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Author | Lian Meizhen Editor | Liu Jingfeng

Source | Xiaguang Society

Dubai is undergoing profound changes. This city of the future, which is forging a desert miracle, is increasingly becoming a bridgehead and outpost for Chinese companies to expand their global presence.

In January 2023, Dubai announced the Dubai Economic Agenda D33 ("D33 Agenda" for short). This ambitious plan will double the size of Dubai's economy in the next decade through 100 landmark projects, making Dubai an international city ranked among the top three in economic strength in the world and one of the top four financial centers in the world.

This grand blueprint for economic development has created broad opportunities and unlimited business opportunities for Chinese companies to expand into Dubai.

According to data from the Dubai Chamber, as of mid-2024, approximately 5,400 Chinese companies have registered as active members of the Dubai Chamber; among them, the number of Chinese members of the Dubai Chamber increased by 41% from 2022 to 2023; and from January to May 2024, 626 new Chinese companies have joined the Dubai Chamber.

These Chinese corporate members have diverse and wide-ranging business scope, covering trade, services, real estate, leasing, business services, transportation, warehousing, communications and many other fields.

Dubai, which is accelerating towards a new era of economic diversification, is establishing long-term partnerships with Chinese investors and companies. On August 21, the Dubai Chamber of Commerce hosted the Dubai Business Forum - China in Beijing with the theme of "China, Dubai and the Global Market: Ignite International Trade and Investment Opportunities". The event brought together business leaders from China and Dubai. Focusing on the Dubai Economic Agenda D33, the two sides discussed business opportunities and development prospects in the fields of e-commerce, AI, green technology and health care, and looked forward to new momentum for global trade and investment.

The Beijing Forum is the first stop of this international business event in the UAE. On the occasion of the 40th anniversary of the establishment of diplomatic relations between China and the UAE, this event is also intended to continue the successful chapter of bilateral economic cooperation between China and the UAE over the past 40 years. At the same time, China is also the only country in the world with three Dubai International Chamber of Commerce offices - located in Shanghai, Shenzhen and Hong Kong, reflecting the increasingly close ties between China and the UAE.

In this regard, His Excellency Mohammed Ali bin Rashid Al Lootah, President and CEO of Dubai Chamber, stressed that China has always been a market of great strategic significance to Dubai, which is why Beijing was chosen as the first stop of the Dubai Business Forum International Tour.“The comprehensive strategic partnership between the UAE and China has accelerated cooperation in key areas of mutual interest. We are confident that this strong momentum will continue as bilateral economic ties strengthen and trade and investment deepen.”

His Excellency Mohammed Ali bin Rashid Al Lootah, President and CEO of Dubai Chamber, delivered the opening speech

Chinese companies flock to Dubai

When you are in Dubai, you will be amazed by the various unique buildings:

The 828-meter Burj Khalifa towers into the sky and is the world's tallest building and man-made structure;

The world's only seven-star hotel, the Burj Al Arab, is built on an artificial island in the Arabian Gulf 280 meters away from the beach, and is connected to the land only by a winding road.

The Palm Island in Dubai, which cost $14 billion to build, is known as the "Eighth Wonder of the World". The island is lined with resort hotels.

It is hard to imagine that half a century ago, this land was a desert dominated by the pearl trade; it was not until the 1970s, with the increase in oil revenues, that it won a place in the global political and economic landscape.

But Dubai is undoubtedly the most forward-looking and innovative city in the Middle East.As early as the 1950s, Dubai, under the leadership of the then Sheikh Rashid, gradually transformed into an international trade center, thus avoiding the "resource curse" dilemma that Middle Eastern oil producers usually fall into.

Dubai has unique advantages in developing international trade: it is located in the central region of the Arabian Gulf, at the crossroads of Europe, Asia and Africa. This geographical location makes it a natural trade and commercial center between the Eastern and Western Hemispheres.

To this end, Dubai established Rashid Port, Jebel Ali Port and Jebel Ali Free Zone in the 1970s and 1980s. Among them, Jebel Ali Free Zone has attracted more than 7,500 companies in 2020, including nearly 100 Fortune 500 companies. As a result, the free zone has become one of the world's largest free zones specializing in industry, trade and logistics.

