- May 1, 2019
- Posted by: Waqas Siddiqui
- Category: Business & Economy
China to invest $3.4bn in Dubai’s logistics and trading sectors
On the sidelines of China’s Belt & Road conference in Beijing, H.H. Sheikh Mohammed, the Vice President and Prime Minister of UAE and Ruler of Dubai launched two mega projects in collaboration with China to build a ‘traders market’ in Dubai.
Traders Market Project – Dubai
As a part of the initiative, China will be investing Dh 12.5 billion (US$ 3.4 bn) in two mega projects, primarily trading facilities in Dubai. The first will be the construction of 60 million Sq. Ft. facility to store Chinese products that will be later shipped to the global markets.
The project will be worth Dh 8.8 billion (US$ 2.4 bn), built along Shaikh Mohammad Bin Zayed Road opposite to Expo 2020 site and will include both retail and wholesale outlets, enhancing regional and international trade of Chinese products from Dubai.
Vegetable Basket Project – Dubai
The second mega project will be the construction of Dh 3.67 billion (US$ 1 bn) ‘vegetable basket’ project in Dubai. The project will oversee the construction of importing, processing, packing and re-exporting facility for agricultural, marine and livestock products.
Last week, Dubai Economic Department (DED) projected GDP growth of 2.1% in 2019 and 3.8% in 2020. DED also indicated improvements in Financial services and trade (retail & wholesale) sectors with latter projected to grow by 6.2% in 2020. New investments from China are likely to further improve the growth projections and overall health of Dubai’s trade (retail & wholesale) sector.
Investment Opportunities in Dubai and UAE
UAE has also developed world-class infrastructure in the form top quality airports, hotels, public facilities, and economic zones, which furthers its evolution as an international business destination. A robust existing framework in conjunction with such attractive rules ensures sustained economic growth of the country. It is expected that more international companies will come to UAE to leverage its upcoming infrastructure and favorable business environment to do business.
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