Research

Industry News

Fitch: Weak Domestic Demand May Constrain China’s Near-Term AI Economic Gains

Artificial intelligence investments may not deliver broad economic gains for China in the near term due to weak domestic demand and limited monetization, according to Fitch Ratings. While policy is promoting AI adoption across various sectors, intense competition and early-stage commercialization continue to limit financial returns. Fitch noted that AI could reinforce existing divisions between export-oriented sectors and domestic businesses facing constrained credit conditions.

China–UAE News

Saudi Central Bank Concludes mBridge Role Amid China Cross-Border Payment Initiative

Saudi Arabia announced on September 19, 2026, that it had completed its participation in the China-led mBridge CBDC initiative over a year prior. The Saudi Central Bank stated its involvement was limited to the proof-of-concept phase finished in May 2025. An analysis by Small Wars Journal noted that technical participation in emerging payment systems does not ensure long-term geopolitical alignment.

China–UAE News

UNCTAD Report: UAE Attracts $48 Billion FDI as China Investments Surge

GCC foreign direct investment inflows rose 18 percent to $99 billion in 2025, with the UAE securing approximately $48 billion, according to UNCTAD. China and India were highlighted as key rapidly growing sources for industrial and technology investments in the region. Outward GCC investment also climbed 11 percent to $130 billion.

Policy & Legal Updates

Smoke Free Sweden Urges UAE to Ease Nicotine Alternative Regulations

A new research report by Smoke Free Sweden suggests the UAE could accelerate anti-smoking progress by incorporating tobacco harm reduction alongside existing regulations. While the UAE reduced adult smoking to 11.1% by 2024, Sweden lowered daily smoking to 5.3% through wider access to alternatives like snus, vapes, and nicotine pouches. The authors recommend aligning UAE taxation and regulatory scrutiny with the relative risk of smoke-free products.