Al Mansouri: UAE-China trade could reach $58b this year

Abu Dhabi: Trade between the UAE and China is expected to increase to $58 billion this year from $53.5 billion in 2017 as the countries strenghthen economic ties, the UAE’s minister of economy said in Abu Dhabi on Friday.

Sultan Bin Saeed Al Mansouri was speaking at the UAE-China Economic Forum organised as part of Chinese President Xi Jinping’s visit to the UAE.

Al Mansouri pointed out that total bilateral trade reached $53.5 billion in 2017, up 15 per cent when compared to the previous year.

“Trade is expected to reach $58 billion in 2018 as the two countries establish stronger ties,” he said.

Investments are also expected to increase, the minister said. There are more than 4,000 Chinese companies operating in the UAE in various sectors, including wholesale, financial, insurance and real estate.

“Borouge, Emirates Global Aluminium, Abu Dhabi National Oil Company, Union National Bank are among [UAE companies] that have invested in China,” he said.

Speaking at the forum, China’s commerce minister Zhong Shan said the UAE was the first Gulf country to establish strategic relations with China.

The Chinese are ready to cooperate with the UAE to promote globalisation, he said.

“The future of cooperation is very broad and both countries are advocates of free economy and multilateralism. We have mutual interest in this and a joint position,” he said.

“China’s openness will only be extended, not closed.”

He encouraged UAE companies to invest in China’s mining, energy, refining and other sectors.

The comments came as Chinese firms invest heavily in the UAE.

Since July 2017, 15 Chinese companies signed lease agreements for land in Khalifa Industrial Zone Abu Dhabi (Kizad) with a total investment of $1 billion.

Cosco Shipping from China will also build and operate a terminal at Khalifa Port apart from creating new facilities in Kizad.

The Office of Chinese Business Council on Friday signed a memorandum of understanding with Abu Dhabi Chamber as well as with Abu Dhabi Investment office to boost economic relations between the two countries.