Since the 1980s, Chinese people have come to Dubai, a global trade hub, to engage in foreign trade, cultural tourism and other industries. In 2004, Dubai Dragon City, a model of Sino-Arab cooperation, was officially opened. It has now become China's largest overseas commodity trading center and China's largest commodity distribution center and sales wholesale center in the entire Middle East.

In recent years, Dubai's pace of self-innovation has continued to accelerate.In line with the D33 agenda, over the next decade Dubai will promote sustainable, diversified and efficient economic development, making Dubai the most attractive global business hub and an international hub for multinational corporations and local SMEs.

The D33 Agenda has created tremendous development opportunities and exploration prospects for Chinese companies to go global in Dubai. As His Excellency Mohammed Ali bin Rashid Al Lootah, President and CEO of Dubai Chamber of Commerce, said: "Promoting trade and investment is at the core of achieving the D33 Agenda, so we are actively strengthening our close ties with the Chinese business community. With the opportunities created by the D33 Agenda, we aim to help Chinese companies achieve global expansion."

Guo Huaigang, Director of CCPIT Beijing, and His Excellency Mohammed Ali bin Rashid Al Lootah

In the field of digital economy, Chinese e-commerce unicorn giant SHEIN, international express logistics company Jitu, and global social media platform TikTok have all set up operations in Dubai; Huawei Cloud has played an important role in building Dubai's smart city, supporting Dubai's digital transformation by providing advanced ICT infrastructure and solutions.

In the cutting-edge field of artificial intelligence, the Dubai International Chamber of Commerce has successfully teamed up with Tuya Smart, a world-leading IoT service provider, to enter Dubai.To support the UAE's 2050 Clean Energy Strategy, Tuya Smart focuses on IoT technology to promote environmental, social and governance (ESG) development in the Middle East. Tuya leverages its IoT technology expertise to help local businesses and consumers embrace more sustainable and environmentally responsible practical solutions.

In the healthcare sector, health screening technology expert United Imaging Healthcare has established its Middle East regional headquarters in Dubai, which serves as an important trade hub between Europe, Asia and Africa.So far, the innovative products of this Shanghai-based company have entered top medical institutions in the Middle East, including the King Hussein Cancer Center, Morocco's high-end private hospital Health Garden Clinic, and King Abdul Aziz University's IONE Nuclear Medicine and Oncology Center.

In the field of new energy, many Chinese new energy vehicle companies choose to use the UAE as an entry point to explore the Middle East market.First of all, this is because the UAE currently does not levy income tax on individuals, and there are many preferential policies for exemption and deduction of the 5% tariff on imported goods, and the tax advantage is very obvious. An obvious example is that China's new energy vehicles and car companies are rapidly entering the market. Data shows that between 2022 and 2028, the demand for electric vehicles in the UAE will grow at an annual rate of 30%. In October 2022, Hongqi New Energy Vehicle became the first new energy vehicle brand to join the Dubai police car team; at the end of 2022, Geely's new energy commercial vehicle brand Yuancheng Automobile signed an order for 1,000 new energy commercial vehicles with a UAE company.

These cases and data all show that Dubai, with its unique location advantages, good and orderly marketing environment, and favorable tax system, is providing companies with a convenient channel to enter the Middle East and North African markets and expand their global presence.

According to statistics from the Dubai Chamber of Commerce, there were 362 new corporate members in the first quarter of this year alone, which directly reflects that Chinese companies are flocking to Dubai.

D33 Agenda: The Ambition of “Rebuilding Dubai”

The ambitious Dubai Economic Agenda D33 is transforming Dubai into a vibrant business ecosystem, providing Chinese companies with global business opportunities in this strategically located and economically booming region.

At the forum held yesterday, His Excellency Mohammed Ali bin Rashid Al Lootah, President and CEO of Dubai Chamber, emphasized: "China is still Dubai's largest trading partner. Dubai is becoming increasingly attractive to Chinese investors who are interested in expanding their global business. According to data from Dubai's Foreign Direct Investment Monitor, the total value of China's investment in Dubai will reach US$5.4 billion between 2015 and 2023." In order to establish Dubai's global influence, the Dubai Economic Agenda D33 will give full play to Dubai's favorable location advantages and convenient transportation conditions, further consolidate and develop its status as an international transportation hub, and build Dubai into the world's most dynamic trade corridor in the next 10 years, expand economic and trade exchanges with 400 cities in the world, become the world's top four financial centers and the preferred capital market in the Middle East, Africa and South Asia (MEASA), and rank among the world's top five logistics centers and the world's top three tourist destinations.

