UAE is a Favored Destination for Chinese Travelers and Businesses

July 16, 2024

The UAE has emerged as China’s most important economic and commercial partner in the Middle East, with bilateral trade reaching unprecedented levels and Chinese tourism experiencing remarkable growth. In 2025, this strategic partnership continues to deepen, creating exceptional opportunities for businesses and travelers from both nations.

The numbers tell a compelling story. Bilateral trade between the UAE and China reached $95 billion in 2023 and is projected to hit $200 billion by 2030. Dubai welcomed 824,000 Chinese tourists in 2024, representing a 31% surge from the previous year. With approximately 400,000 Chinese residents now calling the UAE home and thousands of Chinese companies operating across the emirates, the UAE-China relationship has evolved into one of the most dynamic bilateral partnerships in the global economy.

Why Chinese Travelers Choose the UAE

Dubai and Abu Dhabi have become premier destinations for Chinese travelers seeking both leisure experiences and business opportunities. The UAE’s visa-free entry policy for Chinese citizens, introduced in 2018, has transformed accessibility and fueled dramatic growth in tourist arrivals.

Chinese visitors appreciate the UAE’s world-class infrastructure, luxury shopping experiences, and cultural attractions. Dubai’s commitment to Chinese tourist comfort is evident in widespread acceptance of Chinese payment platforms like Alipay and WeChat Pay, availability of Chinese-language tour guides, and special celebrations during Chinese New Year featuring light shows and traditional festivities.

The business travel segment is equally robust. Chinese entrepreneurs and executives visit the UAE to explore investment opportunities, attend trade exhibitions, and establish business connections across the Middle East and Africa. The UAE’s position as a gateway to emerging markets makes it an essential destination for Chinese companies expanding internationally.

Strategic Economic Partnership

The UAE-China economic relationship extends far beyond tourism. China has become the UAE’s largest trading partner, accounting for nearly 30% of China’s non-oil trade with Arab countries. In the first quarter of 2025 alone, non-oil trade between the two nations grew 18% year-over-year, with UAE exports to China surging by an impressive 432.5%.

This partnership is integral to China’s Belt and Road Initiative, which the UAE actively supports. The UAE has committed $10 billion to the UAE-China Joint Investment Cooperation Fund, financing BRI projects across East Africa and beyond. In the first half of 2025, the UAE attracted $7 billion in BRI construction contracts, making it one of the initiative’s top recipients alongside Saudi Arabia and Nigeria.

Between 2003 and 2023, Chinese investments in the UAE totaled $7.7 billion, spanning sectors from clean energy and electric vehicles to infrastructure and technology. The UAE’s bargaining power in these partnerships has increased significantly, with Chinese firms offering technology transfers and localization agreements as they seek stable markets amid Western tariffs.

BRICS Membership: A New Chapter

The UAE’s official entry into BRICS on January 1, 2024, alongside Saudi Arabia, Egypt, Iran, and Ethiopia, has added a new dimension to UAE-China economic cooperation. This membership strengthens the UAE’s role in China-led economic initiatives while maintaining its strategic relationships with Western partners.

Through BRICS, the UAE participates in projects focused on innovation, connectivity, and trade facilitation. The bloc’s emphasis on clean energy, food security, infrastructure, and technology aligns perfectly with UAE national priorities. This multialignment strategy allows the UAE to work closely with China through BRICS while simultaneously collaborating with the United States through initiatives like I2U2.

Chinese Business Presence in Dubai

Dubai has become the preferred Middle Eastern hub for Chinese companies seeking regional expansion. The Dubai International Financial Centre hosts an impressive roster of Chinese financial institutions, with 30% of its Chinese members ranking among Fortune 500 companies.

Major Chinese banks operating from DIFC include the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China. In May 2025, China International Capital Corporation (CICC), China’s leading investment bank, officially launched its DIFC branch, marking another milestone in Chinese financial expansion.

Beyond banking, large Chinese corporations have established their Middle Eastern headquarters in Dubai. State-owned enterprises like CNPC, Sinopec, and State Grid Corporation of China operate alongside innovative technology companies such as NIO, Li Auto, ZTE, and Terminus. This diverse business ecosystem creates networking opportunities and facilitates trade across sectors.

In the first half of 2024, China announced 25 foreign direct investment projects in Dubai totaling $122 million. These investments span real estate, technology, logistics, and manufacturing, reflecting Chinese confidence in the UAE’s long-term economic prospects.

Trade and Re-Export Hub

The UAE’s strategic importance to China extends beyond direct bilateral trade. Approximately 60% of all Chinese exports to the Middle East are redistributed from UAE ports to other parts of the region. This positions the UAE as an essential logistics and distribution hub for Chinese companies targeting Middle Eastern and African markets.

