DMCC and the Beijing Daxing International Airport Economic Zone have signed an agreement to boost Dubai-China trade relations.
The Dubai Multi Commodities Centre (DMCC) has entered into an agreement with the Administrative Committee of Beijing Daxing International Airport Economic Zone (BDIAEZ) to foster closer trade relations between Dubai and China. The agreement signifies a commitment to establishing a cooperation mechanism that will facilitate strategic collaboration on bilateral projects and trade initiatives.
The collaboration between DMCC and BDIAEZ aims to create a model for global free trade zones by sharing knowledge and expertise. DMCC, with its extensive experience in attracting and managing diverse businesses and its world-class infrastructure, will play a crucial role in this partnership.
Ahmad Hamza, Executive Director – Free Zone at DMCC, expressed the growing economic ties between the UAE and China, highlighting the potential for mutually beneficial outcomes when trade partners work together. The strategic agreement with BDIAEZ aims to enhance collaboration between Dubai and Beijing, providing new opportunities for businesses seeking expansion and access to new markets. By offering an enabling environment, the partnership aims to facilitate ease of doing business and support entities looking to tap into their full potential.
As a result of the agreement, both DMCC and BDIAEZ will offer guidance and support to businesses interested in establishing a presence in either free zone. The aim is to simplify the requirements, processes, and costs associated with setting up operations. Additionally, the entities will explore the development of industry clusters within each free zone and share trade infrastructure. The goal is to create highly globalized, interconnected, and open policies for the industry, attracting companies to these business districts.
Youguo Wang, Secretary of the Beijing Daxing District Committee of the Communist Party of China and Secretary of the CPC Work Committee of BDIAEZ, expressed excitement about the partnership with DMCC and its potential to support China’s Belt and Road Initiative. By leveraging the strengths of both cities, the collaboration aims to enhance cooperation and create new opportunities, fostering greater interconnectivity between Beijing and Dubai.
DMCC has gained prominence through its world-class facilities, business services, and commitment to improving the ease of doing business. Currently, it is home to over 23,000 member companies, ranging from large multinationals to small and medium enterprises (SMEs) and entrepreneurs. Notably, DMCC hosts over 750 Chinese companies, representing more than 12 percent of all Chinese businesses registered in the UAE. In April 2023, DMCC organized a China Business Day, attracting 200 Chinese business leaders, with the aim of supporting the targeted US$200 billion China-UAE bilateral trade growth by 2030.
China holds the position of the UAE’s largest trading partner, accounting for 11.84 percent of the country’s total non-oil trade in 2022. The non-oil trade value between the two countries amounted to AED 264.2 billion, reflecting an 18 percent growth from the previous year. Efforts are underway to expand the trade value to US$200 billion by 2030. Furthermore, China ranks as the third-largest foreign investor in the UAE, with an FDI balance of AED 34 billion in 2021.
The agreement between DMCC and BDIAEZ marks an important milestone in strengthening Dubai-China trade relations. By leveraging their respective strengths and fostering cooperation, the two entities aim to create a thriving business environment that will drive economic growth and facilitate greater opportunities for businesses in both regions. The collaboration aligns with the broader goal of advancing global trade and connectivity, contributing to the economic prosperity of Dubai, Beijing, and beyond.
