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The Economic Partnership Agreement between the UAE and the Eurasian Economic Union officially took effect on 6 October 2026. The pact eliminates or lowers tariffs on over 86 percent of tariff lines, covering about 96 percent of traded goods value. Non-oil bilateral trade reached $33.6 billion in 2025 and is projected to reach nearly $50 billion by 2032.
Chinese direct investment in the UAE surpassed $12 billion in 2025 as tech firms like Alibaba Cloud expanded data center and AI services. Meanwhile, U.S. policies conditioning access to advanced AI chips on the removal of Chinese core network hardware require Gulf states to navigate conflicting technological relationships. In the UAE, active Chinese technology projects grew to 81 under the Digital Silk Road framework.
China Eleventh Chemical Construction Company has secured two civil works and site facility packages for the 890MW Duqm power project in Oman. The $910 million combined-cycle gas turbine development is being built by a consortium that includes UAE-based Etihad Water and Electricity. Commercial operations at the Special Economic Zone at Duqm are scheduled to begin in 2029.
China's outbound direct investment into the UAE reached $2.6 billion, more than tripling from the prior reporting year. Cumulative Chinese FDI stock in the Emirates rose to $12.47 billion, alongside bilateral non-oil trade surpassing $100 billion. The influx comes as Chinese enterprises, including China Securities, JINGDONG Property, and Momenta, expand operations in the UAE.
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