Follow the trade, investment and partnerships bringing China and the UAE closer together.
An analysis published by Modern Diplomacy examines how Gulf sovereign wealth funds navigate emerging Asian markets amid changing interest rates. According to Global SWF data, about 45 percent of Middle East sovereign capital deployed in 2026 targeted the US, while 10 percent went to China and Hong Kong. Gulf investors are balancing long-term Asian partnerships against broader global allocations.
Record crude tanker freight rates have made shipments of US crude oil to Asia economically unviable, with charter rates from the US Gulf of Mexico to China reaching $80 million for a very large crude carrier. In response, Asian refiners are switching to alternatives including UAE Murban crude, which has traded at an estimated $2 per barrel delivered discount compared with West Texas Intermediate. The shifting demand caused Murban's cash premium over Dubai quotes to rebound above $11 per barrel.
Spot container shipping rates from China to the United States have peaked after surging over 330 percent since late February amid the Strait of Hormuz crisis, according to Xeneta data. The market is stabilizing as alternative logistics routes absorb disrupted regional flows, with approximately 40 percent of bypass shipments utilizing the UAE Port of Fujairah and offshore transfers.
UK-founded AI transformation firm Nextgen has moved its global headquarters to the UAE, setting up Dubai as its primary base. The company, which has previously expanded into China and India, cited growing demand among regional enterprises to scale AI operations into production. Nextgen reports having over 75 specialists across five offices and more than 200 AI use cases deployed.
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