A rain of light falls from a giant dome, while steps facing the city’s skyline extend below sea level. Situated on Saadiyat Island, the Louvre Abu Dhabi sparkles particularly brightly on sunny days. As the first international, multidisciplinary museum in the Arab world, the monument brings together global collections from local, Central Asian, and European origins. Centered on themes such as time, trade, navigation, and religion, it showcases the intersection of civilizations.
To some extent, the museum can also be seen as a microcosm of the new identity Abu Dhabi and the UAE are shaping: a multifaceted symphony of modernity and tradition, the international and the local.
As Gulf nations collectively pursue economic diversification, the UAE—represented by Dubai and Abu Dhabi—is leading the charge in this area.
Dubai, the UAE’s most populous city, is often the first choice for Chinese enterprises venturing into the Middle East, thanks to its strong non-oil economy. Abu Dhabi, on the other hand, serves as the UAE’s capital and wealthiest emirate, underpinning the nation’s finances. Many have likened the differences between Abu Dhabi and Dubai to those between Beijing and Shanghai in China.
Winter, the mildest season in the Middle East, is also when many significant events are held.
In December 2024, the inaugural Abu Dhabi Business Week (ADBW) opened at the Abu Dhabi National Exhibition Centre. Co-hosted by the Abu Dhabi Chamber of Commerce and Industry (ADCCI), the Abu Dhabi Department of Economic Development (ADDED), and the Abu Dhabi Investment Office (ADIO), the event brought together guests to discuss themes such as cross-border manufacturing, family enterprises, startups, and artificial intelligence.
Shortly after ADBW, the second Abu Dhabi Finance Week (ADFW) was held at Abu Dhabi Global Market. From business to economics, energy to cryptocurrency, the flurry of events underscores Abu Dhabi’s ambitions to solidify its role as an international economic and business hub.
As the UAE’s primary oil producer, Abu Dhabi introduced its “Economic Vision 2030” in 2007, aiming to increase the share of non-oil industries to 64% of GDP. This ambitious framework includes projects like Masdar City, designed with sustainability in mind. In recent years, Abu Dhabi has shifted its focus toward fostering a “knowledge economy,” prioritizing technological innovation, AI, and digitalization.
As the self-styled “capital of capital,” how is Abu Dhabi leveraging its financial resources to drive sustainable development? Moreover, what role can Chinese enterprises play in this transformation, and where do the opportunities lie?
Spending money to attract money
Abu Dhabi’s ability to achieve its ambitious development goals rests on one key advantage: ample financial resources.
Within the Gulf, the UAE’s economic development stands out, thanks largely to Abu Dhabi. According to ADDED, Abu Dhabi’s economy grew 4.5% year-on-year in the third quarter of 2024, with non-oil GDP surging by 6.6%. This growth was driven by sectors such as transportation, construction, manufacturing, finance, and insurance, according to local statistics.
The emirate is effectively leveraging the capital accumulated from its oil economy through its sovereign wealth funds, which are among the most active in the world. As of October 2024, Abu Dhabi managed USD 1.7 trillion in assets, securing its position as the world’s wealthiest city, according to Global SWF. Notably, the Mubadala Investment Company alone invested USD 29.2 billion in 2024, a 67% increase from the previous year, overtaking Saudi Arabia’s Public Investment Fund as the most active sovereign wealth fund globally.
In September 2023, Mubadala opened its Beijing office, a move seen as a signal of increased Middle Eastern capital entering China. Over recent years, Abu Dhabi has been a significant player in the Chinese market. For example, the Abu Dhabi Investment Authority holds significant stakes in Chinese-listed companies across industries like energy, chemicals, and biomedicine. Mubadala’s investments include Didi, Xpeng Motors, Shein, and JD Industrials.
In a global capital market facing headwinds, more institutions and companies are looking to the Middle East for opportunities. Yet, Abu Dhabi’s well-defined investment goals, tied to its long-term economic vision, ensures that this is not a market for quick gains.
A case in point is Abu Dhabi’s calculated investments in new energy vehicle companies. In December 2023, CYVN Holdings, a UAE-based entity, invested USD 2.2 billion in Nio, and in October 2024, Nio announced a joint venture with CYVN to establish an R&D center in Abu Dhabi, dedicated to advancing autonomous driving and AI technologies.
In parallel, the UAE actively draws in foreign capital and enterprises. According to the “World Investment Report 2024” by the United Nations Conference on Trade and Development (UNCTAD), the UAE received USD 30.688 billion in foreign direct investment (FDI) in 2023, ranking second globally for FDI inflows. In 2024, the UAE climbed to eighth place on Kearney’s FDI confidence index, ranking just behind China among emerging markets.
The UAE is China’s largest export market in the Middle East and its second-largest trading partner in the region. From trade to investment, Chinese enterprises are increasingly active in the UAE. According to data recently shared by the UAE’s Deputy Minister of Investment, Chinese investment in the UAE grew by 16% in 2023, reaching USD 1.3 billion and accounting for 60% of China’s total investment in Arab nations. Meanwhile, UAE investment in China totaled USD 11.9 billion between 2003 and 2023.
