The second Belt and Road Forum for International Cooperation set to be held in Beijing on April 25-27 will be China’s most important diplomatic event of the year to be hosted on home soil. Over the last six years, 123 countries and 29 international groups have signed cooperation documents on jointly building the Belt and Road Initiative (BRI). But what has the BRI brought to those countries? China Focus has launched a series of in-depth dialogue column “BRI Ambassador Interview” jointly with DRTT Group and China Development Observation, to show you the most real thoughts of the ambassadors of Belt and Road countries and leaders of some international organizations and representatives in China. Today we have an exclusive interview with Mr. Ali Obaid Al Dhaheri, the ambassador of the United Arab Emirates (UAE) to China.

Since the establishment of diplomatic relations between China and the UAE in 1984, the two countries have maintained friendly and cooperative relations. In 2012, China and the UAE established a strategic partnership to further promote rapid development in trade, finance, energy, and many other fields. As a founding member of the Asian Infrastructure Investment Bank (AIIB), the UAE has actively responded to the Belt and Road Initiative and has become an important strategic trading partner for China’s overseas investment and contracting in the region of West Asia and North Africa due to its large and valuable export market.

Today, in the UAE’s pursuit of transformation and upgrading of economic structure, Ambassador. Ali Obaid Al Dhaheri said that the Belt and Road Initiative will be well integrated with the UAE’s “Post-oil Development” plan.

Close to 300,000 Chinese Live in the UAE

Sun Chao: How do you see the future of China-UAE relations? How can we further improve China-UAE relations?

Ali Obaid Al Dhaheri: Since 1984, the world has undergone significant economic, social, cultural and political shifts. Throughout that time, however, the UAE and China have continued to share a common goal of ensuring sustainable growth, stability, and prosperity at an ever-increasing pace. Trade is booming, cultural dialogue is blossoming, and citizens of both nations are increasingly travelling to each other’s countries. All the above benefits our two countries.

Like any relationship in the world, we must continuously work hard to maintain good relations between our two countries. We are expanding our partnership with mutual trust and benefits such as an increasing alignment on the regulatory front – Abu Dhabi’s and China’s financial regulators have agreed to facilitate cross-border activities and enhance regulatory collaboration by way of a currency swap agreement and the creation of a China-UAE Joint Investment Fund. This is just a small example of how we are continuing to explore more means of partnering with each other and expanding the horizons of our relationship.

That the UAE participated in the Belt and Road Initiative and events such as Chinese President Xi Jinping’s state visit to the UAE in July, 2018 show how far this relationship has come and how committed we both are. I can only see a brighter future for our two countries together.

Sino-UAE Non-oil Trade Has Increased to $58 Billion Dollars

Sun Chao: What is your expectation for the future of China-UAE economic relations?

Ali Obaid Al Dhaheri: This is a very good question. The partnership between our two countries continues to go from strength to strength and trade is growing as a result. In 2017, UAE – China trade grew to $53 billion dollars, an increase of 15% on the previous year and accounting for 14.7% of the UAE’s total foreign trade in 2017. We expect this trajectory to continue with the UAE and China non-oil trade exchange expected to rise to $58 billion dollars by the end of 2018. At present, the UAE accounts for 30% of China’s total exports to the Arab countries, and this figure is only set to grow.

The bilateral relations between our two countries will be further deepened and strengthened. For example, over 4,000 Chinese companies now operate in the UAE with major players and SOEs including China State Construction, China National Petroleum Corporation, and China COSCO Shipping, amongst others.

The attractiveness of doing business in the UAE is clear. The UAE is a natural gateway to access the Middle East and Africa’s diversifying economies, it is located on a strategic point within the Belt and Road Initiative, and presents a well-educated, outgoing workforce who possess an established track record of diversification.

Trade between our two countries has reached a level which was never dreamed of by our forefathers, but we must continue to work hard to keep growing and nurture the correct environment needed for it to flourish. So the future of our two countries is very bright. Our leaders trust each other, and our bilateral relationship will only grow and improve.

Synergy between the Belt and Road Initiative and the “Post-oil Era”

Sun Chao: The Belt and Road Initiative was raised by President Xi Jinping in 2013. Since then, the initiative has attracted great attention and gained support from home and abroad. How do you see this initiative?

Ali Obaid Al Dhaheri: China has always been one of the great trading nations and its history of exploration and global trade expansion is well documented. For instance, ancient Chinese porcelain has been excavated in the UAE, while Emirati pearls were transported to the Celestial Kingdom centuries ago.

The Belt and Road Initiative continues the historical glory of China since ancient times. The UAE’s commitment to the BRI has been evident from the very beginning. The UAE is a founding member of the Asia Infrastructure Investment Bank, and we remain fully committed to the central mission of joint undertaking of the BRI. Since the UAE joined the AIIB, Chinese investment into the UAE grew by 33% in 2015 alone.

This initiative started five years ago, and so much has been achieved during these years. At the same time, the UAE plays an important role in the BRI.

Currently, the UAE is planning for the post-oil era, and we are increasingly working with the Chinese government and companies involved in the BRI to continue actively diversifying the UAE’s economy to prepare for the post-oil era.

The initiative is a truly visionary idea which can unite people together around the world and strives for the one goal of common prosperity. Regional development imbalances and instability have always been the biggest problems affecting the prosperity and development of the world economy. So I strongly believe that the BRI will bring more stability to the world and more opportunities for cultural exchanges between people.

China-UAE Financial Cooperation Is a Win-Win Achievement

Sun Chao: The UAE is a country where direct cash payments in RMB are most favored in the region. How do you view China-UAE financial cooperation? What positive influence can RMB clearing bring to expand the China-UAE strategic partnership?

Ali Obaid Al Dhaheri: As the carrier of China’s economy, RMB has become one of the most important currencies to the world economy. Therefore, facilitating the use and exchange of RMB has the same positive effect on the growth and development of the world economy. With no doubt, the RMB clearing business settling in the UAE is very essential and of great value not only for the future of China, but certainly for the future of the UAE. I believe the China-UAE financial cooperation is a win-win achievement and will improve the development of bilateral relations.

The UAE Shares the Same Values and Beliefs Regarding the BRI

Sun Chao: The main priority of the BRI includes the “Five Connectivities”, which are infrastructure, finance, trade, policy, and people-to-people exchange. Infrastructure is the pillar of the “Five Connectivities”. Is there any infrastructure development plan to better engage in the BRI in the UAE?

Ali Obaid Al Dhaheri: Yes, certainly. We are engaged in the Belt and Road Initiative through our free zones, such as Khalifa Industrial Zone, logistics and facilities, and airport constructions, to name but a few. Another important area is the financial hub of the UAE. It contributes to the growth and development of the regional economy, as well as the Belt and Road Initiative.

It should be highlighted that the UAE shares the same values and beliefs regarding the BRI.

The author is the editorial board member of China Development Observation, Vice President of DRTT Group, and author of New Order: Ambassadors’ Views on the Belt and Road Initiative.