To this end, in the first batch of projects of Dubai Economic Agenda D33, Dubai launched the "Future Economic Corridor Plan 2033" to increase economic and trade exchanges with Africa, Latin America and Southeast Asia; Dubai recently launched the Dubai Al Maktoum International Airport expansion plan, which will create the world's largest airport, and the annual passenger throughput will increase to 260 million; and just recently on July 10, Dubai announced the launch of the world's largest food, vegetable and fruit logistics zone development plan, emphasizing that Dubai aims to become a leading destination for markets, exports and transshipment businesses in various industries, and maximize economic opportunities for investors in this field; in addition, Dubai will also build the world's largest and most advanced automobile market, using the global network of Dubai Ports World Group to enhance Dubai's connectivity and further enhance its status as a global trade center.

At the same time, under the trend of artificial intelligence and digitalization, vigorously developing the digital economy has also become one of the core agendas of Dubai Economic Agenda D33.Its goal is to increase economic productivity by 50% through the application of innovation and digital technology; through digital transformation, the project generates an economic contribution of more than US$27.2 billion per year. It is expected that by 2031, the scale of the UAE's digital economy is expected to grow to more than US$140 billion.

Technology companies and start-ups will also benefit as Dubai strives to become a global leader in the digital economy.In the field of innovative economy, Dubai has set up a plan to support 30 companies in new fields to grow into global unicorns; launched "Sandbox Dubai" to make Dubai a center for incubating business innovation by testing and marketing new products and new technologies; and the Dubai Digital Economy Chamber has created a friendly business environment for technology companies through a series of supportive measures.

Dubai Business Forum-China Event

Artificial intelligence and green technology are also the two core areas of cooperation between Chinese companies and Dubai.

Dubai, known as the "city of the future", began to build data centers in the Dubai Internet City plan more than 20 years ago. In today's booming AI wave, Dubai is also emerging as a leader in the Middle East's AI industry.

The city leads the world in attracting AI foreign direct investment as a percentage of GDP, is home to eight tech unicorns, and ranks seventh globally in readiness to adopt AI applications.

Data from global consulting firm PwC shows that by 2030, artificial intelligence will account for nearly 14% of the UAE's domestic GDP.

On April 29 this year, the Dubai government announced the launch of the "Dubai General Blueprint for Artificial Intelligence", which is committed to transforming Dubai into a global center for artificial intelligence governance and legislation. Dubai will also launch an artificial intelligence and WEB3 incubator, with the goal of attracting technical talents and business leaders from around the world, supporting them in transforming pioneering concepts in the field of AI into commercial products, and expanding to the world from Dubai.

In terms of green technology, Dubai has launched a "Clean Energy Strategy" that plans to build Dubai into a green economy and green energy center by 2050, reducing the carbon footprint of power generation by 70%, saving US$190 billion, and making Dubai the city with the smallest carbon footprint in the world.

To achieve this goal, Dubai will provide a $27.2 billion green fund to offer convenient, low-interest loans to clean energy investors; use 3D printing technology to build a comprehensive innovation center dedicated to the research and development of cutting-edge technologies such as solar energy, 3D printing and the use of drones; and invest $136 million in the research and development of smart grids, energy efficiency and integrated solar power generation.

China's leading capabilities in renewable energy will undoubtedly help Dubai's ambition to become a green technology center, and will be more conducive to the application, development and iteration of emerging technologies.

The D33 agenda's lofty ambition to "reinvent Dubai" requires, in particular, attracting global talent and potential companies to settle locally. Therefore, Dubai has spared no effort in improving the business environment and attracting cutting-edge talent.

For example, Dubai has launched the Dubai Traders Project to provide support for a new generation of Dubai traders in key industries; launched the Dubai Unified License to provide a unified business identity for all companies in Dubai; developed a plan to identify 400 companies with great potential and support them in capacity building and global expansion to promote the growth of small and medium-sized enterprises; and focused on introducing high-quality global university resources to make Dubai a pioneering center for global higher education.

