China–UAE News

Gulf Sovereign Wealth Funds Allocate 10 Percent Deployed Capital to China

A research report by Modern Diplomacy indicates that Gulf sovereign wealth funds deployed 10 percent of their 2026 capital into China and Hong Kong, compared to 45 percent directed toward the United States. Institutional investors including Abu Dhabi's Mubadala, Saudi Arabia's PIF, and the Qatar Investment Authority continue targeted exposure in Chinese technology, electric vehicles, and renewable energy sectors. The funds are balancing long-term Asian partnerships against global macroeconomic variables and tightening technology investment regulations.

China–UAE News

NMDC Group Inaugurates AED 618 Million Dredger Built in Nantong, China

UAE-based NMDC Group has inaugurated its new heavy-duty cutter suction dredger, the Abu Al Bakhoush, in Nantong, China. Constructed by Jiangsu Haixin Shipping Heavy Industry under an AED 618 million ($168.3 million) contract, the 148-metre vessel expands NMDC Group's fleet to more than 170 marine assets.

Policy & Legal Updates

UAE Implements Mandatory Supplier Due Diligence for Input VAT Recovery

Effective 1 October 2026, holding a valid tax invoice alone is no longer sufficient to recover input VAT in the UAE under FTA Decision No. 13 of 2026. Businesses must perform structured due diligence on suppliers and transactions to avoid denial of VAT deductions linked to supply chain evasion. Transactions over AED 375,000 on a rolling 12-month basis trigger enhanced verification requirements, including bank confirmation letters.

Policy & Legal Updates

Arbitration Panel Examines China-UAE Cross-Border Investment and Legal Frameworks

The South China International Arbitration Center Hong Kong convened a legal panel exploring investment mechanisms between China, Hong Kong, and the Gulf. Practitioners highlighted a transition among Chinese firms from initial inquiries to formal corporate incorporation and compliance in the UAE. The discussion also addressed commercial dispute resolution and regulatory risk management.