UAE-China Relations to Strengthen with Increased Investments in Real Estate
China intends to increase investments in the UAE market real estate market. This is a direct result of diplomatic efforts to strengthen bilateral ties between the two nations. Over the past 4 decades there has been an increase in trade, tourism and investments between the two countries. Chinese nationals are traveling in larger numbers to the UAE for both trade and tourism.
The two countries have enjoyed strong economic and cultural ties since the very beginning. The UAE, in particular, has opened the gates to Chinese travelers by issuing a visa on arrival policy for Chinese citizens. This move might prove decisive for bolstering the real estate market of the oil producing nation.
Reports issued by the tourism authorities of the two countries showed that in 2018 alone, over 1.1 million Chinese tourists flocked to the rapidly developing Middle Eastern nation. These massive numbers are projected to rise even further. Every week more than 150 flights connect Chinese cities with major tourist destinations within the UAE.
The Belt and Road Initiative by the Chinese President Mr. Xi Jinping has been a catalyst in the past few years for deeper economic cooperation between the UAE and China. Increased interest by China in the UAE has meant that the current Chinese expatriate population in the UAE, which stands at 200,000 will increase further.
As recently as July 21, the Crown Prince of the UAE, Sheikh Mohamed bin Zayed Al Nahyan paid an official state visit to the People’s Republic of China. The aim of the visit was to negotiate investment deals for China in the UAE. As a result of this agreement, China’s President Mr Xi Jinping and the Crown Prince of the UAE Sheikh Mohamed bin Zayed al Nahyan reached an agreement, which is expected to increase bilateral trade between the two countries to $200 billion by the end of 2030. The value of investments is expected to rise by three times the current aggregate investment.
The UAE Crown Prince and the Chinese President signed 16 agreements and memorandums of understanding to bolster cooperation in areas as diverse as finance, investment, food security, environment and technology.
The latest visit by the UAE Crown Prince as well as strengthening ties with other friendly states will solidify the Chinese economy and increase its immunity to the ongoing trade dispute. It will also accelerate growth for the UAE’s economy.