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China Direct Investment in UAE Jumps to 2.6 Billion Dollars in 2025

Chinese direct investment across the MENA region doubled to $4.8 billion in 2025, driven largely by capital inflows into the UAE. Net direct investment in the UAE grew 237.7% to $2.6 billion, raising China's total investment stock in the country to $12.47 billion. The UAE now holds more than 40% of China's investment stock in the MENA region and receives over 50% of its new capital flows.

UAE and Chinese officials at the opening ceremony outside the China Pavilion at Expo 2020 Dubai
Photo: Alhurra

Official outbound investment data published on September 23, 2026, by three Chinese agencies including the Ministry of Commerce, revealed that Chinese direct investment across 17 of 23 countries in the MENA region doubled in 2025 to $4.8 billion. Globally, China's foreign direct investment expanded by 11.1% year-over-year. The report noted that 2025 figures were not clearly provided for Iran, Iraq, Lebanon, Somalia, Syria, or Yemen.

The United Arab Emirates served as the primary driver of this regional expansion. Chinese net direct investment in the UAE increased by 237.7%, rising from $770.1 million in 2024 to $2.6 billion in 2025. This inflow added more than $3.55 billion to China's cumulative asset position in the UAE, lifting total investment stock by 39.9% to $12.47 billion.

According to Securities Times as cited in the report, significant portions of the UAE investment went toward Abu Dhabi's Khalifa Port, cloud computing and data centers including Huawei's 5G infrastructure, manufacturing, and renewable energy ventures involving LONGi and JinkoSolar. The UAE currently accounts for more than 40% of China's MENA investment stock and over 50% of new annual capital flows to the region.

Elsewhere in the region, Saudi Arabia remained China's second-largest asset base, recording $574.9 million in new investment for a total stock of $4.26 billion. In North Africa, net annual direct investment rose in Egypt to $283.6 million, in Morocco to $177.42 million, and in Tunisia to $78.98 million. Conversely, capital flows fell in Oman, Bahrain, and Israel.

Sources

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