As the US-China trade war continues, Chinese investors are increasingly looking towards Dubai and the UAE, according to the chairman of Hong Kong-based Affluent Partners Holdings Limited.
In an interview with CNN International, Stephen Yuen outlined why Dubai is becoming an increasingly attractive location for Chinese investors.
Chinese President Xi Jinping's recent visit to the UAE is seen as a precursor to closer ties between Abu Dhabi and Beijing.
Affluent Partners Holdings Limited recently signed a memorandum of understanding with Equitativa, the largest real estate investment trust manager in the Gulf region.
He told CNN: "I can see more Chinese investors focusing on Dubai, not just for home but for offices and other investments too... They are interested in this part of the world because the yields are attractive and because of the political stability. These are the two main criteria they look for.”
He added: "We've definitely noticed an increase in Chinese buyers in the last six months and in the last couple of years. We've recently sold a luxury property to the owner of a business that recently relocated to Dubai. Since then we've gone on to sell them entire buildings to use as accommodation for their workers and they've actually got a requirement to buy more so it's definitely a noticeable trend that's unfolding here in Dubai."
On the impact increased Chinese investment is having on the region, he said: "We actually can see physically that this has affected largely the domestic market here. You can see Chinese investors, we can see more Chinese companies, more trade licenses from Chinese firms opening in the UAE.”
He added that Affluent Partners Holdings Limited is hoping to find a "good partner" for its investment in the UAE, in particular in Dubai.
"We have people from China who are interested in China and they hope we can bring them valuable information from Dubai so that they can consider it seriously,” he said.
His comments come just weeks after Dubai-based real estate giant Emaar began business development operations in China in a bid to promote Dubai as an investment destination and boost tourism from Asia’s largest economy.
Emaar said it has begun the design and fit-out of two offices in Beijing and Shanghai, staffed by a team specially recruited from China.
The two showrooms will be used to showcase the UAE as an investment destination, with a focus on property, educational opportunities and healthcare.
Eight out of 10 businesses in the UAE say China will be among the most important export markets of the future, according to research published in November.
HSBC’s first Navigator: Made for China survey said that nearly half of UAE businesses already doing business with China plan to grow sales there in the next three to five years.
A further 10 percent of UAE companies yet to enter the Chinese market will prioritise expansion there, it added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.