BEIJING // A growing number of Chinese companies are investing in Dubai's free zones, but officials warn instability in other parts of the Middle East could slow growth.
There are 147 Chinese companies with a base in Jebel Ali Free Zone, more than double the figure from four years ago.
"In terms of growth, in terms of the number of companies, in terms of trade, in the last three years after the recession one of the few countries growing has been China," said Khalid al Marzooqi, the Asia-Pacific assistant manager for Jebel Ali Free Zone.
Mr al Marzooqi said Chinese oil companies, attracted by opportunities in Iraq, had been opening their Middle East headquarters in Dubai.
"When you have these companies you will have other businesses following, especially in heavy equipment," he said.
"From our side, we have increased our marketing. We are visiting China three times this year and this will continue."
Mr al Marzooqi said growth in the number of Chinese companies in the free zone could slow, as many used the UAE as a base for operations in countries such as Yemen, Egypt and Libya. Turmoil in those nations could affect the presence of some companies in the region.
More than two thirds of Jebel Ali Free Zone's total imports of US$31.5 billion (Dh115.7bn) last year came from China - $8.9bn. That figure was more than three times the figure of the country in second place, the US with $2.7bn.
The free zone's total trade with China last year was $9.03bn, with Saudi Arabia second on $5.57bn.
Dubai's total trade last year with China was $12.6bn, up from $11.8bn in 2009, but below 2008's figure of $15.9bn.
Jebel Ali Free Zone has this week been taking part in the Dubai Business Opportunity Forum, organised by the Dubai Department of Tourism and Commerce Marketing in Beijing. Dubai Silicon Oasis and Tecom Investments are also at the event, which ends today.
Delegates said Dubai was well regarded by Chinese businesses.
"We can see more and more Chinese investors going to the world to invest, and Dubai is part of that," said Zhao Yanfeng, a director of information service at the China Council for the Promotion of International Trade.
Huang Gang, the chairman of Sino Business Investment Corporation, said: "The growth in the Chinese economy means there are good opportunities for investors, including in Dubai."