovoltaic units</a> to the UAE reached approximately 1.069 billion yuan in early 2026, compared with 401 million yuan during the same period in 2025. The Al Ajban <a href="https://arabic.news.cn/20260401/ac5a036522354608a4146e79a56ad264/c.html" rel="noopener noreferrer" target="_blank">Solar PV Plant</a>—developed by PowerChina—has also introduced robotic installation systems, with a planned capacity of 1.5 gigawatts.6. Continued Attraction of Chinese Technology Firms: Chinese technology firms continue to expand into the UAE. <a href="https://www.cnbc.com/2026/04/15/china-robotaxi-didi-weride-baidu-dubai-uae-expansion.html" rel="noopener noreferrer" target="_blank">DiDi’s autonomous</a> driving division has identified the UAE as its first international expansion market. Meanwhile, cooperation in smart agriculture is advancing through <a href="https://arabic.news.cn/20260414/6d0ef467763e41b5b9127ac6ebfcf664/c.html" rel="noopener noreferrer" target="_blank">projects</a> such as the "Innovative Agricultural Greenhouses" initiative implemented by Inspur in collaboration with Abu Dhabi authorities.7. Cooperation in Healthcare and Life Sciences: As part of the comprehensive strategic partnership between China and the UAE, Arcera, a UAE-based life sciences company, signed a memorandum of understanding with <a href="https://www.zawya.com/ar/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86%D8%A7%D8%AA-%D8%A7%D9%84%D8%B5%D8%AD%D9%81%D9%8A%D8%A9/%D8%A8%D9%8A%D8%A7%D9%86%D8%A7%D8%AA-%D8%A7%D9%84%D8%B4%D8%B1%D9%83%D8%A7%D8%AA/%D8%B4%D8%B1%D8%A7%D9%83%D8%A9-%D8%A8%D9%8A%D9%86-%D8%A3%D8%B1%D8%B3%D9%8A%D8%B1%D8%A7-%D9%88%D9%81%D9%88%D8%B3%D9%88%D9%86-%D9%81%D8%A7%D8%B1%D9%85%D8%A7-%D8%AA%D8%B1%D8%B3%D9%91%D8%AE-%D8%A7%D9%84%D8%AA%D8%B9%D8%A7%D9%88%D9%86-%D8%A7%D9%84%D8%A5%D9%85%D8%A7%D8%B1%D8%A7%D8%AA%D9%8A-%D8%A7%D9%84%D8%B5%D9%8A%D9%86%D9%8A-%D9%81%D9%8A-%D8%A7%D9%84%D8%A7%D8%A8%D8%AA%D9%83%D8%A7%D8%B1-%D8%A7%D9%84%D8%B7%D8%A8%D9%8A-xzmqldqq" rel="noopener noreferrer" target="_blank">Fosun Pharma</a> on April 19, 2026 to enhance access to advanced pharmaceuticals and medical technologies, while supporting global development in the life sciences sector.ConclusionThe UAE occupies a central position in China’s global strategy, particularly in ensuring energy security through the supply of crude oil, refined products, and liquefied natural gas. It also serves as a strategic gateway to markets across the Gulf, the Middle East and North Africa, and South Asia, within the broader Belt and Road framework.Given the expanding network of agreements and the alignment of strategic interests between the two countries, the partnership is well-positioned for further growth. Despite ongoing challenges—including geopolitical tensions and supply chain disruptions—significant opportunities remain across innovation, sustainable energy, and smart infrastructure.These dynamics are likely to reinforce the UAE–China partnership as a leading model of effective international economic cooperation.

How the UAE and China Are Expanding Economic Ties?