UAE showcases strategic role in expanding economic zones

Hussain Bin Ibrahim Al Hammadi, UAE Ambassador to the People’s Republic of China, participated in the “2025 Dialogue on BRICS Special Economic Zones,” held on Thursday on the sidelines of the 4th Global Digital Trade Expo in Hangzhou, China.

In his speech during the dialogue, Al Hammadi stressed that the meeting comes at an important time, given the rapid transformations in the global economy and the growing pivotal role of special economic zones in supporting trade, investment, and innovation.

He noted that this dialogue represents an effective platform for exchanging successful experiences, exploring opportunities for integration among free zones in BRICS countries, and building new cooperation networks that contribute to strengthening digital trade and expanding the horizons of innovation.

He said, “The United Arab Emirates is fully prepared to share its pioneering expertise in the development of special economic zones, which have proven to be key drivers of sustainable economic growth.” Al Hammadi further pointed out that the UAE hosts more than 40 specialised free zones, offering 100 per cent foreign ownership, along with advanced infrastructure and flexible legislation that encourages innovation and digital transformation. He added that the UAE is commercially and logistically connected to the world through an extensive network of ports that links to more than 400 ports globally, reinforcing its position as a key hub in international supply and distribution chains.

He explained that these zones represent ideal platforms for e-commerce and the digital economy, where operating companies benefit from competitive economic incentives, including a value-added tax of 5%, a corporate tax of only 9% on net profits, full exemption from personal income tax, and no restrictions on capital flows.

He affirmed that the United Arab Emirates is a vital hub for global talent, home to more than 200 nationalities living in an open and diverse environment that provides a multi-skilled human base, enhancing companies’ competitiveness and their ability to expand and grow. He noted that these combined factors contributed to attracting record foreign direct investment (FDI) inflows of US$45.6 billion in 2024, positioning the UAE as the world’s tenth-largest investment destination.

In the context of bilateral relations, Ambassador Al Hammadi highlighted the depth of the economic partnership between the UAE and the People’s Republic of China, stressing that China is the UAE’s top trading partner, with non-oil trade between the two countries reaching nearly US$90 billion in 2024. He added that the UAE is China’s largest non-oil trading partner in the Middle East and Africa.

He pointed out that UAE investments in China doubled to reach US$4.5 billion in 2023, while Chinese investments in the UAE rose to around $9 billion-clear evidence of the mutual trust between the two sides.

He stressed that the UAE’s accession to the BRICS group in 2024 represents a significant strategic milestone in its economic and diplomatic journey, viewing this membership as an opportunity to enhance cooperation among the countries of the Global South, expand trade and investment partnerships, and deepen joint efforts to achieve sustainable development. He also pointed out that the UAE’s strategic location makes it a natural link between BRICS markets and the markets of the Middle East.

For his part, Sheng Qiuping, Vice Minister of Commerce of China, said, “The global economy is currently undergoing profound transformations, as digital technology is reshaping global industrial chains and trade patterns at an unprecedented pace. The development of digital trade is not only an internal requirement for China to promote high-quality development, but also a key path for cooperation with all countries to confront common challenges and build a prosperous future.”

A day earlier, the Dubai Integrated Economic Zones Authority (DIEZ) achieved record growth in its total trade across the three economic zones in 2024, reaching a value of Dhs336 billion, a 19% increase compared to 2023. DIEZ also achieved a 13.7% share of Dubai’s non-oil trade, its highest-ever contribution to date, sustaining growth for the fourth straight year.

Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, hailed DIEZ’s 2024 results saying, “Dubai continues to consolidate its role as a major trading centre at the heart of global commerce, in line with the strategic vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. DIEZ’s 2024 performance is not only a testament to our city’s robust economic fundamentals but also to its ability to constantly innovate, unlock new avenues for growth and transform challenges into opportunities.

WAM