UAE, China sign strategic agreements to enhance trade and boost Belt and Road Initiative

Image credit: WAM

The UAE President Sheikh Mohamed bin Zayed Al Nahyan and Chinese President Xi Jinping oversaw the signing of multiple agreements and memoranda of understanding (MoUs) aimed at strengthening cooperation between the two countries in various sectors, on Thursday.

The signing ceremony took place during Sheikh Mohamed’s two-day state visit to China.

The agreements span several key areas, including investments, the Belt and Road Initiative (BRI), industry and technology, and tourism.

This event underscored the UAE’s focus towards enhancing its strategic engagement with China, which is its largest trading partner for non-oil trade activities.

UAE-China trade

President Sheikh Mohamed emphasised the UAE’s strategic priority to deepen its relationship with China, describing China as a long-term, reliable partner.

The agreements signed reflect a mutual commitment to advancing cooperation across various domains, including economy, trade, energy, science, technology, education, and culture.

I was pleased to meet Chinese President Xi Jinping in Beijing today to discuss ways to build upon the Comprehensive Strategic Partnership between our two nations. As we celebrate 40 years of diplomatic relations between the UAE and China, our enduring partnership continues to… pic.twitter.com/mNpFou3IrM

— محمد بن زايد (@MohamedBinZayed) May 30, 2024

The two nations’ trade and investment relationship spans various sectors, including crude oil, petrochemicals, and artificial intelligence.

In 2022, non-oil bilateral trade between the UAE and China reached approximately Dh264.2bn which grew to Dhs296bn in 2023, as per UAE government data.

Chinese investments in the UAE grew by more than 16 percent annually last year to $1.3bn. Meanwhile, UAE investments in China surged by 120 percent, accounting for 90 per cent of all Arab investments in China.

Key agreements and MoUs signed:

• Belt and Road Initiative: MoU on Joint Formulation of the Cooperation Plan.
• Investment: Establishing the China-UAE High-Level Investment Cooperation Committee.
• Media: MoU on Cooperation between the UAE Media Council and the National Radio and Television Administration of China, and another between the UAE National Media Office and China Media Group.
• Nuclear Energy: China-UAE Intergovernmental Cooperation Agreement on the Peaceful Uses of Nuclear Energy.
• Maritime: MoU on the Recognition of Seafarers’ Certificates of Competence.
• Science and Technology: Cooperation Agreement in this field, and an MoU on Cooperation in Industries and Technologies.
• Intellectual Property: MoU for Intellectual Property Cooperation.
• Tourism: MoU on Cooperation in the Tourism Sector.
• Green Development: Promoting Investment Cooperation in this area.
• Culture and Education: MoUs on Health Cooperation, Cultural Sector Cooperation, Higher Education, and Joint Chinese Language Education.
• Statistics: MoU on Statistical Cooperation between the Federal Competitiveness and Statistics Centre of the UAE and the National Bureau of Statistics of China.

Strategic Collaboration

The UAE and China are also collaborating on the BRI, a significant global infrastructure project initiated by President Xi Jinping in 2013.

The UAE’s active participation in the BRI includes substantial investments and infrastructure development, reinforcing its role as a critical logistics hub.

In the first half of 2023, the UAE’s non-oil trade with BRI countries amounted to $305bn, highlighting the initiative’s economic impact.

Both nations are also working together in the financial sector, evidenced by the renewal of the UAE Central Bank’s currency swap agreement with the People’s Bank of China and the significant investments by Abu Dhabi’s Mubadala Investment Company in Chinese technology ventures.

Future prospects

The UAE’s active role in global initiatives, such as the BRI and its substantial investments in China, signal its strategic vision to foster international cooperation and sustainable development.

The ceremony concluded with both leaders expressing optimism about the strengthened bilateral ties and the potential for future collaborative endeavors.

The UAE delegation included prominent officials such as Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs; Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure; and Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, who signed the agreements alongside their Chinese counterparts.

Read: UAE President Sheikh Mohamed speaks at China-Arab Forum