Dubai Multi Commodities Centre (DMCC), one of the emirate's trade free zone, signed two agreements with Chinese authorities to boost bilateral trade ties between UAE and China and attract foreign investment to the emirate.
DMCC signed a memorandum of understanding (MoU) with Hangzhou China Council for the Promotion of International Trade (CCPIT), and the Department of Commerce of Shandong Province in Qingdao during a roadshow to promote the free zone, it said in a statement on Saturday.
"We are already seeing an increase in the number of Chinese companies choosing to set up in Dubai," Feryal Ahmadi, chief operating officer of DMCC, said. "We are perfectly placed to support the Belt and Road Initiative by developing national initiatives and creating new trade flows between Dubai and China."
The Belt and Road Initiative is Beijing's program to re-create the old Silk Road trading route, joining China with Asia and Europe. More than 4,000 Chinese companies are based in the UAE and 423 in DMCC, making the free zone home to around 10 per cent of the Chinese firms in the region's second-biggest economy.
China is one of the UAE’s largest trading partners, with trade between the two countries expected to reach up to Dh257bn by 2020, rising from Dh139bn in 2018, DMCC said.
"This agreement will contribute to strengthening our commercial relationship with the emirate of Dubai and result in an increase in trade and business opportunities,” Yan Zhaowan, director of the Shandong Provincial Commerce Department, said.
In April, China announced a Dh12.49bn investment into shipping and food projects in Dubai, as part of its Belt and Road initiative. It has also confirmed its participation in Dubai's Expo 2020, investing over Dh367 million in its pavilion.
DMCC has attracted more than 3,000 businesses from 17 cities to date to its Made for Trade roadshows. The programme brings together business leaders interested in expanding their home base and offers them insights into the commercial appeal of Dubai and the opportunities it offers for growth in the region.