Trade between all Arab nations and China has reached approximately $200 billion annually, with UAE-China trade representing roughly 25% of this total. The UAE’s world-class port infrastructure, particularly Jebel Ali Port and the broader Jebel Ali Free Zone, facilitates efficient handling of Chinese goods destined for regional markets.

Chinese companies leverage UAE free zones not just for trade but for value-added services including repackaging, quality control, customization, and after-sales support. This creates employment and economic activity beyond simple re-export operations.

Opportunities for Chinese Entrepreneurs

The UAE offers Chinese entrepreneurs an unparalleled platform for business growth. The country’s 100% foreign ownership regulations, tax-free structures, and streamlined licensing processes make company formation straightforward for Chinese investors.

Free zones provide sector-specific advantages tailored to different industries. Technology companies gravitate toward Dubai Internet City and Dubai Silicon Oasis. Logistics firms benefit from proximity to Jebel Ali Port. Financial services companies establish themselves in DIFC’s internationally regulated environment. This specialization ensures Chinese businesses find ecosystems aligned with their operational needs.

The substantial Chinese expatriate community—approximately 400,000 residents—provides cultural familiarity, language support, and business networks that ease market entry. Chinese restaurants, cultural centers, and community organizations create a comfortable environment for new arrivals.

Sectors Attracting Chinese Investment

Chinese investment in the UAE spans diverse sectors, each offering distinct opportunities:

Clean Energy and Electric Vehicles: China and the UAE are collaborating on solar energy projects, electric vehicle manufacturing, and transition metals processing. Chinese EV manufacturers view the UAE as an ideal showroom for Middle Eastern and African markets.

Technology and AI: Chinese technology companies are establishing research and development centers in the UAE, collaborating on smart city solutions, 5G infrastructure, and artificial intelligence applications.

Real Estate and Construction: Chinese investment in UAE real estate continues growing, with particular interest in Dubai’s luxury residential market and Abu Dhabi’s commercial developments. Chinese construction firms participate in major infrastructure projects across the emirates.

Healthcare and Biotechnology: Collaboration on medical technology, pharmaceutical manufacturing, and healthcare service delivery is expanding, driven by both nations’ focus on healthcare innovation.

Financial Services: Beyond traditional banking, Chinese firms are entering wealth management, fintech, and insurance sectors, serving both Chinese expatriates and broader regional markets.

Cultural Connections and Quality of Life

The UAE’s commitment to welcoming Chinese residents extends beyond business facilitation. Chinese schools operating in Dubai and Abu Dhabi offer curricula aligned with Chinese educational standards, easing family relocation concerns.

Major shopping destinations stock Chinese products and brands, while numerous Chinese restaurants serve authentic regional cuisines from across China. During Chinese New Year and other significant holidays, the UAE organizes celebrations featuring traditional performances, decorations, and community gatherings.

This cultural infrastructure helps Chinese families maintain connections to their heritage while embracing the UAE’s multicultural environment. The result is a comfortable transition for relocating professionals and entrepreneurs.

Looking Ahead: The Road to $200 Billion

Both nations have articulated ambitious goals for deepening their economic partnership. The target of $200 billion in bilateral trade by 2030 represents more than doubling current volumes—an aggressive but achievable objective given recent growth trajectories.

Achieving this target will require expanding beyond traditional trade in goods to include services, technology transfer, and investment partnerships. Joint ventures in emerging technologies, collaborative infrastructure projects, and integrated supply chains will drive the next phase of UAE-China economic integration.

The UAE’s role in China’s global economic strategy continues evolving. As Chinese companies face increasing restrictions in Western markets, the UAE offers a stable, business-friendly alternative with access to high-growth regions. For the UAE, Chinese investment and expertise accelerate economic diversification and technological advancement.

Your Gateway to Middle Eastern Markets

For Chinese businesses considering international expansion, the UAE provides an ideal entry point to Middle Eastern and African markets. The combination of strategic location, world-class infrastructure, supportive regulations, and a substantial Chinese community creates an environment where Chinese companies can thrive.

Whether you’re a financial services firm seeking regional presence, a technology company exploring new markets, a manufacturer establishing distribution networks, or an entrepreneur launching a startup, the UAE offers the resources and support you need.

Professional business setup consultants familiar with both Chinese business practices and UAE regulations can guide you through company formation, licensing, and market entry. This expertise ensures compliance while accelerating your timeline from planning to operations.

The UAE-China partnership has entered a new era characterized by unprecedented trade volumes, deepening investment ties, and expanding cultural connections. Chinese businesses and travelers have never had better access to the opportunities this dynamic market offers.