Exclusive | Chinese firms forge ties with UAE as Gulf nation acts as ‘superconnector’ in global trade

Chinese companies are increasingly seeking partnerships in the United Arab Emirates (UAE) as the Gulf nation acts as a “superconnector”, bridging the East and West and amid a shift in trade beyond the traditional sectors, according to a top banker.

Business has expanded to innovative industries like hydrogen, ammonia, carbon capture, electric vehicles, solar energy and consumer tech because of China’s substantial investment in research and development, which is driving advances in these areas, Mohamed Al Marzooqi, CEO of HSBC UAE, said in an exclusive interview during Abu Dhabi Finance Week last week.

“Historically, the relationship with China was very limited, but what we are seeing today is a change from that trend,” he said, adding that Chinese companies are involved in many significant infrastructure projects in the UAE.

Abu Dhabi Global Market (ADGM), the UAE capital’s international financial centre, signed an agreement to boost cooperation with the Beijing Financial Street Service Bureau during the UAE-China Investment Summit held as part of Abu Dhabi Finance Week. The bureau is responsible for the promotion and development of the Beijing Financial Street area as a national financial management centre.

In the renewable space alone, Chinese companies are involved in almost 50 per cent of the projects currently in progress in the UAE, according to Al Marzooqi. Chinese solar photovoltaic manufacturers are doubling down on the UAE and the Middle East to cater to local demand and serve as gateways to US, European and other markets.