As per the President of World Economic Forum, Borge Brende, the move by United Arab Emirates and China to grow investment and trade ties by way of new deals costing $3.4 billion hasn’t come as a surprise.
On Sunday at the Capital Connection, Brende said that China is the second biggest economy in the world and Asia has now become 50% of GDP globally. He added that many countries like UAE are seeing market opportunities in a country like China.
China and UAE has signed a deal worth $3.4 billion this weekend. This was part of the country’s Belt and Road Initiative which is a massive project of infrastructure involving constructing roads, shipping lines and railways between China and 60 countries of Europe, Middle East, North Africa and Asia. They are expecting the recent agreement to boost the existing bilateral trade worth $53 billion to $70 billion the following year. The Prime minister of UAE and the Vice president of the country Sheikh Mohammed bin Rashid Al Maktoum participated in this initiative in Beijing where Sheikh Mohammed met Xi Jinping, the Chinese President to sign the deals.
China is UAE’s second biggest trading partner and UAE has become the main gateway for exports of China to Middle East. The two countries have launched new investments as part of the deals including developing a station of 60 million square feet at New Silk Road in Dubai for 2020 expo. Ruler of Dubai Sheikh Mohammed said that their Chinese partner would be investing $2.4 billion for using the station for storing and shipping Chinese products to world from Jebel Ali.
UAE is emerging the key player in the Belt initiative which attempts at linking China by land and sea to Asian and European markets by way of strategic investments which are often controversial.