Abu Dhabi strengthens economic ties with nation

Abu Dhabi is stepping up efforts to strengthen its economic partnership with China in areas ranging from artificial intelligence to advanced manufacturing, as the largest emirate in the United Arab Emirates aims to diversify beyond oil and position itself as a global hub for future industries.

"China is a vital partner in Abu Dhabi's economic transformation journey, particularly as the emirate further accelerates its economic diversification into high-growth, knowledge-driven sectors," Hamad Sayah Al Mazrouei, undersecretary of the Abu Dhabi Department of Economic Development, said during an exclusive interview with China Daily recently.

The UAE and China have forged a strong bilateral relationship over the past few decades. China has been the UAE's largest trade partner for years. What began as a $2 billion trade relationship between the UAE and China in 2000 has expanded 50-fold, reaching $102 billion in 2024, official data show.

The undersecretary said the UAE-China economic relationship has expanded well beyond trade into long-term collaboration on industrial projects, innovation and sustainability.

"Our bilateral cooperation has matured far beyond trade flows. It now encompasses transformational investments, next-generation infrastructure and clean energy collaboration," he added. "Chinese investment into the UAE has grown 16 percent, while the UAE's investment into China has surged by 120 percent, reflecting reciprocal trust and institutional confidence."

Looking forward, the undersecretary said he believes Abu Dhabi and China share highly complementary strengths across several future-focused sectors, paving the way for deeper bilateral cooperation in key areas including advanced manufacturing and industrial integration, clean and renewable energy, AI, life sciences as well as food and water security.

"There is a strong strategic alignment between Abu Dhabi's sector-focused clusters and China's global industrial strengths," he noted. "Initiatives such as the Smart and Autonomous Vehicle Industries Cluster, the AgriFood Growth and Water Abundance Cluster, and the Health, Endurance, Longevity and Medicine Cluster reflect Abu Dhabi's targeted approach to economic development. These clusters closely mirror China's leadership in advanced manufacturing, clean energy, biotech and smart logistics."

A flagship of Abu Dhabi-China collaboration is JOCIC Park, where nearly 40 Chinese firms have collectively invested over $10 billion in energy equipment, chemicals and smart manufacturing, helping Abu Dhabi significantly scale up its industrial capabilities.

"Abu Dhabi and China are not just trading partners, they are co-architects of a new global economic era, grounded in mutual respect and driven by a shared vision of future-ready growth," he said.

In 2024, the launch of the Qingdao Overseas Integrated Service Center marked the partnership's new phase, he said. The center serves as a gateway for Chinese enterprises to expand in the Middle East while giving Abu Dhabi companies access to Chinese technology and expertise. Priority areas include high-end manufacturing, new energy, advanced materials and information technology.

"Abu Dhabi is rapidly expanding its innovation ecosystem and views China as a key strategic partner in the development of future-oriented, technology-led industries," he said. "The partnership potential spans a wide range of priority sectors, starting with AI and advanced technologies."

Abu Dhabi, home to the world's first graduate-level AI university — the Mohamed bin Zayed University of Artificial Intelligence — is actively pursuing joint AI research initiatives with Chinese institutions to apply AI in areas including healthcare, energy, urban planning and language processing.

The emirate is also pushing into smart cities, urban innovations and the mobility sector, with opportunities for Chinese firms in 5G-enabled systems, internet of things applications, electric vehicles and battery technology. In fintech and digital finance, Abu Dhabi sees scope for Chinese companies to work alongside Abu Dhabi counterparts in cross-border payment solutions, e-KYC (know your customer) systems, and digital asset products tailored to emerging markets.

"Abu Dhabi presents a future-ready environment rooted in innovation, where Chinese enterprises and institutions can collaborate not only for shared economic benefit, but also to codevelop global benchmarks and breakthrough technologies that address pressing development challenges across sectors," he said.