Number of Chinese companies in DMCC free zone doubles over the last 5 years

Number of Chinese companies in DMCC free zone doubles over the last 5 years 

By: Abu Dhabi SME Hub
News

Today, DMCC is home to 703 Chinese businesses, representing nearly 12% of the Chinese companies in the UAE.

Dubai Multi Commodities Centre (DMCC), a prominent UAE free zone with a focus on the trade of commodities and enterprise – has announced a doubling of Chinese companies in its jurisdiction, adding on average more than two Chinese companies a week. Today, DMCC is home to 703 Chinese businesses, representing nearly 12% of the Chinese companies in the UAE. This growth is underpinned by a long-standing diplomatic and economic relationship between the UAE and China.

DMCC has played a vital role in strengthening the UAE–China trade relations and in enhancing the presence of Chinese companies in Dubai. Since its establishment, DMCC has signed a wide range of agreements with public and private entities in China to boost the bilateral trade relationship, and hosted roadshows and webinars to facilitate the international expansion of Chinese companies.

DMCC has created an integrated infrastructure that caters to the Chinese business community, including the establishment of the Yingtian Chinese Business Centre DMCC in 2017 to aid Chinese companies wanting to set up a company in Dubai. In addition, DMCC’s website was also launched in Mandarin to further increase the ease of doing business in Dubai. In 2020, a China Service Centre opened its doors in Almas Tower, DMCC’s headquarters, with Mandarin onboarding support across all client touchpoints, while a representative office in Shenzhen was inaugurated to bring DMCC to the doorstep of Chinese businesses.

Li Jian, General Manager of Dongfang Electric International Corporation, a Chinese DMCC member company, said: “Advantageous geographical location, developed social and economic infrastructure, and business-friendly environment has created DMCC's strong competitiveness. During the process of establishing a branch office in DMCC, we felt that the fully digital registration process was simple and effective. The DMCC team promptly assisted us and provided professional and efficient support. The successful registration and operation of Dongfang Electric International Corporation DMCC branch will continue to help our business thrive in the Middle East and the surrounding regions.”

The UAE and China have historically shared great diplomatic and economic relations, working closely towards mutual goals and principles. The UAE is China’s biggest trading partner in the Arab World. In 2021, China also ranked first as the UAE’s biggest trading partner, accounting for 11.7% of the UAE’s total foreign trade, and the value of non-oil trade exchange between the two countries amounted to AED 212 billion, a growth of 27% from 2020 and 19.8 per cent from 2019. China remained the UAE's top trading partner during the first quarter of 2022, with bilateral trade between the two countries at AED 57 billion. The trade value is on track to expand to USD 200 billion by 2030.

This accelerated growth is in part due to the UAE being among the first countries to join the Belt and Road Initiative and the comprehensive strategic partnership. As a result, the UAE is now the largest logistics hub for China in the Middle East and more than 60% of China's trade in the region now transits through the UAE.

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