UAE rolls out the economic red carpet for China
In celebration, a momentous visit of the Chinese President’s, Xi Jinping to the UAE, The Frame is and will be lid up in red from 17 July till the 24th of July.
Symbolic, but important.
The visit carries so many messages with it.
With one of the leading economies of the world, China, moving to invest in the Emirates, the world might see the UAE become the Middle East’s mediator for Chinese President’s, Xi Jinping, ‘One Belt, One Road‘ trade initiative that he announced in 2013.
China moving in
To coincide with the visit, Emaar, one of UAE’s leading construction firms, announced today it will develop the Middle East’s largest Chinatown within the retail district of Dubai Creek Harbor.
The 6 km2 mega-development will be situated 10 minutes away from the Dubai International Airport and the iconic Burj Khalifa.
Emaar’s new China-focused initiatives build on the strong Chinese investment in the UAE as well as the continued growth of Chinese visitors to the country, especially following the visa-on-arrival status granted to Chinese nationals by the UAE in 2016.
From China Town to currency exchange, the moves to tighten cross-border collaboration continues.
Currency exchange platform
As part of joint efforts to foster a closer trading relationship and develop increased investment opportunities, the Central Bank of the UAE and the People’s Bank of China signed a bilateral currency swap agreement and an MOU to establish a Renminbi (RMB) Clearing Centre in the UAE in December 2015.
Swaps through the Center grew consistently, increasing a further 42% in H1 2018, compared to levels recorded at end of 2017.
Growing transfers through the Center reflect the continued overall growth in trade between the two countries.
Another efficient project is China’s investments in the UAE’s energy sector.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of Climate Change and Environment said the UAE has announced its Energy Strategy 2050, which has set an ambitious target of 44% of the overall energy mix from clean resources.
He said UN reports indicate that China is the driving force for the global surge in solar energy investment, leading to solar energy dominating global investment like never before in 2017.
China saw some 53 gigawatts of solar capacity added last year, more than half the global total, and $86.5 billion invested, up 58%.
The UAE and China have joined hands on renewable energy projects that use concentrating solar power (CSP) and photovoltaic panels in Abu Dhabi and Dubai, with a total generation capacity of 1,800 megawatts.
Clean energy to media.
CGTN Arabic, the 24-hour Chinese TV channel with a regional office in Dubai, has a message for the Arab world: ‘See the difference’, according to a report published by CGTN.
The channel aims to “show real China” to the Arab audience and to link both sides politically, economically, culturally, commercially as well as in the humanitarian field.
“We have three goals: Introduce China to the Arab audience, introduce the Chinese viewpoint vis-a-vis international problems, including Arab issues, to Arab viewers, and cover Chinese-Arab joint activities,” the report said.
Viewers of CGTN come from Arab countries including Egypt, Algeria, Morocco, and Iraq.
And last but not least, tech.
China’s tech industry is also advancing
With a thriving technology sector, deepening bilateral ties with China, and recent announcements by the UAE Cabinet to allow 100 percent foreign ownership in certain onshore industries, Dubai is an increasingly attractive trade and investment destination for Chinese investors looking for an opportunity in the city’s rapidly evolving tech industry.
Valued at nearly $8 billion the UAE’s domestic IT market is expected to grow at an average of 5% annually in the period between 2017 and 2022, reports the International Data Corporation (IDC) and presents extensive growth opportunities for Chinese businesses.
As the region’s leading specialized technology and business community, Dubai Internet City (DIC) – whose partners include leading Chinese companies such as Huawei, UnionPay, China Telecom Middle East and Oceanblue Cloud – is at the forefront of this development, according to various reports from Chinese vendors and investors.
Businesses can expect to find increased foreign investment within the country’s evolving tech industry, especially since the recent launch of the China New Era Technology Fund – a $15 billion fund aiming to invest or acquire firms across China and around the world – which would garner interest among businesses and in turn, influence sizeable investments in local projects.