UAE-China trade relationship is more than just oil

Contrary to popular belief that the relationship is an oil-based economic partnership, the United Arab Emirates and China have been in the news recently for their partnerships in various industries, especially in high-tech.

The UAE will fly its Rashid 2 rover on China’s Chang’e 7 lunar mission in 2026, according to a new deal announced in September. In Dubai, a Chinese automaker tested its flying car.

The UAE and China have successfully piloted a cross-border CBDC (Central Bank Digital Currency) platform in partnership with Thailand and the Hong Kong Special Administrative Region of China.

The UAE Consul General in Shanghai, Muhannad Alnaqbi, who arrived in October 2021, was not surprised. The diplomat, who had never visited Shanghai or China before, now has a first-hand understanding of Shanghai’s administration and business environment, and is convinced that “there is huge potential to expand cooperation in many industries.”

These collaborations are the product of years of mutual respect and friendship, with non-oil trade between the two countries growing by 78.5 percent, from $34 billion in 2012 to more than $60 billion in 2021.

In a recent interview with Shanghai Daily, the Consul General revealed that six UAE companies will participate in the upcoming fifth China International Import Expo, which will be held in Shanghai from November 5 to 10. Dubai-based multinational logistics group DP World was also on the list, which opened its China headquarters in Shanghai earlier this month.

The UAE envoy spoke about the development of bilateral relations, prospects for bilateral cooperation and his personal experience in Shanghai.

Ti Gong

Q: Recent headlines have highlighted UAE-China ties in areas that may surprise some, especially in tech. Where do you see opportunities for future cooperation?

A: The UAE is committed to economic diversification and the development of a new future-oriented economy to reduce dependence on oil.

We welcome Chinese investment in new energy, aerospace, telecommunications, financial services, e-commerce, tourism, technology, infrastructure and other fields.

Q: Are there ongoing projects in Shanghai or neighboring provinces in your jurisdiction?

A: The UAE has many free trade zones, including the well-known Khalifa Industrial Zone in Abu Dhabi, which is a demonstration zone for China-UAE capacity cooperation.

Jiangsu Foreign Cooperation and Investment Corporation is responsible for the investment, development and management of the development zone. Take this opportunity to thank the provincial government and all builders.

The Mohammed bin Rashid Al Maktoum solar park contracted with Shanghai Electric is located in the south of Dubai. It is one of the largest solar PV facilities in the world and one of the most advanced solar PV facilities in the UAE, with countless solar panels.

Dubai Water and Electricity Authority Website / Ti Gong

Shanghai Electric is building one of the world’s largest solar photovoltaic facilities at the Mohammed bin Rashid Al Maktoum Solar Park in southern Dubai.

Q: What is your outlook on possible further cooperation with China? Is Shanghai’s business environment good?

A: I must say that I value the growth of the link between China and the UAE very much. Since the establishment of diplomatic relations between the UAE and China in 1984, under the strong leadership of the two countries, the relationship between the two countries has reached an all-time high.

In 2018, under the strategic leadership of President Mohamed bin Zayed Al Nahyan and President Xi Jinping, the two countries have become comprehensive strategic partners and have cooperated in various fields such as economy, trade, culture, politics and diplomacy.

Currently, Arab-China relations are at a new stage. In 2021, we achieved a trade volume of US$72.36 billion, an extraordinary achievement that represents the great potential for future cooperation between the two friendly countries. This increase was a 46.6% year-on-year increase.

The UAE is the economic, trade and financial center of the Middle East and is closely linked to the rest of the world, while Shanghai is China’s global financial center and a driving force for the development of the Yangtze River Delta.

We all have a responsibility to promote regional prosperity, so we can jointly advance projects such as energy sector development and youth talent training in the future.

Q: Has bilateral trade increased this year? Which industries do Emirati companies in Shanghai mainly serve?

A: China is the UAE’s largest trading partner. In the first six months of 2022, the bilateral trade volume reached US$46.03 billion, a year-on-year increase of 46.4%.

In Shanghai, we have about 20 Emirati companies in various industries including aerospace, petrochemicals, financial services, aluminum, tourism, hotels, investment, ports, free trade zones and real estate.

Ti Gong

Abu Dhabi Corniche skyline

Q: Has the recent cooperation between the UAE and China in the fight against the pandemic, including the UAE’s first COVID-19 vaccine production line, succeeded in containing the pandemic there?

A: The UAE has joined hands with China to fight the epidemic, setting a model for global partnership. The two countries signed an agreement for the joint production of vaccines, announced a strategic human partnership and launched a joint project in the UAE for a COVID-19 vaccine production line (Life Sciences and Vaccine Manufacturing in the UAE).

It has benefited not only our two countries, but also the people of other countries and regions. It aims to end the pandemic.

Q: You were in Shanghai during the recovery of the new crown epidemic at the beginning of this year. How do you think the city handled it?

A: Since the resurgence of the COVID-19 outbreak in early 2022, Shanghai has shown incredible resilience and perseverance. In the fight against the epidemic, the Chinese government, especially the Shanghai government, put people first and gave full play to its human resources and economic strength.

The historical and cultural city of Shanghai has proven its huge economic potential, excellent and reliable talent pool and various measures. It reflects the city’s strong risk management and defense capabilities. In order to meet the basic living materials and medical needs of the masses, the city has implemented a risk management system.

As a financial center, Shanghai has a comprehensive financial risk management system covering various services. This includes the Shanghai Gold Exchange’s Shenzhen operations center, which ensured the exchange’s smooth operation during the height of the pandemic.

After the city resumed normal production and life, the municipal government announced the deployment of accelerating the revitalization of the economy, and introduced policies and measures to support enterprises, including retail, tourism, aviation and transportation. It also reduced or exempted some businesses and self-employed individuals from taxes.

China’s approach to fighting the outbreak is in line with the UAE’s strategy, with a focus on technological solutions. The UAE has announced 100% vaccination of the target population to increase their immunity to the virus, we can reduce the number of infections and control the pandemic.

Since the COVID-19 outbreak, the UAE and China have pledged to work with the global community to overcome obstacles.

The UAE was one of the first to provide humanitarian aid to other countries to mitigate the impact of the pandemic. The UAE has donated 2,000 tonnes of medical supplies to more than 135 countries, established fully equipped on-site clinics in many of them to assist them, and leveraged our highly developed logistics sector to deliver COVID vaccines quickly around the world.

Ti Gong

Al Noor Mosque in Sharjah