In recent years, the relationship between China and the Middle East has been heating up significantly. The Middle East, embarking on a transformation from traditional fossil fuels to new energy sources, presents a myriad of investment opportunities. At the same time, Chinese companies are increasingly seeking international expansion, with the Middle East emerging as a vital destination for their growth strategies.
On February 19, a significant business event titled “Abu Dhabi Enterprises Meet Shanghai Merchants” was held at the luxurious Peninsula Hotel in Shanghai, organized in partnership by the Shanghai Federation of Industry and Commerce and the Abu Dhabi Chamber of Commerce. The signing of a strategic cooperation agreement between these two organizations laid the groundwork for a long-term collaboration mechanism, aimed at promoting resource sharing and aligning various projects.
Abu Dhabi, as the capital and economic hub of the United Arab Emirates (UAE), boasts a unique geographic advantage, an abundance of oil and gas resources, and a rich cultural heritage. It has become known as the “Pearl of the Gulf,” capturing the interest of global enterprises. Meanwhile, Shanghai stands as China’s economic powerhouse and a forefront of reform and opening up policies; it is rapidly evolving into a cosmopolitan city deeply connected to the world, a dazzling “Oriental Pearl.” The convergence of the “Pearl of the Gulf” and the “Oriental Pearl” signals the dawn of a new chapter in cooperative endeavors.
Several dignitaries attended the event, including Ahmed Jasim Al Zaabi, President of the Abu Dhabi Chamber of Commerce, and Shou Ziqi, Vice Chairperson of the Shanghai CPPCC and President of the Shanghai Federation of Industry and Commerce. Their speeches highlighted the commitment of both sides to deepen economic ties. Over a hundred representatives from enterprises engaged in fruitful discussions, with the event being moderated by Wang Xiaohan, the Executive Vice Chairman of the Shanghai Federation.
Al Zaabi emphasized that Abu Dhabi is on a path to transform into a global business hub. By the third quarter of 2024, the contribution of non-oil GDP to the economy of Abu Dhabi is expected to surpass 54%, indicating a robust growth trajectory and diversification of the economy. The partnership between the UAE and China is viewed as a foundational pillar in this transformative journey.
Concrete evidence of this partnership is reflected in the surging investments from the UAE to China, which skyrocketed by 120% by the end of 2023, accounting for 90% of the total investments from Arab states in China. With over 6,000 Chinese enterprises operating within the UAE, including a 38% increase in registered Chinese businesses in the Abu Dhabi Chamber in 2023, this figure is projected to leap to 69.4% in 2024. Abu Dhabi stands as a beacon of opportunity worldwide, hosting a sovereign wealth fund with a management scale of approximately $1.7 trillion, and has consistently ranked as one of the safest cities globally for nine consecutive years. The Chamber's “2025-2027 Development Roadmap” focuses on fostering innovation, attracting investments, and promoting sustainable growth.
In his address, Al Zaabi expressed a strong desire for both parties to invest in talents and enterprises collaboratively, striving to co-author a prosperous future. The “Abu Dhabi Enterprises Meet Shanghai Merchants” forum aims to deepen practical cooperation between Shanghai and Abu Dhabi, establishing a multi-layered platform that encourages enterprise exchanges and project alignments.
Shou Ziqi also highlighted in her remarks that over the past 40 years since the establishment of diplomatic relations between China and the UAE, economic cooperation has consistently deepened. She underscored the solid groundwork for cooperation between Shanghai and Abu Dhabi across various sectors including port construction, intelligent management, and green development, emphasizing the significant potential for complementary advantages between both parties.
A notable feature of this event was the participation of numerous representative Chinese companies that introduced their projects. In the enterprise exchange segment, companies such as Yunda Group, SenseTime, Pinduoduo, and a humanoid robotics innovation incubator presented their innovations in sectors like aviation, artificial intelligence, cross-border e-commerce, and diverse corporate practices. Representatives from YTO Express, Huantai Group, among others, interacted with Abu Dhabi firms to discuss their respective industry fields.
During a segment dedicated to informal discussions, businesses from both regions engaged in “one-on-one” discussions to explore specific collaborative opportunities.
On that day, Chinese enterprises interviewed expressed their views on the Middle East, identifying it as an ideal destination for transshipment trade. Positioned at the crossroads of Asia, Europe, and Africa, the Middle East holds significant geographical importance, facilitating connections between major markets. Key ports such as the Port of Dubai, Khalifa Port in Abu Dhabi, and the Port of Jeddah in Saudi Arabia serve as critical conduits for transshipment, providing efficient transportation and transfer facilities that are crucial for international trade. These ports can handle imports and exports swiftly, effectively reducing logistics costs and transit times.
Moreover, transshipment trade in the Middle East can, in some cases, circumvent high tariffs. U.S. tariffs typically rely on rules of origin; thus, if products undergo processing, repackaging, or alteration of their origin labels in the Middle East, and meet the criteria under U.S. free trade agreements with certain Middle Eastern countries (like those with the UAE and Israel), they may benefit from lower or even zero tariffs.
Some entrepreneurs expressed their hopes to delve further into market opportunities in the Middle East, noting the region's keen interest in investing in and integrating Chinese IT enterprises, manufacturing firms, and various sectors into their local economies.