One big market waiting for China to invest is in the Middle East, more specifically, the United Arab Emirates. Today marks the opening in Shanghai of China's Dubai Week. The two countries are exploring even more investment and trade deals than they already have.
Dubai Week began with the signing of an MOU between Invest Shanghai and Dubai's foreign investment promotion officials. As of now, Chinese investment in the UAE has hit 2.3 billion US dollars. The number of Chinese companies operating in the UAE has jumped dramatically over the past decade - from only 18 companies in 2005 to over 4,200 now. China is now the second biggest trade partner of the UAE, accounting for example, for 36 percent of the UAE's imports of fabric. That's not only for local consumption, of course, but also for re-exports to Europe and southern Africa. Other traditional sectors also see Chinese capital playing an active role.
"In terms of infrastructure, lately we have seen Chinese companies participating in major mega projects, both in terms of construction and infrastructure. Recently there has also been discussion about expansion in certain sectors of the transportation industry, which we expect Chinese companies to be able to provide some quite good input and assistance due to the vast experience they had been having over the past decades," H.E. Hisham Abdulla Al Shirawi, vice chairman, Dubai Chamber of Commerce & Industry.
Apart from traditional sectors, companies in booming industries like e-commerce are also expanding in Dubai. Alibaba is involved, and the Dubai chamber of commerce says it expects more Chinese companies will be joining the country's build-up of the e-commerce industry. Dubai plans an expo in 2020, and one of the organizers says the city will use the event as another draw for more Chinese investments.
"We've learned so much from SH in 2010, it was such an absolutely fantastic expo, and sets the bar for many future expos, which is a very high bar for Dubai 2020 to reach. We are learning a lot, and we are collaborating to make sure we have a fantastic expo. //We are open for business for any companies world wide, and we actively promote our tendering opportunities on an e-source portal that can be found online, and we encourage all Chinese companies, as well as companies from all over the world to register and participate in those opportunities," said Gillian Hamburger, vice president of Commercial, Expo 2020 Dubai.
Dubai 2020 Expo will be the biggest international exhibition ever held in the Middle East. It is expecting more than 25 million visitors. There are now over 100 direct flights a week between Dubai and a dozen Chinese cities, and Dubai authorities will be working with local airlines and Chinese partners to attract Chinese visitors to see the expo.
