BRI & UAE: A Research StudyThe BRI has now completed its ten years during which it has brought unlimited “befitting propositions” for all the participating countries

The BRI has now completed its ten years during which it has brought unlimited “befitting propositions” for all the participating countries and the UAE-China bilateral relations “reconfirm” its multidimensional importance.

According to the World Bank published reports the BRI covers more than 153 countries, 65 percent of the world’s population, 40 percent of the world’s land, 36 percent of the global GDP and 75 per cent of known energy reserves and 

 partnership under the flagship project of the BRI is creating “immense” socio-economic integration, connectivity and diversification of economy leading towards innovations, digitalization, e-commerce, qualitative industrial chains, “big data” and “AI cooperation”. 

Additionally, it is expected to decrease trade cost and lift trade barriers among many countries involved in this initiative. United Arab Emirates (UAE) is a “natural” strategic partner of BRI with an important geographical location and huge “logistic” potential creating befitting propositions for both the countries.  

 partnership both countries have extended their cooperation into many fields, ranging from trade and financial services to education and culture, and now to space cooperation. Moreover, it has established “sustainable” aviation cooperation and 

has become the first foreign airline to operate routes to Beijing, Shanghai, and Guangzhou since the outbreak of the pandemic.

The Dubai Traders Market (DTM) is one of the biggest projects under BRI. The DTM covers approximately 800,000 square metres and is part of the Jebal Ali Free Zone. Furthermore, the China-UAE Industrial Capacity Cooperation Demonstration Zone, (ICCDZ) is another mega project of the BRI. Since 2019, it has attracted more than 3.2 billion RMB ($505 million) in investments. This cooperation has enabled to receive cutting-edge technologies, expertise and investments that have propelled its industrial growth.

It supports five industrial sectors: Metals & Advanced Manufacturing, Petroleum Equipment & Technical Services, Building Materials & Home Furnishings, Renewable Energy & Environmental Technology, and Electric Vehicles & Heavy Machinery.

To give new impetus to their cooperation the China National Space Administration signed a Memorandum of Understanding with UAE's Mohammed bin Rashid Space Centre (MBRSC), marking the beginning of the first joint space project between the two countries and laying a solid foundation for future space cooperation between the two countries. 

Likewise, the CRRC Zhuzhou Locomotive Co., Ltd., a subsidiary of CRRC Group, successfully delivered two Autonomous Rail Rapid Transit Trains, (ART) to the UAE. It was CRRC's first batch of ART trains delivered to overseas users.

UAE is situated geographically at the crossroads of Europe and Asia, and is expected to play a vital role in the BRI. The UAE stands confident to be a leader and consolidate itself as the trade hub of the GCC, MENA, Middle East and the gateway to Africa.

Dubai’s DXB Airport has become the busiest of the region since 2014. It is also the busiest airport in the world by international passenger count. On the other hand, the Al Maktoum Airport, which focuses on cargo flights into Dubai (including China Airlines Cargo and Emirates Sky Cargo), and the Abu Dhabi Airport, which is the home base of Etihad Airways both are supporting the BRI inroads to the Gulf region.

The Port of Jebel Ali is the 12th busiest container port in the world handling more than 13.5 million TEUs in 2020. Moreover, it is the fourth-busiest port outside of China (including Hong Kong), and by a considerable margin, the busiest of the Gulf region. The second- and third-busiest ports of the Gulf both share land borders with the UAE, being Jeddah Port in Saudi Arabia in second place with 4.4 million TEUs per year (in 2019), and Salalah Port in Oman, at 4.1 million TEUs per year (2019), both handling less than one-third of the TEUs compared to the Port of Jebel Ali ensuring enhanced aviation maritime connectivity under the BRI creating befitting partnership for both the countries.

The Khalifa Port in Abu Dhabi is one of the largest deep-water harbours in the world. China’s COSCO Shipping Ports (“CSP”) holds Abu Dhabi Terminal. The CSP terminal covers an area of 275,000 square metres and is the CSP’s regional hub of its network of 36 ports across the globe. The CSP terminal has a design capacity of 2.5 million TEUs annually and the ability to accommodate mega vessels carrying in excess of 20,000 TEUs.

UAE has a number of shared interests with China in the areas of education, science, technology, culture, tourism, space and artificial intelligence. The UAE is at the forefront of such endeavours and the Emirates of both Abu Dhabi and Dubai provide a regional hub for Fintech business. Hopefully it is expected to expand as the UAE seeks to benefit from the digital aspects of the BRI and its closer ties with China.

It seems that the UAE is the undisputed leader of the region in terms of the BRI both with the physical transportation of goods, and on the digital and technology front. As a consequence, the more than 4,000 Chinese businesses already in the UAE stand to strengthen the important platform from which the UAE provides a gateway to the vast emerging markets of the entire Gulf region, which includes close to 100 million residents.

In summary, hopefully, the bilateral cooperation of UAE-China will be further enhanced in technology, innovation, space exploration, nuclear energy, renewables, EVs and blue/green hydropower generation, making BRI an attractive strategic partner mega project for the UAE.

It is predicted that China will support the UAE's efforts to reduce dependence on fossil fuels and search for more sustainable sources of energy, by entering into partnerships to build power plants using solar panels, and intensifying research cooperation to create more technological alternatives in renewable energy. 

Interestingly, UAE hosts the largest Chinese trading hub outside of the mainland, Dragon Mart, which is in Dubai. The UAE is home to about 200,000 Chinese citizens and 4,000 businesses, while more than one million Chinese tourists visited the country in 2017.

According to the UAE’s Ministry of Economy in 2018, more than 22 per cent of Arab-Chinese trade goes through the UAE and 30 per cent of China’s exports to the Arab world pass through the UAE. Trade between China and the UAE is forecast to grow to $70 billion by 2023.

It forecasts that the two countries will witness more cooperation in digitalization, AI, medicine, and other high-tech areas under the BRI in the future.  

The UAE has world class transport links and possess large ports that are well positioned to service trade between Asia, Africa and Europe. Moreover, Dubai is strategic location between the Far East and Europe which has now become economic and financial centre for Asia, Africa and Europe would be value addition for the further growth of BRI in the Gulf region. 

This article is written by Dr Mehmood Ul Hassan Khan

Executive Director: The Center for South Asia & International Studies (CSAIS) Islamabad 

BRI and United Arab Emirates

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