The United Arab Emirates (UAE) plays a significant role in regional and international development, supported by forward-looking leadership, a strategic location and a favorable business climate. These aspects have made the UAE a significant economic force with a significant influence on global initiatives, particularly the Belt and Road Initiative (BRI), launched by Chinese President Xi Jinping in 2013.
The UAE’s active participation in the BRI, the Ninth Summit of which will be held in Hong Kong on September 11-12 under the theme “Building a Connected and Innovative Belt and Road”, underlines the country’s commitment to economic development and international cooperation, especially in light of its strong ties with China and Hong Kong.
As an economic leader in the region, the UAE continues to make significant contributions to the initiative, which includes some 65 member countries, representing 30% of the world’s GDP. The UAE has invested $10 billion in a joint investment fund with China to support projects in East Africa and signed 13 MoUs with China in 2018 to facilitate investment in various sectors of the UAE economy.
According to the data for the first half of 2023, non-oil trade between the UAE and BRI countries amounted to $305 billion, representing 90% of the UAE’s non-oil trade and an increase of over 13% compared to the same period in 2022. In addition, 88% of the UAE’s imports from BRI countries formed the basis for 94% of non-oil exports and 92% of re-exports to these regions.
The Belt and Road Initiative is a massive infrastructure and investment project aimed at connecting Asia, Europe and Africa through land and sea routes. The UAE’s strategic location makes it central to the success of this initiative. It is no surprise that the country’s ports and high-quality logistics infrastructure serve as important hubs for trade along BRI routes, facilitating the efficient movement of goods and services, which in turn contributes to the overall success of the initiative itself. The UAE is actively pursuing technology and innovation, promoting them as key drivers of growth within the BRI, initiating cooperation in areas such as renewable energy, artificial intelligence and digital infrastructure.
The ninth summit takes place in the year that marks the 40th anniversary of the establishment of diplomatic relations between the UAE and China, which began in 1984. China has become the UAE’s largest trading partner, and the BRI has opened up many opportunities to strengthen trade and economic cooperation. The UAE has been a strategic partner of the initiative since its inception, and its significant trade potential, flexible policy and regulatory framework have made the country an important trade hub in the region and one of the most significant commercial hubs in the world. Recent data released by China’s Ministry of Foreign Affairs showed that trade volume between the two countries reached $50.108 billion in the first half of 2024, including $18.66 billion in exports from the UAE and $31.448 billion in imports from China.
A close look at the economic relations between the United Arab Emirates (UAE) and China reveals deep cooperation and coordination at all levels. Since the establishment of diplomatic ties, trade between the countries has grown by around 800 times, with both sides aiming to reach $200 billion in trade by 2030.
The two countries have signed over 148 bilateral agreements and memorandums of understanding in various fields. Last year, the UAE’s non-oil trade with China reached AED 296 billion, which is around $81 billion, an increase of 4.2% compared to 2022. This has secured China’s status as the UAE’s number one trading partner, accounting for 12% of the country’s non-oil trade in 2023. In terms of investment flows, the UAE invested around $11.9 billion in the Chinese economy from 2003 to 2023, covering sectors such as telecommunications, renewable energy, transportation, hotels and rubber. Chinese investment activity in the UAE amounted to $7.7 billion during the same period.
The UAE’s relationship with Hong Kong, an important administrative region of China, is of particular importance. Hong Kong plays a key role in the Belt and Road Initiative, and the UAE continues to develop ties in the areas of trade, finance and logistics. Non-oil trade between the UAE and Hong Kong amounted to $12 billion in 2022, a 50% increase compared to the previous 10 years. Foreign direct investment from Hong Kong to the UAE also reached $2.1 billion, especially in retail and transportation.
Hong Kong serves as an important bridge for UAE companies to enter the Chinese market and other Asian countries. Both territories, as major financial centres, actively collaborate in banking, insurance and capital markets. In logistics, Hong Kong’s world-class infrastructure complements the UAE’s strategic location, making it a valuable partner in trade both regionally and globally. The UAE’s active participation in the Belt and Road Initiative, supported by its partnership with China and Hong Kong, demonstrates its commitment to sustainable economic growth and international cooperation. As an influential economic force in the region, the UAE continues to make important contributions to global initiatives, helping to create a more interconnected and prosperous world.
