UAE and China agree to strengthen collaboration in new economy, entrepreneurship, tourism, technology, circular economy, aviation, and logistics transport

During the eighth meeting of the Joint Economic, Trade, and Technical Committee

• E. Bin Touq: The United Arab Emirates (UAE) and China share a long-standing and strategic relationship. This meeting marks a significant milestone in further enhancing the strong economic partnership between the two nations, aiming to reach even higher levels of competitiveness.
• Wang Wentao: The two countries are progressing in their strategic partnership, entering a new stage of development and success. The Committee's meeting marks a significant milestone in enhancing economic relations with the UAE.
• Both the countries have signed a memorandum of understanding (MoU) aimed at nurturing the expansion of the digital economy and cultivating investment opportunities in digital infrastructure, artificial intelligence (AI), and advanced technological applications.
• The two countries have reached a mutual agreement to introduce new programs aimed at assisting SMEs operating within their respective markets. These initiatives will primarily focus on the fields of FinTech, healthcare, advanced solutions, and innovative technologies.
• Strengthening bilateral efforts to further explore potential opportunities for cooperation in the areas of clean energy and smart transportation solutions. This includes the potential establishment of joint projects in these crucial sectors in the upcoming stage.
• Fostering collaboration between the two parties and offering comprehensive assistance to exporters and importers in both countries, aimed at facilitating a greater flow of goods and services and promoting diversification.
• Encouraging the Chinese business community to leverage the benefit of the business environment in the UAE. It is worth noting that the number of companies operating in the UAE has exceeded 788,000 by the end of 2023.
• In the UAE, there are over 14,500 economic licenses issued for Chinese businesses. Additionally, the total number of Chinese tourists exceeded one million during the initial ten months of 2023.
• The UAE’s national airlines operate over 210 monthly flights between the two countries.

Abu Dhabi, February 27, 2024: The governments of the United Arab Emirates (UAE) and the People’s Republic of China reaffirmed their commitment to fostering robust cooperation across various sectors of mutual interest during the eighth meeting of the Joint Economic, Trade, and Technical  Committee. The two sides reached an agreement to strengthen cooperation in key areas such as the new economy, entrepreneurship, technology, tourism, SMEs, energy, renewable energy, agriculture, aviation, logistics transport, infrastructure, and industry, aiming to advance sustainable development in their respective economies.

The Committee's meeting was co-chaired by His Excellency Abdulla Bin Touq Al Marri, Minister of Economy, and His Excellency Wang Wentao, Chinese Minister of Commerce, in the presence of His Excellency Abdulla Ahmed Al Saleh, Undersecretary of the UAE Ministry of Economy, and several officials from both countries.

His Excellency Abdulla Bin Touq Al Marri emphasized long-standing and strategic relationship between the UAE and China, stretching back over four decades. “These ties have continuously developed and advanced, guided by the wise leadership of both nations. Our goal is to enhance and elevate these relations to higher levels of prosperity and progress, in line with the ambitions of our people to promote economic growth and sustainability for both countries,” His Excellency said.

Bin Touq said, “The meeting with the Chinese  side  marks a significant milestone in strengthening the esteemed economic alliance between the two countries, aiming to reach higher levels of competitiveness and broaden collaboration in areas of shared interest, such as the new economy, entrepreneurship, tourism, aviation and logistics transport. Additionally, it seeks to enhance communication channels between the business communities of the UAE and China, alongside establishing frameworks for the advancement of small and medium-sized enterprises in both markets.”

The UAE-China economic partnership is experiencing a notable surge in growth:

His Excellency added: “The economic collaboration between the two nations is experiencing significant growth, evident by the number of economic licenses of Chinese businesses in the UAE, exceeding 14,500 licenses. Additionally, China stands as the UAE’s third largest contributor of foreign direct investment (FDI), with a value of $6.3 billion. Over the past few years, bilateral investment between the two countries has witnessed a surge, reaching a record high of $15 billion in 2022.”

Bin Touq continued: “The tourism industry also plays a vital role in the mutual economic relationship between the UAE and China. In the initial ten months of 2023, the UAE welcomed over a million Chinese tourists, emphasizing their substantial contribution. Furthermore, with approximately 350,000 Chinese residents in the UAE, the cultural exchange is vibrant. Facilitating this interaction, there are currently over 210 monthly flights operated between the two countries by the UAE’s national airlines.”

