Rasha Tabila (Abu Dhabi)
The economic partnership between the UAE and the Republic of China continues to open new horizons for prosperity and growth, benefiting from the strength of the well-established strategic relations between the two countries that extend for many decades, during which the trade and investment movement witnessed a significant recovery, translated by trade exchange numbers and indicators during the past ten years, which exceeded 2 trillion. Dirham from 2014 to 2023.
According to trade exchange figures between the two countries, the volume of non-oil foreign trade increased last year by 68% to reach 296 billion dirhams, compared to 175.8 billion dirhams in 2014, bringing the total non-oil trade between the two countries to about 2 trillion dirhams in ten years, with China leading the way. List of the UAE’s largest trading partners for the past year, accounting for 12% of the UAE’s non-oil trade.
The two countries are working to enhance cooperation in various sectors, the most important of which are the new economy, entrepreneurship, technology, tourism, small and medium enterprises, energy, renewable energy, agriculture, aviation, logistical transport, infrastructure and industry, in a way that enhances the sustainable development of the economies of the two countries. According to data from the Federal Center for Competitiveness and Statistics, the total non-oil trade between the two countries in 2014 amounted to about 175.8 billion dirhams, 174.6 billion dirhams in 2015, and 170 billion dirhams in 2016, increasing significantly to 195.6 billion dirhams in 2017, and 158.3 billion dirhams. In 2018, 184.1 billion dirhams in 2019, and 173.8 billion dirhams in 2020, it rises significantly to 223.5 billion dirhams in 2021, and rises to 284 billion dirhams in 2022, and 296 billion dirhams in 2023, a growth of 4.2% compared to 2022.
Local data indicate that 18% of the UAE’s imports come from China, and this percentage ranks first. It also ranks 11th in the UAE’s non-oil exports with a contribution of 2.4%, and 8th in re-exports with a contribution of 4%.
During 2023, if trade in crude oil is excluded from China’s trade with Arab countries, the UAE will rank first in the Arab world with a contribution of 30% of China’s trade from Arab countries. Also, in terms of China’s total trade with the world, the UAE will be ranked second in the Arab world after Saudi Arabia, with a contribution rate of 24% of China’s trade with Arab countries, is ranked 21st globally, and it is also ranked 18th globally for imports.
Inter-investments
China is the third largest global investor in the Emirates, as Chinese investments in the Emirates amounted to about 26 billion dirhams ($7 billion) by the end of 2021, with a contribution of 5% of the total foreign direct investment coming into the Emirates.
The total UAE investments in the Republic of China amounted to about 9 billion dirhams ($2.3 billion) by the end of 2022, and more than 55 Emirati companies operate in the Chinese market.
The total UAE investment flows to China amounted to about 45 billion dirhams ($11.9 billion) between 2003 and 2023, while Chinese investment flows to the UAE amounted to 28 billion dirhams ($7.7 billion) during the same period. The most important sectors of UAE investments in China include communications, Renewable energy, transportation and storage, hotels and tourism, and rubber.
Import and export goods
According to data from the Federal Center for Competitiveness and Statistics, the 3 most important commodities imported from China in 2023 are communications devices and equipment, machines for self-processing information and their units, and cars. As for the 3 most important commodities exported to China last year, they are ethylene polymers, propylene polymers, and mineral oils. 3 goods re-exported to China in 2023 are communications devices and equipment, information self-processing machines, and automobiles.
Economic agreements and partnerships
The governments of the UAE and the People’s Republic of China agreed, during the meeting of the eighth session of the Joint Economic, Commercial and Technical Committee, which was held in Abu Dhabi last February, to enhance cooperation in a number of sectors and areas of common interest, especially the new economy, entrepreneurship, technology, tourism, small and medium enterprises, energy, and renewable energy. Agriculture, aviation, logistical transport, infrastructure and industry, in a way that enhances the sustainable development of the economies of the two countries.
The meeting with the Chinese side represents an important milestone for developing the distinguished economic partnership between the two countries towards more competitive levels, expanding areas of cooperation between them in sectors of mutual interest, especially the new economy, entrepreneurship, tourism, aviation and logistical transport, enhancing communication between the Emirati and Chinese business communities, and supporting project growth mechanisms. Small and medium sized markets in both countries.
According to data from the Ministry of Economy, the number of Chinese economic licenses in the UAE has reached more than 14.5 thousand licenses, and China is the third largest source of foreign direct investment flows to the UAE with a value of $6.3 billion, with bilateral investment between the two countries increasing in recent years, reaching the level of A record $15 billion in 2022.
Belt and Road
The UAE is keen to continue supporting the Belt and Road Initiative, as an active partner in this initiative since its launch in 2013, through its development potential, strategic location, and pioneering economic role in the region. The UAE has pumped $10 billion into a joint Chinese-Emirati investment fund to support… Initiative projects in East Africa.
Since the launch of the Belt and Road Initiative, the UAE, with its development potential, strategic location, and pioneering economic role in the region, has been considered an active participant in the initiative, which is considered a favorable opportunity for the country’s development and investment aspirations regionally and internationally, especially since the initiative focuses on the UAE’s pivotal role in international trade and is in line with the directions of the UAE Centennial, As well as through economic partnership agreements pursued by the state.
The initiative aims to build a trade and infrastructure network linking Asia, Europe and Africa in an effort to achieve joint development and prosperity. The name refers to the network of land and sea roads that linked China and Europe through the Middle East, with a length exceeding ten thousand kilometres.
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