People often tell me that the future is being built in China. Yet I am struck by the same impression in my regular visits to the United Arab Emirates. Home to the world’s tallest building and a burgeoning, sophisticated business community: the Emirates is rising.
When you land in the UAE, you step into world-class infrastructure built with support from Chinese construction companies. From the expansion of Dubai International Airport to the new terminal at Abu Dhabi, and the Dubai Metro, Chinese firms have a proud history in helping this country realise its vision for the future.
Today I see new opportunities for partnership, particularly in the technology space. The UAE has itself witnessed many firsts in recent years: the world’s first Minister for Artificial Intelligence; the world’s first dedicated AI university; and the Falcon generative AI model, which ranked among the best open-source large language models available at the time.
The research capabilities and expertise of Chinese technology leaders can accelerate progress. China has been the UAE’s largest trading partner for many years and over 15,000 Chinese businesses operate here. Intense domestic competition in China has helped groom a large base of market-leading companies that have accumulated a wealth of technology capabilities, from digital and clean technologies to the latest artificial intelligence developments, which will empower their overseas expansion.
The UAE’s financial strength and dynamism is attracting Chinese technological expertise. The Emirates is home to the highest percentage of internet users anywhere in the world. Consumers have a strong demand for high-tech products and services, supported by high incomes and purchasing power.
China expands its technological footprint in the UAE
Investment has followed, including from the gaming and internet leader Tencent, which is expanding its cloud computing business in the country. E-commerce giant Alibaba has also sought to partner with local firms.
Chinese companies typically seek to form a relatively complete industrial chain and ecosystem in the market where they operate. For example, they may build an e-commerce platform for local customers, and bring in logistic companies to deliver purchased goods efficiently. This ecosystem may include social media platforms developed by Chinese companies where local customers can interact and share experiences with one another.
Meituan, China’s largest food delivery company, recently chose the Middle East to launch its first international expansion. Already operating drone delivery within China, Meituan’s drone delivery business recently joined the government’s NextGen FDI program to scope the possibility of introducing its delivery drones, operating systems, and drone hubs to the UAE.
In doing so, Meituan’s management noted the UAE’s “pursuit of innovation and the strong support shown for the UAS sector by government authorities.” This forward-thinking policy environment will attract more technology leaders to benefit the local economy.
Smart cities are another attraction for Chinese companies seeking opportunities in the Middle East. Urban areas are being renovated as economies diversify and transform, creating many new projects. This will also promote digital development across the broader region, presenting more business opportunities to Chinese companies. The UAE can be a hub for their further expansion into the Middle East and Africa.
Recent reforms are accelerating the process of integration. Companies listed in the UAE are now able to make a secondary listing in Hong Kong, for example. Further liberalisations can encourage commercial technology ties which have positive benefits in creating employment and upskilling the domestic workforce.
The UAE is young, ambitious, tech-savvy – and rising. Embracing the next wave of innovation, in partnership with world-leading Chinese companies, can work to the benefit of all.
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