The UAE’s moat
The UAE’s advantages stem from its position at the crossroads of Europe, Asia, and Africa, combined with a supportive policy environment and world-class infrastructure.
Abu Dhabi emphasizes creating a business-friendly regulatory framework, offering tax exemptions and allowing 100% foreign ownership. Initiatives like the Abu Dhabi Registration Authority simplify business registration and licensing while promoting transparency. These efforts are complemented by sector-specific programs, such as the Abu Dhabi Smart and Autonomous Vehicle Industry (SAVI) cluster, which has attracted leading Chinese companies like WeRide and Pony.ai.
Abu Dhabi has also developed into an international hub for education, entertainment, and finance. Saadiyat Island houses cultural landmarks like the Louvre Abu Dhabi and New York University’s Abu Dhabi campus, while Yas Island features sterling attractions including Ferrari World and the Yas Marina Circuit.
On the logistics front, Abu Dhabi continues to expand its transportation infrastructure. In 2023, the newly upgraded Zayed International Airport began operations, with Etihad Airways playing a central role. Meanwhile, Khalifa Port is home to the CSP Abu Dhabi Terminal, the first overseas greenfield project fully controlled by China’s COSCO Shipping. The port’s container throughput is projected to have surpassed 1.83 million twenty-foot equivalent units (TEUs) in 2024, representing a 35% year-on-year increase.
An oasis for Chinese enterprises
Much like the Louvre Abu Dhabi reflects global influence through its name, architecture, and exhibits, the broader Middle Eastern market, including Abu Dhabi, is carving out an international narrative shaped by its unique needs and aspirations. How can Chinese enterprises contribute to this evolving story? Which sectors in Abu Dhabi and the UAE hold the most promise?
According to Mohammad Ali Al Kamali, chief trade and industrial officer at the ADIO, the emirate is deepening ties with Chinese enterprises through mutual visits, consultations, and collaborative platforms. ADIO has established a presence in Beijing to assist businesses entering Abu Dhabi. Kamali emphasized that Abu Dhabi welcomes companies across all sectors, positioning itself as a gateway to wider markets.
Jasem Alawadhi, head of economic strategy oversight at ADDED, highlighted opportunities in energy transition, digitalization, autonomous driving, and electric vehicles. He noted that Abu Dhabi’s investments are targeted to align with its development priorities while ensuring returns for investors.
The UAE has outlined its preferred industries for foreign investment, including fintech, e-commerce, agriculture, education, logistics, manufacturing, renewable energy, and smart cities. Many of these areas align closely with the strengths of Chinese enterprises already operating in Abu Dhabi.
Historically, Chinese investment in the UAE has focused on oil, gas, infrastructure, and logistics. However, the pivot toward renewable energy, electric vehicles, autonomous driving, and artificial intelligence is unlocking new opportunities. For instance, in 2023, WeRide became the first company in the Middle East to secure a national autonomous driving license. By December 2024, its partnership with Uber launched a robotaxi service in Abu Dhabi, allowing users in select areas to book self-driving cabs.
These ventures make a case for Chinese tech companies to align their growth strategies with Abu Dhabi’s economic vision. Companies like WeRide have expanded partnerships following successful pilot operations and licensing, providing a model for other Chinese enterprises to follow.
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Opportunities and challenges intertwine
While the opportunities are abundant, businesses must also confront certain realities on the ground.
Despite its ambitious vision, Abu Dhabi’s development timelines often extend beyond expectations. Landmarks such as Zayed International Airport and Masdar City experienced significant delays before reaching completion. Manufacturing is gaining momentum as a focus area, yet the emirate’s supply chains remain in an early stage, with many upstream and downstream links still underdeveloped.
Cultural differences also call for thoughtful adaptation. Companies entering the region must adjust to slower operational rhythms and invest time in fostering trust. Han Xudong, founder of Abu Dhabi-based AI governance firm LibrAI, described the process as requiring patience: “The pace here is slow, but once you’ve established trust, word-of-mouth will drive growth.” It took Han more than a year to secure his first contract in the UAE.
For many Chinese enterprises, entering the Middle East is still an exploratory endeavor. Initial steps often center on market research and preliminary engagement. However, the competition is intense, with companies from the US, Europe, and Southeast Asia also vying for market share.
Noor Al Tamimi, a board member of ADCCI, encourages Chinese entrepreneurs to personally explore opportunities in the region, rather than relying solely on representatives. “Companies need to immerse themselves in local communities, understand the culture, and then take the leap into their business ventures,” she said.
As Abu Dhabi continues to shape its global economic narrative, Chinese enterprises have the opportunity to contribute to and benefit from this transformation. Achieving success, however, demands commitment, adaptability, and a long-term perspective.
Whether leveraging the UAE’s logistical strengths or aligning with its emphasis on knowledge-based industries, Chinese businesses can play a role in this burgeoning market. Yet, they must navigate the region’s distinct challenges—slower operational rhythms, underdeveloped supply chains, and cultural nuances—while competing on a global stage.
As Abu Dhabi’s diverse story unfolds, it beckons those ready to embrace its opportunities and overcome its challenges. For those willing to take the plunge, the Middle East promises a new chapter of growth, innovation, and collaboration.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Shi Yi for 36Kr.