Dubai Business Forum-China Live

Dubai, a better place to defend globalization than Davos

From an abandoned fishing village to an unknown port and finally to a global financial center, Dubai’s development trajectory is truly legendary.

But Dubai has no intention of replicating any great city of the past; instead, it is becoming a new kind of city with style, a true global node.

The uniqueness of this city lies not in its profound cultural heritage, but in its borderless cosmopolitanism and smooth global connections.Dubai International Airport is the world's busiest international aviation hub, welcoming a record 44.9 million passengers in the first half of 2024; the foreign-born permanent population here accounts for more than 90%, making it a veritable world's first "melting pot" where all kinds of civilizations blend and converge.

"Perhaps Dubai is better suited to defending globalization than Davos. It is a truly international city with residents from hundreds of different countries and regions, various religions coexisting here, and people enjoying extremely high freedom and tolerance. It is a successful example of the practice of globalization," said Frank Kane, a well-known financial writer, in a column.

Dubai's geographical location and convenient transportation also make it extremely influential in the global network: Dubai is located at the "crossroads" of the three continents of Europe, Asia and Africa. Its superior geographical location provides convenient conditions for entering regional and international markets, making Dubai an important gateway for companies to expand their regional and global business. Dubai International Chamber of Commerce has 31 offices around the world, including 3 representative offices in China. On the one hand, with the assistance of these offices in China, companies can carry out business activities in Dubai; on the other hand, companies can use the powerful network of influence formed by Dubai International Chamber of Commerce to expand their business globally; as the world's leading logistics, tourism and retail capital, Dubai has world-class infrastructure, equipped with modern airports, seaports, logistics facilities and a convenient transportation network, providing a mature route for international trade.

In addition, it has a mature and convenient business environment: the UAE government has successfully implemented a series of measures to simplify the procedures for setting up businesses and provide incentives for foreign investors.Dubai offers a favorable tax system that allows companies to retain a larger share of profits; the city is home to more than 20 free trade zones focusing on specific industries, covering a variety of industries such as technology, media, finance, logistics, healthcare, manufacturing, etc. Companies established in the free trade zones enjoy a range of advantages, such as tax and tariff concessions, professional infrastructure and business support services.

At the same time, Dubai also has a development vision and grand blueprint for economic diversification and transformation: Dubai Economic Agenda D33 is attracting international technical talents, multinational companies, and overseas SMEs; Dubai's new energy and digital economy sectors provide rich opportunities for Chinese companies, especially in Dubai's clean energy strategy and Dubai's blockchain strategy.

Therefore, Dubai has also become an ideal choice for Chinese companies to go overseas and globalize.

The increasingly close comprehensive strategic partnership between China and the UAE provides solid and reliable policy support for Chinese companies to go overseas to Dubai. The UAE is one of the first countries to join the Belt and Road Initiative; on January 1, 2024, the UAE officially became a member of the BRICS cooperation mechanism.

At the 2024 China-Arab Entrepreneurs Summit held in May this year, Chinese Ambassador to the UAE Zhang Yiming said in his speech that in 2023, against the backdrop of the global economic downturn, the scale of China-Arab trade will approach the $100 billion mark. The UAE remains China's second largest trading partner, the largest export market, and the third largest engineering market among Arab countries. Bilateral cooperation is "high-level and low-level" and "multi-faceted". More than 8,000 Chinese companies have invested and started businesses in the UAE, covering various industries such as infrastructure, finance and currency, new energy, life sciences, and artificial intelligence.

Parag Khanna, a top global strategist, praised Dubai in his blockbuster book, Super Map, for its rapid development and inclusive and open cosmopolitanism, and its rise as a pioneer representative of a new type of global city:

“If there is any city that embodies the saying ‘if you build it, they will come’, it is Dubai – the fastest growing city in the world. Great cities usually keep up with the times by continuously developing, but Dubai has been self-reinventing itself generation after generation, from pearl fishing to oil production to entrepot trade, to today’s infrastructure, real estate, tourism and service industries, Dubai has doubled its size with every step. Located at the intersection of East and West and North and South, Dubai is proudly becoming the ‘center of the world’.”

Such a place is the best starting point for Chinese companies to go global.