- The economic ties between the UAE and China, especially UAE-Shanghai, have been very strong. Shanghai contributes over 20% to China’s total trade with the UAE. Yet, the bilateral trade was hit by the international financial crisis and world economic recession.
- The export value dropped significantly from US$5,435 million in 2008 to US $3,926 million in 2009. However, the impact did not last long. Bilateral trade was quickly rebounded in 2010 and exceeded pre-crisis level in 2011. In 2011, the trade volume between the UAE and Shanghai reached to US$5,666 million, of which export was totaled at US$5,244 million and import was totaled at US$422 million.
- The main trading commodities of the UAE and Shanghai include office machine & auto data processing, high-tech product, clothes, spinning & fabric and semiconductor, mineral product and plastic of initial shape.
- Sharing is an important theme in UAE-Shanghai relations. In 2010, Abu Dhabi Department of Economic Development organized Abu Dhabi-China Economic and Trade Forum in Shanghai. Bankers, decision-makers, renewable energy specialists and heads of investment houses of the two countries shared development experiences and investment opportunities in their respective fields. The participant estimated that China and UAE’s trade value would reach to US$ 100 billion dollars in 2015.
- The official exchanges between the UAE and China in 2011 and 2012 have supported the national strategy of establishing Shanghai an international shipping centre and an international financial centre.
- In April 2011, the CEO of DP World met with Mayor Han Zheng, both parties exchanged views on the ongoing economic crisis and their development.
- In May 2011, the CEO of Dubai International Financial Centre (DIFC) led a delegation to Shanghai and met with officials of Pudong Financial Services Bureau (PFSB), both parties exchanged views on future cooperation.
- In return, Mr. Xu Lin, Member of Standing Committee of CPC Shanghai Committee & Secretary of CPC Pudong Committee, led a delegation to the UAE in September the same year. The visit was aimed to reinforce the bilateral cooperation in the financial field.
- DIFC and PFSB signed Memorandum of Understanding (“MOU”), with special focus on enhancing program recognition, The MOU also covers collaboration in education and research programs, as well as co-hosting workshops, seminars and conferences etc. to facilitate the exchanges between companies in the UAE and Shanghai.
- In March 2012, as an extension of the official visit to China by H.H. General Sheikh Mohammed bin Zayed Al Nahyan, Crown Price of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces, Abu Dhabi government delegation of economy and trade visited Shanghai. The delegates included officials from key government bodies of Abu Dhabi. The government delegation met with the key leaders of Shanghai Municipal Government and toured a number of important companies in the city.
- In September 2012, to strengthen the friendly ties between Dubai and Shanghai, Dubai Municipality sent a delegation to Shanghai, The delegation briefed the local leaders a number of key projects in Dubai. Both sides also exchanged views in their respective fields.
- The UAE and Shanghai’s relations have not been limited in the trade of consumable products, but also in two-way investment cooperation.
The UAE's investment in Shanghai
- Borouge, an Abu Dhabi National Oil Company (ADNOC) Group subsidiary, has set up a manufacturing plant and a sales office in Shanghai. The Shanghai facility currently has a capacity of 50,000 tones when it began production in early 2010.
- The UAE has also been very active in Shanghai’s financial and investment sectors. Headquartered in Abu Dhabi, the Union National Bank (UNB) has established a representative office in Shanghai. In addition, National Bank of Abu Dhabi (NBAD) has established its 1st presence in mainland China by opening a representative office in Shanghai.
- Emaar is the first Middle East real estate development to establish an office at Shanghai in 2006. Emaar signed a MoU with the Shanghai China-News Enterprise Development Ltd., a subsidiary of People's Daily Shanghai's branch, to explore mixed-use property and infrastructure development projects in key Chinese cities.
- In addition, DP World and Jumeirah Group both have investment in Shanghai.
- Istithmar, the investing arm of Dubai World, set up an office in Shanghai in 2007 and is part of the INTEX-Shanghai, an exhibition centre located at Hongqiao that a newly-developed hub for communications.
- In order to promote and support business and tourism between the two countries, both Etihad Airways and Emirates Airlines operate daily flight between Shanghai and Abu Dhabi, Dubai.Abu Dhabi Tourism Authority (ADTA) and Dubai Department of Tourism and Commerce Marketing (DTCM) have established presences in the city.
Shanghai’s investment in the UAE
- Chinese investments in the UAE are boosted by the ‘Zou Chu Qu’ strategy launched by the government to help Chinese enterprises integrate into the world market.
- Baosteel Corporation, the China's largest high-end steel producer based in Shanghai, is one of them. In January 2007,Baosteel established its Middle East headquarter in Jebel Ali Free Zone and was engaged in selling steel tube products to MENA region, as well as the Europe.
- UnionPay, the Shanghai-headquartered bank card services provider, opened a representative office in 2009. Since then, the application range has been expanding and service capability has been improving. UnionPay cardholders could easily use UnionPay cards at local ATMs and merchants in the Emirates.
- Real estate is an emerging area for the Chinese private investors, who invested in Dubai’s ‘The World’ project and Ras-Al Khaimeh.
