Jointly Promote UAE-China Cooperation to a New Level – Interview with Sani Zeyoudi, UAE Minister of State for Foreign Trade
Abu Dhabi – In a recent interview with the Economic Daily, Sani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade, highlighted the deepening trade and investment partnership between the United Arab Emirates (UAE) and China. Emphasizing the historical ties and constructive cooperation between the two countries, Zeyoudi underscored the need to elevate this strategic partnership to new heights.
Zeyoudi pointed out that the UAE’s non-oil exports had ranked tenth globally in 2022, with re-exports ranking fifth. The non-oil trade between the UAE and China reached approximately AED 284 billion ($77.3 billion) in 2022, marking a significant increase of 27% compared to the previous year. Furthermore, the trade volume between the two countries witnessed a surge of 63% compared to 2020 and an impressive 54% increase compared to 2019, nearly doubling the figures of 2018. China stands as the UAE’s largest trading partner, accounting for 12.4% of the UAE’s non-oil foreign trade, while 19.5% of the UAE’s imported goods are sourced from China. In fact, if crude oil is excluded, the UAE becomes China’s largest trading country in the Arab region, accounting for 30% of China’s trade with Arab countries. On a global scale, the UAE ranks second among Arab nations in terms of total trade with China, following Saudi Arabia. The UAE stands as the 16th largest importer and the 20th largest exporter to China.
Highlighting the current trade relationship, Zeyoudi revealed that in the first half of 2023, China remained the UAE’s largest trading partner, with an 11.3% share. During this period, non-oil trade between the two countries reached US$38.2 billion, marking a 9.6% increase compared to the same period in the previous year.
In addition to the booming non-oil trade, Zeyoudi also highlighted the recovery of foreign direct investment (FDI) flows between the UAE and China. As of the end of 2020, China’s total investment in the UAE exceeded AED 23.3 billion (USD 6.3 billion), accounting for 5% of the total FDI received by the UAE. Chinese investments are primarily concentrated in commercial activities (52%), followed by finance, insurance, construction, and real estate activities (32%). Meanwhile, the UAE’s total investment in China surpassed 2.2 billion dirhams ($600 million).
Zeyoudi expressed the UAE’s commitment to solidifying its position as a major trade hub for China’s trade with the Middle East and Africa. With the UAE’s re-export business witnessing significant growth in recent years, the country has become a crucial gateway for Chinese goods to enter the Middle East and African markets. Furthermore, Zeyoudi highlighted the common vision and key investments by both countries in knowledge, innovation, technology, and new economic fields, which serve as crucial factors in the comprehensive strategic partnership between the UAE and China. Zeyoudi expressed hope for continued collaboration to advance the sustainable partnership and fruitful cooperation between the two nations to new levels.