UAE and China bilateral trade rises 7% in first nine months of 2024 to $74.6 billion

The bilateral trade between the UAE and China in the first nine months of this year rose 7.2 per cent to reach $74.6 billion amid the strengthening of economic ties between the two countries. “The UAE now is China's largest non-oil trading partner and has become China's second-largest trading partner in the region, the largest investment destination and the largest source of foreign investment,” Zhang Yiming, China’s ambassador to the UAE, told the Abu Dhabi Finance Week on Tuesday. The total investment between the two countries is also rising as they focus on boosting co-operation in different sectors. “We are also strengthening the direct investment in UAE. So last month, the $2 billion sovereign bond issued by the Ministry of Finance China was listed and traded on Nasdaq Dubai, marking another important step in the financial investment co-operation between China and the UAE,” Mr Yiming said. China’s ties with the UAE have been increasing with new trade and investment agreements between the two as the Arab world's second-largest economy continued to grow with diversification efforts. Last month, the UAE's Hodler Investments linked up with GCL Energy Investment, a subsidiary of the leading Chinese energy provider Golden Concord Group, on an energy infrastructure project in Ethiopia. This initiative aims to use flared gas and other wasted energy to power data centres that specialise in artificial intelligence and blockchain applications. Astra Tech, the Dubai-based technology-focused investment firm backed by Abu Dhabi’s G42 , has also joined hands with the FinTech unit of gaming company Tencent Holdings to unveil cross-border remittances between UAE users of the Middle East internet calling platform Botim and messaging and payment app Weixin/WeChat in China. “The two sides have co-operated in the fields for oil and gas development, port operations, clean energy, joint investment funds, local currency swaps, financial infrastructures and promoted the implementation of a number of projects with great significance and effects.” The co-operation is growing to new sectors including e-commerce and data centres, he added. Last month, Abu Dhabi clean energy company Masdar and China’s Silk Road Fund signed an initial agreement to jointly invest in renewable energy projects in Belt and Road Initiative countries, mainly in developing countries. The Silk Road Fund plans to invest up to 20 billion yuan ($2.76 billion) in projects alongside Masdar. The BRI, which was launched by China in 2013, aims to connect several countries in Asia, Europe and Africa through a network of infrastructure and trade-related projects. It encompasses about 65 nations and represents 30 per cent of the world's gross domestic product. Meanwhile, top executives highlighted new investment opportunities between the two countries amid the bolstering of ties. Joy Capital, a $2 billion China-based VC fund management firm, which set up a venture capital fund manager at Abu Dhabi Global Market last year, is bullish about opportunities in the region. “Something about four years ago, we began to look eastward to the Middle East and evaluated the regional market. And for all the good reasons, we decided to set up our fund in Abu Dhabi. It's the best gateway to the Middle East and Africa market,” said Leenong Li, founder of Joy Global. It is looking to invest in sectors including mobility technologies and “innovative consumptions, we think, are highly relevant to this local market”, Mr Li said. Abu Dhabi's Mubadala Investment Company, which opened its Beijing office last year, is looking at buyout opportunities across health care, consumer, industrial and business services, “which is aligned with our global mandate”, Grant Campbell, director of Mubadala, said during a panel discussion. “As we look forward, we're still finding quality, high-quality companies where we can have a significant impact and leverage not only our global network but also our history of building businesses and working with partners to create value,” he said. In August, Mubadala, in partnership with CBC Group, acquired 100 per cent ownership in the carve-out of UCB Pharma’s mature business in China. UCB, a global biopharmaceutical company headquartered in Belgium, occupies a market-leading position in the strong and expanding immunology, neurology and rare disease market in China. Last year Mubadala also co-led a $300 million series B funding round for China’s industrial supply chain technology company, JD Industrials, alongside global investment manager 42XFund.

UAE and China bilateral trade rises 7% in first nine months of 2024 to $74.6 billion

The two countries continue to strengthen trade and investment ties