United Arab Emirates and China explore new ways of collaboration to foster economic growth
The inaugural UAE-China Investment Summit at Abu Dhabi Finance Week celebrates 40 years of bilateral relations between the nations
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The United Arab Emirates (UAE) and China have taken a significant step toward deepening their strategic partnership, focusing on strengthening bilateral ties and exploring new opportunities for collaboration and economic growth.
As both nations continue to expand their influence on the global stage, their shared commitment to enhancing trade, investment and cultural exchange offers promising prospects for mutual prosperity.
With a focus on innovation, sustainable development and cutting-edge technologies, the growing relationship between the countries will create new partnership opportunities across various sectors, from infrastructure and finance to energy and tourism.
With this in mind, ADGM, the international financial centre of the UAE’s capital city, is now hosting the third edition of Abu Dhabi Finance Week (ADFW), which ends on Thursday. The event is focusing on how the city is leveraging the power of capital to ensure long-term prosperity for the region and beyond.
ADFW is highlighting the city’s growing prominence as a major global financial hub and showcasing its potential to shape the future of finance. Bringing together leaders and innovators from around the world, the event underscores Abu Dhabi’s commitment to strengthening international partnerships and exploring new opportunities for collaboration in sectors ranging from investment to sustainable development. It is also a platform to deepen relations with some of the key partners globally.
Today, on the second day of ADFW, the inaugural UAE-China Investment Summit, presented by HSBC, will celebrate 40 years of bilateral cooperation between the two countries and explore topics such as trade, investment opportunities and cultural exchange. The summit will also provide insights into China’s fast-evolving family office sector and serve as a platform for leaders from both nations to explore new ways to promote economic growth.
Attendees will hear from distinguished speakers on topics that deal with the evolving financial landscape and sustainable growth, as well the prospects for greater regional cooperation.
The broad objective is to enhance bilateral trade ties, spark interest in emerging areas of investment and highlight the value of continuing cultural exchanges.
“The UAE and China share a long-standing and deep-rooted economic and cultural partnership,” says Ahmed Jasim Al Zaabi, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Department of Economic Development and ADGM. “In ADGM, we acknowledge the significance of this relationship and recognise our role by strengthening greater financial and investment bilateral flows.”
Strong trade links between the UAE and China can be traced back to the days of the ancient Silk Road, but the extent and character of those ties have become ever more important in recent times.
Two initiatives have contributed greatly to the evolving relationship between the two countries. The first is the outreach created by China’s Belt and Road Initiative – the central government’s plan to link economies into a China-centred trading network – in which the UAE has been an enthusiastic partner. That has led to joint investment in major infrastructure projects, including ports and logistics hubs designed to boost trade and connectivity.
Another is the China-UAE Economic Cooperation Agreement, which was signed in 2018. It has played a key role in driving new business ventures, paving the way to more non-oil trade between the two countries, which had already reached nearly US$81 billion in 2023.
To help develop the relationship, China and UAE hold regular discussions to explore complementary free-trade agreements, with a view to reducing tariffs, enhancing market access and promoting easier bilateral trade. Cultural exchanges have also increased to improve understanding and build closer bonds between people.
International investment in the UAE
On the economic front specifically, ADGM plays a pivotal role in supporting two-way investment. Recognised as one of the world’s fastest growing financial centres, it serves as a gateway for international firms looking to establish a presence in the Middle East.
ADGM provides a robust legal and regulatory framework and ready advice to assist international businesses to set up and later expand their operations in target markets.
According to the latest figures, more than 60 Chinese companies are registered in the ADGM. Notable names include Joy Capital, a venture capital (VC) management firm, which set up a US$100 million VC fund and plans to bring four technology companies to Abu Dhabi. The Hong Kong-based investment group, Arte Capital, has also set up operations in ADGM to fuel its regional expansion plans.
When needed, ADGM may facilitate the flow of Asian companies preparing to list on the Abu Dhabi Securities Exchange. It is dynamically supportive in identifying opportunities for major investors to get into fast-growth sectors such as renewable energy, next-generation technology and fintech, as a way of diversifying their portfolios.
“With Abu Dhabi’s transformative economic growth and China’s pro-business policies, ADGM now serves as a well-established ecosystem, supporting businesses and institutions eager to capitalise on growth corridors in finance and high-potential sectors,” Al Zaabi says.
UAE-China collaboration
Earlier this year, ADGM organised a roadshow with stops in Shanghai and Hong Kong, which drew considerable interest. The primary aim of the mission was to strengthen ties with leading financial institutions in China, while also seeking to promote regulatory awareness and explore areas for future collaboration. The event was extended from three to five days to accommodate the unprecedented demand for bilateral meetings and discussions.
ADGM engaged with more than 50 institutions in the two cities and met key players in the asset management and banking industries plus regulators such as the Hong Kong Monetary Authority.
Delegates met representatives from banks focused on economic development in China, private equity firms, hedge funds and family offices. The topics discussed included their growth plans, opportunities to expand ADGM’s footprint in China and strategies to boost liquidity in capital markets, which all point to an exciting future.
Abu Dhabi and ADGM will continue to explore opportunities to build on the 40 years of collaborations between the two nations to further strengthen their economic relationship.
Al Zaabi says: “Our goal is clear: to create a space for strategic partnerships, where dialogue leads to action and where mutual understanding translates into real economic impact.”