The latest $3.4 billion UAE-China deal will position Dubai well in the One Belt One Road project where the emirate will be a major supply link to the global initiative and play an essential role in international trade by developing its logistics and shipping sectors, experts say.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Friday announced the historic agreement that will boost existing $53 billion bilateral trade to $70 billion next year. It will further strengthen the UAE’s Dh1.42 trillion economy, which is expected to grow at 3.8 per cent in 2020.
During Sheikh Mohammed’s visit to Beijing, major deals were signed and investments including the launch of 60 million square feet station at the new Silk Road in Dubai for Expo 2020. He also announced plans for a $1 billion ‘Vegetable Basket’.
Shahzad Ahmed, chairman and chief executive of Blue Ocean Group, said the UAE-China deal will boost the UAE economy as well as the shipping, logistics, transports and distributions sector of this region a lot.
“The 60 million square feet Traders Market that will be built opposite to Expo location which will include large logistics warehouses and wholesale retail outlets, will enhance export and import greatly,” he said.
Dubai already hosts the world’s largest Chinese product market outside China at Dragon Mart at the International City – home to more than 4,000 Chinese companies.
“The UAE has built itself with great expertise and resources. And its strategic position as a global business hub has given boundless opportunities to businesses like ours, to grow at a faster rate,” he said.
“One Belt One Road initiative will change the economic landscape of Asia and Europe and will have a profound impact in the global economy. It is important to be connected to this move. I am happy and very excited to know that we are going to be part of this initiative,” he said.
Sunil Paul Gomes, CEO of Gemini Property Developers, said the latest $3.4 billion announcement by UAE and China will strengthen Dubai’s position in the global map and Dubai will play a key role in the One Belt One Road initiative. This is good news for all of us as this will help the UAE economy to grow further, he said.
“Dubai already hosts the world’s largest Chinese product market outside China at Dragon Mart at the International City – home to more than 4,000 Chinese companies. We believe, these twin initiatives will boost global investment in to Dubai and that will have a knock-on impact on other sectors, as demand will grow,” he said.