Abu Dhabi: The UAE’s trade with China shas grown substantially since His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, visited China in 2015.

The value of trade between the UAE and China in 2017 grew 15.1 per cent over 2016, according to the UAE Ministry of Economy.

During the visit and the signing of the strategic agreement between the two countries, it was revealed that the UAE also plays a vital role as a distribution point for 60 per cent of Chinese exports to the region, according to statement released by WAM on Saturday.

The sixth session of the UAE-China Joint Economic Committee, which was held last September in Beijing, saw the two sides reporting their achievements in the development of cooperative frameworks in several vital areas of common interest.

In December 2015, Mubadala Development Company and China Development Bank Capital (CDBC) launched a global investment fund that will have the flexibility to look at a range of alternative investment strategies, asset classes and special opportunities, including greenfield investment projects, with the aim of building a balanced portfolio, as well as ensuring sustainable returns and principal capital protection.

Highlighting the importance of this partnership and its potential for growth, it was announced that non-oil trade between the two countries reached $46.3 billion (Dh170.1 billion) in 2016, making China the UAE’s second-largest trading partner, while the UAE is one of China’s top trade allies in the Middle East region.

The two sides agreed to continue their joint efforts and take all the necessary measures to strengthen cooperation in the coming years by focusing on 13 vital sectors — trade and economic ties, investment, industry, energy and renewable energy, small and medium-sized enterprises (SMEs), innovative industries, health, education, tourism, infrastructure, financial services, standards and measures, space and aviation, and local cooperation.

Expo participation

Having confirmed its participation in Expo 2020 Dubai through a 4,636 square metre pavilion that will be built at an estimated cost of Dh367 million, China will utilise the internationally renowned event to showcase its latest technology as well as its ‘One Belt, One Road’ initiative.

The Industrial and Commercial Bank of China, one of the largest financial establishments in the world with estimated assets of $2.3 trillion, has already set its eyes on expanding in the Middle East, and on contributing to relations with the UAE, given the latter’s major role in international affairs and its fast-growing business sector, thus allowing for a significant increase in trade between the two countries and cooperation among their business and financial sectors.

Last year, Abu Dhabi Ports signed a 50-year Mustaha (usufruct) agreement with the Jiangsu Provincial Overseas Cooperation and Investment Company (Jocic) in the free trade zone of Khalifa Industrial Zone of Abu Dhabi (Kizad).

Jocic signed lease contracts worth Dh1.1 billion in total with five Chinese firms — Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development Group Co Ltd, Xuzhou Jianghe Wood Co, Jiangsu Jinzi Environmental Technology Co and Guangzheng Group.

The deal is expected to create 1,400 jobs while strengthening the region’s role in the Silk Road initiative.