UAE-China $ 3.4 billion deal to strengthen trade ties
The United Arab Emirates (UAE) has signed U.S. $ 3.4 billion deal with China under the latter’s Belt and Road Initiative (BRI), focusing on expansion of trade and investments ties between the two economies.
The agreement was signed by the Vice President and Prime Minister of the UAE – Sheikh Mohammed bin Rashid Al Maktoum and the President of China – Xi Jinping.
The deal includes a massive infrastructure project that involves building roads, railways and shipping lines between China and more than 60 countries in Asia, Europe, Middle East and North Africa. It also covers a development of a 60 million square feet station at the new Silk Road in Dubai for Expo 2020.
The agreement will also increase the worth of bilateral trade between UAE and China from U.S. $ 53 billion to U.S. $ 70 billion in 2020.
Signing the agreements, Sheikh Mohammed bin Rashid Al Maktoum tweeted, “We concluded our participation in the Belt and Road Conference for International Cooperation. The global initiative will connect societies, economies and people and boost global growth in multiple sectors and industries through developed infrastructures and new trade routes.”
He added, “We launched 60-million square feet ‘Traders Market’, an international station for the Belt and Road Initiative in Dubai opposite to Expo site. Our Chinese partner will invest $2.4 billion in using the station to store and ship Chinese products from Jebel Ali to the world.”
Besides, UAE has also launched a U.S. $ 1 billion ‘Vegetable Basket’ project in Dubai, supported by the China-Arab Investment Fund, to import, process, pack and export agricultural, marine and animal products to the world through the new Silk Road.
The UAE has emerged as a key player in BRI, which aims to link China via sea and land to Asia and Europe through a range of strategic investments. As of now, China is UAE’s 2nd largest trading partner and the UAE serves as a major gateway for Chinese exports to the Middle East.
The UAE believes that this collaboration will boost the Belt and Road Initiative, given the Arab world’s strategic location that connects East & West. This will also give impetus to UAE’s Dh 1.42 trillion economy, which is expected to grow at 3.8% in 2020.
