$70B bilateral trade expected after UAE-China deal
The latest $3.4 billion UAE-China deal will position Dubai well in the One Belt One Road project where the emirate will be a major supply link to the global initiative and play an important role in international trade by further developing its logistics and shipping sectors, experts say.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Friday announced the historic agreement that will boost existing $53 billion bilateral trade to $70 billion next year. It will further strengthen the UAE’s Dh1.42 trillion economy, which is expected to grow at 3.8 per cent in 2020.
“We concluded our participation in the Belt and Road Conference for International Cooperation. The global initiative will connect societies, economies & people & boost global growth in multiple sectors & industries through developed infrastructures and new trade routes,” Sheikh Mohammed said in a tweet on Saturday.
During Sheikh Mohammed’s visit to Beijing, major deals were signed and investments including the launch of 60 million square feet station at the new Silk Road in Dubai for Expo 2020. He also announced plans for a $1 billion ‘Vegetable Basket’.
China on Saturday announced that $64 billion in deals were signed at three-day summit. A joint communique issued at the conclusion of the summit said that leaders had agreed to project financing that respects global debt goals and promotes green growth.
Shahzad Ahmed, chairman and chief executive of Blue Ocean Group, said the UAE-China deal will boost the UAE economy as well as the shipping, logistics, transports and distributions sector of this region a lot.
“The 60 million square feet Traders Market that will be built opposite to Expo location which will include large logistics warehouses and wholesale retail outlets, will enhance export and import greatly,” he said.
Dubai already hosts the world’s largest Chinese product market outside China at Dragon Mart at the International City – home to more than 4,000 Chinese companies.
“The UAE has built itself with great expertise and resources. And its strategic position as a global business hub has given boundless opportunities to businesses like ours, to grow at a faster rate,” he said.
Imran Farooq, group CEO, Samana Group, said the latest announcement to connect Dubai with China’s game-changing One Belt, One Road initiative that will see billions of US dollars investment pouring into UAE economy, is a case in point.
“The $3.4 billion investment to create a Traders Market and a Vegetable Basket will go a long way in strengthening Dubai’s position in the global economic map and is a tip of the iceberg in attracting larger investment. I believe, this is a new beginning and this charts a new horizon that will help us grow in the UAE,” he said.
“One Belt One Road initiative will change the economic landscape of Asia and Europe and will have a profound impact in the global economy. It is important to be connected to this move. I am happy and very excited to know that we are going to be part of this initiative,” he said.
Sunil Paul Gomes, CEO of Gemini Property Developers, said the latest $3.4 billion announcement by UAE and China will strengthen Dubai’s position in the global map and Dubai will play a key role in the One Belt One Road initiative. This is good news for all of us as this will help the UAE economy to grow further, he said.
“Dubai already hosts the world’s largest Chinese product market outside China at Dragon Mart at the International City – home to more than 4,000 Chinese companies. We believe, these twin initiatives will boost global investment in to Dubai and that will have a knock-on impact on other sectors, as demand will grow,” he said.