UAE’s H1 non-oil trade with Belt and Road Initiative partner countries hits $305b

The non-oil trade between the UAE and other partnering countries of China’s ambitious Belt and Road Initiative (BRI) totalled $305 billion in the first half of 2023, accounting for 90 per cent of the UAE's non-oil trade during this period, marking more than 13 per cent growth.

Releasing the data at the GCC-China economy and trade ministerial conference held in Guangzhou, Abdulla bin Touq Al Marri, UAE’s Minister of Economy, said 88 per cent of the UAE's imports come from and 94 per cent of its non-oil exports go to Belt and Road countries.

The trade volume between the UAE and Asia, Africa, and Europe amounted to about $560 billion in 2022, up 20 per cent from 2021. China, India, Saudi Arabia, Iraq, Turkey, Japan, Oman, Kuwait, and Hong Kong are among the top 10 trading partners of the UAE, Al Marri pointed out.

The minister said the UAE is an active partner in the Belt and Road Initiative since its launch in 2013 by capitalizing on the country’s developmental capabilities, strategic location, and leading economic role in the region. The UAE has invested $10 billion in the China-UAE investment fund to support the initiative’s projects in East Africa and has signed 13 MoUs with China in 2018 to invest in various sectors in the UAE.

On the sidelines of the conference, the Minister of Economy held a bilateral meeting with Wang Wentao, Minister of Commerce of the People's Republic of China, in the presence of Hussein bin Ibrahim Al Hammadi, UAE Ambassador to the People's Republic of China, and a number of officials from both sides. The meeting explored ways to strengthen the UAE-China relations in various economic activities and areas, particularly the new economy, energy, manufacturing, renewable energy, health, transport, entrepreneurship, and technology.

Addressing the ministerial conference, Al Marri said the GCC-China relations were established 42 years ago and are witnessing continuous development and fruitful cooperation in all fields today, thanks to the unlimited support from both leaderships.

"The conference marks a new chapter of constructive cooperation between the GCC and the Republic of China. Through this platform, we look forward to further deepening this partnership, supporting sustainable development efforts, and achieving prosperity for our peoples," the minister said, noting that all topics addressed by the meeting are of particular importance in light of the global shifts that may affect the growth of the global economy.

The minister said trade and economic cooperation is the main driver of the growing GCC-China economic partnership. “Building on these strong foundations, we are keen to explore new paths to diversify and expand it to include a wider range of economic activities, including the new economy sectors that hold many promising opportunities and enhance the competitiveness and flexibility of our economies in the face of future challenges.”

Al Marri congratulated China on the 10th anniversary of the Belt and Road Initiative, pointing out that the UAE supports China's efforts in developing this fruitful initiative, especially since it has attracted support from several countries and international organizations.

He said the GCC-China private sector partnership has numerous opportunities and wide prospects for growth in many vital areas. “The UAE sees the Chinese private sector as a key partner as the country currently hosts more than 4,000 Chinese companies operating in key sectors such as trade, logistics services, transport, financial and insurance activities, real estate, energy, and renewable energy.”

The minister called on the Chinese private sector to benefit from the advantages of the UAE’s new economic model and the incentives offered by its business environment. “This was made possible through an array of legislative amendments, most notably to the Commercial Companies Law to allow 100 per cent foreign ownership. In addition, visa and residency systems were revamped, introducing freelance and green residencies to attract talents and startups, simultaneously enhancing green transformation policies and encouraging the private sector to expand in circular economy sectors.”

Al Marri explained that these innovative economic policies have opened up new avenues for enhancing cooperation with the Chinese private sector and establishing more partnerships between the UAE and the GCC countries.

• Business