BRI broadens connection between China, UAE

Joint efforts strengthen economic ties with Middle East nation

In the span of four decades, the relationship between China and the United Arab Emirates has evolved into a robust partnership, marked by significant advancements in economic ties, trade cooperation and joint efforts under the Belt and Road Initiative.

At the recent Dubai Forum, a key event celebrating the 40th anniversary of the establishment of diplomatic ties between the two countries, Chinese Ambassador to the UAE Zhang Yiming emphasized that China and the Middle East nation "are comprehensive strategic partners, like-minded friends and supportive brothers", adding: "We aim to provide suggestions and contribute wisdom to bolster exchanges and cooperation between China and the UAE in energy, youth, media and other fields in the new context."

Wu Hailong, president of the China Public Diplomacy Association, noted that in the process of realizing national rejuvenation, ensuring people's well-being and laying a solid foundation for sustainable development, China and the UAE have mutually benefited each other. "In the journey of promoting economic globalization, addressing common challenges and building a community of shared future between China and the Arab world, China and the UAE serve as model partners in yielding fruitful results of cooperation in various fields," Wu said.

Mohammad Ali bin Rashed Lootah, president and CEO of Dubai Chambers, highlighted that China is the UAE's largest non-oil trading partner while the UAE is China's preferred investment destination in the Middle East, and stated Dubai Chambers will continuously create new growth points in trade, logistics, real estate, construction and high-tech industries. "Collaboration in areas such as digital transformation and sustainable development, including artificial intelligence, the internet of things, green technology, and healthcare, will benefit the peoples of both countries," he said.

Thriving trade, investment

Economic collaboration between China and the UAE has thrived over the past 40 years as the UAE has emerged as China's largest non-oil trading partner in the Middle East. In 2023, bilateral trade volume between them reached $94.98 billion, with Chinese exports totaling $55.69 billion and imports amounting to $39.29 billion. In the first half of this year, bilateral trade volume totaled $50.11 billion.

China's main exports to the UAE include machinery and electronic items, high-tech products and textiles, while the main imports consist of crude oil and petrochemicals. The UAE is also the fifth-largest source of crude oil imports for China, which imported 41.82 million metric tons in 2023.

At September's 20th anniversary celebration of the UAE-China Chamber of Commerce, or UECN, in Dubai, Zhou Biao, minister counselor of the Chinese Embassy, stated that in recent years, the strategic partnership between China and the UAE has flourished thanks to the active participation and significant contributions of the Chinese enterprises. Currently, over 6,000 Chinese companies have established offices or branches in the UAE, and nearly half of them expanded their businesses in 2023, with 72 percent reporting profits and 45 percent indicating profit growth.

According to a recent UECN report on the development of Chinese enterprises in the UAE (2023-24), major Chinese investments are concentrated in industries such as energy, ports, building materials and construction machinery. The report also underscores that over the past decade, investments have expanded into new areas such as finance, information technology, new energy and e-commerce.

Bilateral framework

In 2018, China and the UAE signed a memorandum of understanding to jointly build the BRI, providing a framework for collaborative infrastructure projects that have reshaped the landscape of bilateral ties in driving sustainable development and connectivity.

One example is the Dubai Hassyan power station, a green and clean energy project on the shores of the Persian Gulf.

Constructed by Harbin Electric International, a subsidiary of Harbin Electric Corp, the project is equipped with the world's first ultra-supercritical power generation unit capable of full-load operation with dual coal and natural gas fuel capability. It consists of four ultra-supercritical units with a total installed capacity of 2,400 megawatts. In October 2023, all four units were put into commercial operation, meeting 20 percent of Dubai's electricity needs and significantly reducing local power costs.

Meanwhile, to ensure the breeding of endangered species of hawksbill turtles during the project's construction period, the builders controlled nighttime lighting to avoid disturbing the turtles' nesting habits and transferred eggs to a safe hatching area. Furthermore, a "silt curtain" spanning over 10 kilometers was set up in the construction area to prevent the spread of stirred-up sediment and pollutants and minimize the environmental risks to marine life in the area. Zhao Guoran, manager of the project, said the power station has made outstanding contributions to Dubai's energy strategy and energy security in the region.

Another flagship project in the energy sector of the two countries is a mega offshore-onshore initiative to develop five offshore independent oil fields and onshore exploration blocks covering 7,800 square kilometers.

Conducted by Al Yasat Petroleum, a joint venture between China National Petroleum Corp and Abu Dhabi National Oil Co, the first phase of the project started production in early 2018. In March of this year, the Belbazem offshore block, part of the project's second phase, began operating. It will eventually achieve a daily production scale of 50,000 barrels of crude oil.

Abdulmunim Al Kindy, executive director at ADNOC upstream directorate, said the start of crude oil production from the Belbazem offshore block is testament to the success of the strategic partnership with CNPC and the robust bilateral energy relationship between the UAE and China. In May, three offshore oil and gas gathering platforms of the project's second phase were completed and put into trial operation.

wangjinhui@chinadaily.com.cn