The UAE Cabinet last week took the bold decision to grant instant visas for Chinese visitors on their arrival to the UAE. Meanwhile, Saudi Arabia signed more than 11 agreements with China related to various investment fields.

These two events reflect the Gulf states’ profound understanding of the importance of restructuring their international relations in line with emerging developments and the growing power of some economies and the decline of others.

Combining that with the sizeable volume of Kuwait and Qatar investments and the Bahraini and Omani approaches push in their relations with China, the GCC-China relationship should see a qualitative leap in coming years. China represents the GCC’s premier trading partner and the largest importer of petroleum products from the Gulf, and these are steadily growing.

For instance, the volume of trade between the UAE and China shot up from $55 billion (Dh202 billion) two years ago to $60 billion this year and expected to reach $80 billion in 2018, according to official forecasts As for the UAE Cabinet decision, it would lead to many significant outcomes, especially the stimulation of non-oil economic sectors since China has sizeable investment capacities and tends to diversify its global assets.

Huge investments

It should be noted that China is among the biggest real estate investors in Europe, especially in London, and also the biggest natural resources and mining investor in Africa. Therefore, the recent decision, which will facilitate easier travel procedures for Chinese visitors, is expected to attract huge investments in various sectors, including property, services and infrastructure and stimulate the aviation and tourism sectors since many Chinese cities are now having direct airlines with Abu Dhabi and Dubai.

Furthermore, the UAE has gained a good reputation among Chinese tourists and tourist institutions. (This goes back to two years ago when a Chinese company rewarded 16,000 employees by organising a trip to the UAE).

Obviously, the Cabinet decision is not an ordinary one, as it will lead to many significant developments in both countries’ relations. In addition to granting instant visas, the decision will result benefiting the business sector in the UAE. It will also benefit Chinese investors and stimulate the UAE-China transportation sector.

However, there is no justifiable reason to fear for the UAE’s demographics. The to-be-given-at-airport instant visas do not grant Chinese victors the freedom to stay or work, but only entitled for a limited period.

Chinese economy

This type of visa is similar to that granted to Europeans visitors and did not spark such concerns. Notwithstanding, we should keep in our heads that the Chinese living standards have witnessed a serious improvement to the extent that their financial capacities have made them coveted visitors for any tourist destination.

The Chinese economy will become the largest in the world and linked to many strategic and security implications. All countries should be prepared for this imminent transformation and forge allies that can cope with this change.

In this respect, the Gulf states can, through the General Secretariat, set the tune for signing free trade agreements with China and India. The two represent the UAE’s largest trade partners and make up about 40 per cent of the Gulf’s petrochemical exports. And this sets the stage for long-term relations that represent — and protect — both sides’ interests.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.