Encouraging the Chinese business community to leverage the benefits of the UAE's favorable business environment:

His Excellency encouraged the Chinese business community to capitalize on the opportunities and resources available in the UAE’s business environment, which adheres to global best practices. With its dynamic economic policies and regulations, the UAE has emerged as an attractive hub for business and commerce, boasting significant regional and global competitiveness. This conducive environment has cemented the UAE’s position as a leading economic destination, evidenced by its second-highest surge in new foreign investment projects globally during 2023. Furthermore, the number of companies operating in the country exceeded 788,000 by the end of 2023.

Continued UAE support for "Belt and Road" initiative:

His Excellency reaffirmed UAE’s commitment to supporting the "Belt and Road" initiative, as an active partner of the initiative since its launch in 2013, through its development potential, strategic location, and leading economic role in the region. With a substantial investment of $10 billion, the UAE has contributed to a joint Chinese-UAE investment fund aimed at bolstering projects under the initiative in East Africa. His Excellency also thanked the Chinese Government for its efforts in supporting the UAE to join BRICS as an observer.

The comprehensive strategic partnership between the two countries is moving towards a new phase of growth and prosperity:

For his part, His Excellency Wang Wen Tao, Chinese Minister of Commerce, asserted that the comprehensive strategic partnership between the Republic of China and the United Arab Emirates is moving towards a new phase of growth and prosperity. The economic and trade relations between the two countries are experiencing increasing growth and productive results in many activities and sectors of mutual interest. He further noted that this year marks the 40th anniversary of the establishment of diplomatic relations between the two countries, which comes in the light of the forward-looking vision of wise leadership in the two countries.

He added: “The meeting of the Joint Economic Committee marks a new chapter in strengthening economic and trade ties with the UAE and exploring promising investment opportunities in the markets of the two countries in order to serve the economic visions and trends of the two countries.” His Excellency commended the UAE for its backing of the "Belt and Road" initiative, highlighting ongoing collaboration between the two sides to further strength the bilateral relations between the two countries.

Supporting cooperation between the two countries in the digital economy:

The Committee witnessed the signing of a memorandum of understanding (MOU) between the UAE Ministry of Economy and the Ministry of Commerce of China. This MOU is aimed at promoting the growth of the digital economy in the UAE and China, and the development of investment opportunities in the areas of digital infrastructure, artificial intelligence, and advanced technological applications in line with the visions and strategies of these critical areas in the two countries. The memorandum was signed by His Excellency Abdulla Bin Touq Al Marri, Minister of Economy, and His Excellency Wang Wentao, Chinese Minister of Commerce.

Further strengthening of UAE-China cooperation to support the facilitation of the exchange of goods and services:

In detail, the UAE and Chinese sides agreed, during the committee meeting, on the importance of continuing joint efforts to explore further opportunities for economic cooperation in priority sectors at the governmental and private levels and to provide all means of support to exporters and importers in the markets of the two countries. This aims to facilitate the exchange and diversification of goods and services, exploring promising economic opportunities and opening new channels of communication between investors and companies on both sides.

Supporting start-ups and SMEs in UAE and Chinese markets:

The two sides expressed their desire to create new programs to support start-ups in the markets of the two countries in the sectors of fintech, healthcare, advanced solutions, and innovative technologies. These new programs will also encourage SMEs and entrepreneurs to expand in the sectors of the new economy, thereby contributing to increasing the proportion of the enterprise and medium-sized sector’s contribution to the domestic product of the two countries.

Promoting joint action in sustainable sectors:

The two sides discussed promoting joint action in sustainable sectors, particularly clean energy and smart transport solutions, with the possibility of establishing joint ventures and exploring opportunities for cooperation in these critical sectors during the next phase. They also discussed sharing experiences and knowledge in the areas of circular economy, green economy, and waste recycling.

Work on joint tourism events and exhibitions:

The two sides also emphasized the importance of holding joint tourist exhibitions and events during the coming period. These initiatives aim to promote the most prominent tourist and historical attractions in the two countries and support the utilization of the potential and ingredients of the tourism diversity of the UAE and China. The goal is to attract increased tourist delegations from around the world.

Increased Chinese investments in the logistics and infrastructure sectors:

The UAE side expressed its willingness to work with Chinese partners to increase Chinese investments in UAE markets in the logistics and infrastructure sectors.