UAE-China economic ties set for a boost

Shaikh Mohammad’s visit will be a key step in forging stronger trade relations between the nations

The state visit of His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to the People’s Republic of China, which starts today, is an opportunity for both sides to boost sustainable trade relations at a time when both countries are looking to their futures. The UAE and China already enjoy substantial trade relations, with China exporting $22 billion (Dh80.91 billion) in 2014 to the UAE, making the country the top source of UAE imports. Bilateral trade stands at nearly $55 billion, making China the UAE’s secondlargest trade partner and trade is expected to surpass $60 billion this year.

While China’s economy has struggled to maintain its stated 7 per cent growth rate over the past year, the country’s leadership sees economic growth as one of its top priorities. Any upturn in China’s still-emerging economy will mean a spike in its energy needs, which the UAE is in a prime position to supply. Oil already makes up 80 per cent of UAE exports to China. Guaranteeing that China remains a top buyer of UAE oil will be a coup de gras.

The UAE should also use this visit to look at how it can contribute to China’s ‘One Belt One Road’ initiative, which is designed to rebuild the Silk Road. The UAE could play a crucial role in helping raise capital to fund railways, highways, ports, airports and other infrastructure projects across Eurasia — areas in which the UAE could also provide leadership and insight.

By ensuring that China-UAE economic relations remain strong, this will provide a significant short-term boost to both economies. The UAE has long been a top destination for Chinese tourists, a boom that has in the past extended to UAE retailers.

Shaikh Mohammad’s visit comes at the best of times. While the rest of the world is still struggling to figure out how to turn their economies around, the UAE and China are already working out the finer details.