Ironically, while the recent military clashes in the Gulf have rattled markets and concerned wealth managers, the Asian economic giant and Middle East jurisdiction have signed an investment partnership pact.
The governments of the United Arab Emirates and China have agreed
to promote bilateral investment flows – a sign that the
jurisdictions are continuing to interact against a backdrop
of geopolitical strains.
As announced yesterday, the UAE and China said they have signed a
memorandum of understanding. The signing was witnessed by His
Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown
Prince of Abu Dhabi and H E Li Qiang, Premier of the State
Council of the People”s Republic of China, a statement from the
UAE’s Ministry of Investment said yesterday.
The MoU was signed by H E Liu Sushe, vice-chairman of the
National Development and Reform Commission, and H E Mohamed
Hassan Alsuwaidi, UAE Minister of Investment (see main picture).
Following the MoU agreement, the jurisdictions
will look at building joint investment platforms, funds and
other vehicles to support investments, including in third
markets. It also supports creating a China-focused investment
platform by relevant UAE investment entities, subject to
applicable approvals and prevailing market conditions.
“This MoU marks a significant milestone in the UAE’s strategic
partnership with the People’s Republic of China – our principal
trading partner and the fourth-largest source of FDI [foreign
direct investment] into the UAE, representing 6.3 per cent of
total inward FDI stock as of 2024,” H E Mohamed Hassan
Alsuwaidi, UAE Minister of Investment, stated. “More than 16,000
Chinese companies already operate in the UAE – a testament to our
strong business ties and the continued confidence they place in
the UAE as a platform for regional and global growth.”