Manufacturing base, not just a gateway: how Dubai's China ties are evolving

Dubai is moving beyond its traditional role as a logistics hub for Chinese goods, with a proposed power and energy equipment manufacturing park signalling a shift toward local production and deeper industrial ties with China, according to a report from the African News Agency (ANA).

The Dubai Multi Commodities Centre (DMCC) and Hong Kong Tinkam Capital signed a memorandum of understanding in July to explore the park, aimed at drawing Chinese firms in advanced manufacturing, green technology and energy – part of the UAE's Operation 300bn strategy to grow its industrial sector.

China's footprint in the UAE is already large, with more than 1,000 Chinese companies based at DMCC alone. 

But where Dubai's appeal has traditionally rested on trade and re-export – roughly 60% of Chinese trade passes through UAE ports to the wider region – a manufacturing push would let firms use the emirate as a production base instead.

The shift reflects a broader trend of Chinese companies internationalising production, with the UAE's geography and infrastructure well placed to capture it. In Abu Dhabi, China Southern Glass has already committed AED300 million to a glass manufacturing plant, expected to create 400 jobs.

ANA's report notes that success will ultimately be measured not by the number of factories built, but by whether the investment generates lasting local capability – skilled jobs, technology transfer and globally competitive products.