Ironically, while the recent military clashes in the Gulf have rattled markets and concerned wealth managers, the Asian economic giant and Middle East jurisdiction have signed an investment partnership pact.

The governments of the United Arab Emirates and China have agreed to promote bilateral investment flows – a sign that the jurisdictions are continuing to interact against a backdrop of geopolitical strains. 

As announced yesterday, the UAE and China said they have signed a memorandum of understanding. The signing was witnessed by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and H E Li Qiang, Premier of the State Council of the People's Republic of China, a statement from the UAE’s Ministry of Investment said yesterday. 

The MoU was signed by H E Liu Sushe, vice-chairman of the National Development and Reform Commission, and H E  Mohamed Hassan Alsuwaidi, UAE Minister of Investment (see main picture).

Following the MoU agreement, the jurisdictions will look at building joint investment platforms, funds and other vehicles to support investments, including in third markets. It also supports creating a China-focused investment platform by relevant UAE investment entities, subject to applicable approvals and prevailing market conditions.

"This MoU marks a significant milestone in the UAE's strategic partnership with the People's Republic of China – our principal trading partner and the fourth-largest source of FDI [foreign direct investment] into the UAE, representing 6.3 per cent of total inward FDI stock as of 2024,” H E Mohamed Hassan Alsuwaidi, UAE Minister of Investment, stated. “More than 16,000 Chinese companies already operate in the UAE – a testament to our strong business ties and the continued confidence they place in the UAE as a platform for regional and global growth.”