UAE Strengthens Global Position through Strategic Engagement in China’s BRI
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Abu Dhabi, The Gulf Observer: The United Arab Emirates (UAE) has solidified its role as a key player in global economic development, driven by its visionary leadership, strategic location, and favorable business environment. Its participation in major global initiatives, particularly China’s Belt and Road Initiative (BRI), underscores its commitment to international cooperation and economic progress.
The UAE’s active involvement in the BRI, which aims to enhance connectivity between Asia, Europe, and Africa through extensive infrastructure and investment projects, has positioned the country as an influential economic force. The UAE’s contributions will be further highlighted at the 9th BRI summit in the Hong Kong Special Administrative Region, scheduled for September 11-12. The summit, themed “Building a Connected, Innovative, and Green Belt and Road,” reaffirms the UAE’s pivotal role in the success of this global initiative.
Prime Minister Anwar Ibrahim emphasized the UAE’s significant investments in the BRI, including a US$10 billion contribution to the UAE-China Joint Investment Cooperation Fund, supporting projects across East Africa. Additionally, the country signed 13 memorandums of understanding (MoUs) with China in 2018, further strengthening their economic ties.
The UAE’s non-oil trade with BRI-participating countries reached US$305 billion in the first half of 2023, representing 90 percent of its non-oil trade and marking a 13 percent growth compared to the same period in 2022. Furthermore, 88 percent of UAE imports and 94 percent of its non-oil exports are linked to BRI countries, highlighting the importance of these partnerships.
As the UAE and China celebrate 40 years of diplomatic relations, the bond between the two nations remains strong, with China holding the position as the UAE’s top trading partner. Trade volume between the two countries reached US$50.108 billion in the first half of 2024, with UAE exports amounting to US$18.66 billion and imports from China reaching US$31.448 billion. Both nations aim to achieve US$200 billion in trade volume by 2030.
The UAE and China have signed over 148 bilateral agreements and MoUs, contributing to a robust trade relationship that saw non-oil foreign trade between the two nations reach AED296 billion (US$81 billion) in 2023, reflecting a 4.2 percent growth compared to the previous year.
Hong Kong, as a critical partner in the BRI, also plays a vital role in the UAE’s economic strategy. The UAE’s non-oil trade with Hong Kong reached US$12 billion in 2022, while Foreign Direct Investment (FDI) from Hong Kong to the UAE totaled US$2.1 billion. Hong Kong serves as a gateway for UAE companies to access the Chinese market and other parts of Asia, with significant cooperation in banking, finance, and logistics.
The UAE’s strategic involvement in the Belt and Road Initiative, coupled with its strong ties with China and Hong Kong, underscores its unwavering commitment to fostering global economic growth and cooperation. As a regional economic powerhouse, the UAE continues to make substantial contributions to global initiatives, advancing a more connected and prosperous world.
