Global SWF data reveals sovereign wealth funds invested $14.2 billion into China and Hong Kong in early 2026, led by UAE entities. Separately, the UAE Cabinet issued Decision No. 149 of 2026 revising VAT input tax apportionment rules.
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's outbound direct investment into the UAE reached $2.6 billion, more than tripling from the previous reporting year, according to the UAE-China Chamber of Commerce. Bilateral non-oil trade surpassed $100 billion as Chinese financial institutions expanded their presence in the Dubai International Financial Centre. Multiple Chinese energy companies and healthcare delegations also advanced bilateral commercial engagements.
Abu Dhabi has expanded container terminals and oil storage at the Port of Fujairah under its 'Zero Hormuz' infrastructure initiative to secure direct trade corridors to China outside the Strait of Hormuz. Meanwhile, Dubai Chambers and the Greater Bay Area Importers and Exporters Association unveiled the delegation and attendee lineup for the 2026 Dubai Business Forum – China in Shenzhen. Over 90 Dubai officials and senior executives, alongside more than 600 registered Chinese companies, are confirmed to participate in the bilateral event.
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