UAE looking to strengthen ties with China
Leaders from the UAE and China met recently to explore ways to strengthen bilateral ties in various fields including investment, energy, industry, culture and education. The meeting came on the second day of a state visit to China led by Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.
The minister held talks with the Commerce Minister of the People’s Republic of China, Wang Wentao, over high-growth sectors, discussing prospects for stimulating expansion in bilateral trade and investment, in addition to identifying new sectors for investment.
Twelve agreements and memorandums of understanding were signed and exchanged between Emirati and Chinese companies and entities in a wide range of priority areas including aluminium, communications, iron and steel, financial services, aviation, free zones and other industries.
Speaking at the UAE-China Business and Investment Forum, the focus of the state visit, UAE’s Mohamed Hassan Alsuwaidi, Minister of Investment, highlighted China’s growing investments in the UAE, which rose 16% in 2023 to $1.3 billion, accounting for 60% of the total value of China’s investments in Arab countries.
More than 70 participants participated in the forum from the Emirati side, including senior government officials from federal and local entities, in addition to representatives of a number of major Emirati companies operating in various sectors, including logistics services, industry, energy, technology, health care, environment, agriculture, food security and financial services.
Discussions during the forum included exploring promising opportunities in sectors expected to achieve significant growth, with a particular focus on information and communications technology, manufacturing, financial services, logistics, and energy.
The forum was held as part of the agenda of events organised to mark the 40th anniversary of the establishment of diplomatic relations between China and the UAE.
The UAE Ambassador to the People’s Republic of China Hussain bin Ibrahim Al Hammadi, said: “We are entering a new era of bilateral relations. Sheikh Mohamed bin Zayed Al Nahyan’s visit to China holds historic significance, presenting opportunities to further advance economic ties, support initiatives like the Belt and Road, and enhance cooperation in key sectors such as renewable energy and infrastructure.”
Al Hammadi also highlighted the importance of educational and cultural exchanges, strengthening communication and collaboration between the two nations.
IMF predicts 4% growth in UAE GDP
The UAE’s gross domestic product (GDP) will grow 4% in 2024, higher than earlier estimates, as the Gulf state is experiencing robust growth, the International Monetary Fund (IMF) has said.
“Economic growth in the UAE is broad-based, led by robust activity in the tourism, construction, manufacturing, and financial services sectors,” the IMF said in a statement.
The IMF said the strong foreign demand for real estate, increased bilateral and multilateral ties and the country’s safe haven status continue to drive rapid growth in housing prices and an increase in rents while adding to ample domestic liquidity.
Overall economic growth would likely be further supported by higher hydrocarbon GDP growth this year, in part driven by higher crude oil production from the UAE. Average inflation is expected to remain contained close to 2%.
Similarly, fiscal and external surpluses are expected to remain strong on the back of relatively high oil prices. “The general government surplus is projected to be around 5% of GDP in 2024 and public debt is on track to decline further towards 30% of GDP,” the IMF statement said.
The UAE’s current account surplus is projected at around 9% of GDP in 2024.
The Washington-based organisation had projected in April that the country’s economy would grow by 3.5% this year, according to its latest Regional Economic Outlook report released in April.
However, it said that the outlook is subject to uncertainty and external risks, including geopolitical tensions, although the UAE’s large public financial buffers help mitigate risks while accelerating public and private investment and structural reforms.
