Insight: UAE & China Strike Powerful Partnership

President of China Xi Jinping’s visit to the UAE has seen a raft of big trade, logistics and transport deals struck, furthering the partnership between the two countries to unheralded levels, but what does this mean for the UAE?

Firstly, what makes this meeting especially notable is that both the UAE and China have never been so powerful and important on the world stage before.

Both countries are strong and growing, so increasing collaboration between the two countries means that a powerful international relationship is in the making.

President Xi met both Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, and Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi, during his visit, after which several key deals were announced.

UAE Signs Free Zone Deal with China

Etihad Sign Big UAE Logistics Deal with Chinese Investment Co.

In total, 13 agreements have been made in many key areas, including finance, logistics, oil and petroleum.

Sheikh Mohammed bin Rashid said: "We have many areas of political and economic agreement and a solid base of projects in the energy, technology and infrastructure sectors.

“More importantly (we have) a strong political will to start a greater phase of cooperation and integration.

“We have exemplary relations with China and a Chinese leadership that sees the UAE as main strategic partner in the region.”

China Pledges $20 Billion to Middle East

One key factor in the deals is China’s One Belt, One Road (OBOR) initiative that aims to unite ancient trade links between Asia, the Middle East and Europe.

Given the UAE’s key strategic position, a healthy and trade-friendly relationship with the UAE is vital for China and OBOR.

One potential stumbling block may be China’s ties to Iran, a country often seen as a competitor to the UAE, however, the current trade deals seem to provide both countries with a big opportunity to create the most elite trading corridor in the world.

Read more: UAE Signs Free-Zone Deal with China