DMCC Signs Two Agreements to Boost UAE-China Trade and Attract FDI to Dubai

July 30, 2019

The Dubai Multi Commodities Centre (DMCC) has taken significant steps to enhance trade relations between the UAE and China by signing two agreements aimed at boosting bilateral trade and attracting foreign direct investment (FDI) to Dubai. These agreements underscore the commitment of DMCC to strengthening economic ties with China and positioning Dubai as a preferred destination for Chinese businesses and investors.

1. Trade Facilitation Agreement: The first agreement focuses on trade facilitation measures to streamline trade processes and enhance cooperation between DMCC and Chinese entities. By improving trade facilitation procedures, reducing bureaucratic hurdles, and fostering closer collaboration between trade partners, this agreement aims to facilitate smoother and more efficient trade transactions between the UAE and China. It may include initiatives such as simplifying customs procedures, enhancing logistics infrastructure, and promoting digital trade platforms to facilitate trade finance and documentation.
2. Investment Promotion Agreement: The second agreement aims to promote investment opportunities in Dubai and attract FDI from China to the emirate. Through targeted investment promotion campaigns, roadshows, and business matchmaking events, DMCC seeks to showcase Dubai’s strategic advantages, robust business ecosystem, and attractive investment climate to Chinese investors and businesses. This agreement may involve initiatives such as providing investment incentives, offering market insights and advisory services, and facilitating investment projects across key sectors of interest to Chinese investors, including commodities trading, logistics, technology, and finance.

Key objectives and outcomes of these agreements may include:

• Enhanced Bilateral Trade: By streamlining trade processes and fostering closer collaboration between DMCC and Chinese counterparts, these agreements aim to boost bilateral trade volumes and expand the scope of trade between the UAE and China. This can lead to increased exports, imports, and re-exports of commodities, goods, and services, benefiting businesses and economies on both sides.
• Attracted FDI: By promoting Dubai as an attractive investment destination and highlighting investment opportunities in key sectors, these agreements aim to attract FDI from China to Dubai, driving economic growth, job creation, and innovation in the emirate. Chinese investors may explore opportunities to establish businesses, set up joint ventures, or invest in existing projects within DMCC’s vibrant business community.
• Strengthened Economic Cooperation: These agreements contribute to strengthening economic cooperation and partnership between the UAE and China, fostering long-term collaboration and mutual benefits. By deepening economic ties, both countries can leverage their respective strengths and resources to address common challenges, seize new opportunities, and achieve sustainable development goals.

Overall, the signing of these agreements by DMCC underscores its commitment to fostering closer economic relations with China, promoting trade and investment flows, and positioning Dubai as a global hub for trade, investment, and innovation in the rapidly evolving global economy. Through strategic partnerships and collaborative efforts, DMCC aims to create a conducive environment for businesses to thrive, innovate, and contribute to economic prosperity and sustainable development in the UAE and beyond.