Dubai Deepens China Investment Push Across AI and Advanced Manufacturing

Dubai is intensifying its commercial and investment engagement with China, with new emphasis on artificial intelligence, advanced manufacturing, fintech, logistics, digital infrastructure and smart mobility.

The strategy was highlighted during the Dubai Business Forum - China, held in Shenzhen on 14 October, which brought together 854 Chinese investors and business leaders alongside 112 senior representatives from Dubai's public and private sectors. It was the largest overseas business delegation ever led by Dubai Chambers.

The forum focused on moving the Dubai-China relationship beyond established trade flows and toward deeper investment, technology partnerships and international expansion.

According to Dubai Chambers, non-oil trade between Dubai and China increased from AED 166.4 billion in 2016 to approximately AED 363.5 billion in 2025, representing growth of 118.4%. Between 2024 and 2025 alone, bilateral non-oil trade increased by almost 23%.

China is now Dubai's largest global trading partner, providing an established commercial foundation for a broader investment relationship.

Dubai attracted more than 300 foreign direct investment projects from China between 2016 and 2025, with total capital exceeding AED 24.6 billion. The pace of investment increased sharply in the most recent period. Chinese FDI capital into Dubai rose from approximately AED 1.2 billion in 2024 to more than AED 3.4 billion in 2025, almost tripling within one year.

The latest investment discussions indicate that Dubai is seeking to channel more of this capital into sectors linked to the future economy rather than limiting the relationship to conventional trade and distribution.

Advanced manufacturing featured prominently in the discussions between Dubai and Chinese business leaders. China has extensive capabilities in areas including electric mobility, industrial technology, robotics, smart manufacturing and advanced supply chains.

Dubai, meanwhile, is positioning itself as a platform from which those companies can establish regional operations, access Gulf and wider Middle Eastern markets and connect with international trade corridors.

Forum discussions specifically examined two-way investment opportunities in advanced manufacturing, AI, fintech and digital infrastructure. The emphasis is therefore increasingly on attracting companies that bring technology, production capability and intellectual property, rather than merely importing finished products into the UAE.

Another important element of the strategy is Dubai's role as a location where emerging technologies can be tested and deployed in real operating environments. Specialised sessions at the Shenzhen forum examined Dubai's potential as a real-world testbed for city-wide AI applications, as well as the development of autonomous mobility technologies within regulatory and infrastructure frameworks designed to support innovation.

Chinese technology companies are increasingly interested in markets where products can move from development to demonstration and commercial deployment relatively quickly. This is particularly relevant for companies operating in fields such as:

• artificial intelligence;

• autonomous mobility;

• robotics;

• smart logistics;

• digital payments;

• advanced air mobility; and

• connected infrastructure.

For such businesses, the attractiveness of a market depends not only on demand but also on regulatory access, infrastructure, partnerships and the ability to conduct live testing.

The number of Chinese companies registered as active members of Dubai Chamber of Commerce reached 6,650 by the end of September 2026, more than three times the number recorded in 2016. More than 3,830 of these companies operate within trade and services, accounting for approximately 58% of active Chinese Chamber members. The figures illustrate that Dubai is already functioning as a commercial base for a large Chinese business community.

The next stage of the relationship appears to be focused on increasing the number of companies using Dubai for regional headquarters functions, technology deployment, investment and market expansion.

Artificial intelligence featured heavily throughout the Shenzhen forum. Dubai Chambers is currently training 14,000 private-sector companies in Agentic AI as part of a broader programme designed to increase technology adoption across Dubai's business community. The longer-term programme aims to support more than 295,000 private-sector companies and develop 100 specialised AI assistants over two years. While this programme is not specifically limited to Chinese businesses, it forms part of the ecosystem Dubai is presenting to international technology investors.

Forum discussions also examined the infrastructure required for an AI economy, including advanced computing capacity, smart infrastructure, digital ecosystems and specialist talent. For Chinese technology businesses considering expansion into the Middle East, this creates a broader proposition combining market access with an increasingly technology-oriented local business environment.

Dubai's transport and logistics infrastructure continues to form an important part of its proposition to Chinese companies. Forum sessions examined the role of ports, airports, digital trade systems and AI-powered logistics in developing faster and more efficient corridors connecting Asia, the Middle East and global markets.

This is particularly relevant to manufacturers. A manufacturing business entering the UAE may require more than a local sales entity. Its operating model can include regional warehousing, distribution, spare-parts logistics, customer support, technical services, assembly, product testing and eventually local or regional production. Dubai's value proposition therefore rests partly on its ability to support that wider operational structure.

The strategic direction emerging from the Shenzhen forum suggests a shift in how Dubai is approaching Chinese companies. The objective is not simply to encourage businesses to obtain a UAE trade licence and sell into the local market. Dubai is seeking companies that can use the emirate as a platform for:

• regional and international expansion;

• technology development and deployment;

• manufacturing and industrial investment;

• access to capital;

• cross-border trade;

• product testing;

• logistics operations; and

• partnerships with government and private-sector organisations.

This is important for international companies evaluating the UAE. The commercial question is increasingly not simply whether a business should “enter Dubai”, but which functions of the international business should be located in Dubai and how the UAE entity should support the group's broader regional strategy.

NUR Advisory Note

The Dubai-China investment relationship is relevant beyond Chinese companies alone. It reflects a broader shift in UAE market entry, particularly for technology and manufacturing businesses.

International companies considering Dubai should increasingly assess the UAE as an operating platform, rather than treating company formation as the end objective.

For manufacturers and technology companies, a market-entry review should consider:

• whether the UAE entity will function as a sales office, regional headquarters, distributor, testing operation or manufacturing base;

• appropriate mainland, free zone or industrial jurisdiction;

• import and customs requirements;

• warehousing and logistics;

• product approvals and certification;

• intellectual property protection;

• staffing and specialist visa requirements;

• technology-testing permissions where applicable;

• tax and transfer-pricing implications;

• local distribution or commercial agency arrangements; and

• future expansion into Saudi Arabia and other GCC markets.

For advanced manufacturing companies in particular, jurisdiction selection should be driven by the actual operating model.

A company planning regional distribution, assembly, manufacturing or industrial activity will require a different structure from a technology company entering Dubai primarily for software development or commercial representation.

The Shenzhen forum therefore provides a useful indication of Dubai's next investment priority. The emirate is seeking a larger role in the international operations of Chinese businesses, particularly where manufacturing capability, advanced technology and regional market access intersect.