"Some Chinese enterprises only regard Abu Dhabi as an export hub. In actuality, Abu Dhabi and Mastdar City Free Trade Zone is more than just a product export platform; they are also regional development bases connecting the Middle East, Africa, and other markets." Hamza Abu Elgasim, strategic market growth head of Mastdar City Free Trade Zone, told Observer Network.
In recent years, the UAE has been accelerating its energy transition and economic diversification. Masdar City, located in Abu Dhabi, the capital of the UAE, has positioned itself as a leading platform for clean energy, artificial intelligence, and cutting-edge research. It has become one of the most important centers in this field. Currently, Chinese innovative companies in the fields of new energy and artificial intelligence are rapidly expanding their presence in the Middle East market. With the establishment of Chinese offices, Masdar City will further provide localized support for Chinese enterprises entering the Middle East market.
Photo provided by Hamza Abu Elgasim, interviewee
Hamza introduced that in the early days, Chinese companies entering the UAE mainly focused on traditional sectors such as logistics and trade. In the next stage, technological innovation and strategic investment are expected to become new growth directions, which are highly aligned with the core industry development objectives of the Masdar City Free Trade Zone. Currently, we believe that Chinese companies should focus on three key areas: SAVI, artificial intelligence, and renewable energy.
In the field of renewable energy, China has strong technical and industrial advantages in areas such as electric vehicles and solar panels. The Middle East is one of the regions with rapid development in renewable energy worldwide. The technical experience and advantages of Chinese enterprises match the growing needs of the Middle Eastern market, which is expected to promote more rapid and efficient scale development of these enterprises. In the field of artificial intelligence, China also has significant capabilities. The Masdar City Free Zone has the Mohammed bin Zayed Artificial Intelligence University (MBZUAI) – the world’s first university dedicated to graduate education in artificial intelligence, which can provide talent support for artificial intelligence companies, including those from China. In the area of SAVI, Masdar City Free Zone is also one of the few regions in the world that utilize autonomous vehicles and Personal Rapid Transit systems (PRT). Chinese enterprises also have a solid foundation in this field.
"If the company only views Abu Dhabi as an export center, it will face major challenges. However, if the company considers it a regional headquarters and operational base, it can help recruit local talent, set up regional managers, and establish a localized operational system, which would better enable the company to integrate into the Middle Eastern market and achieve long-term development.” Hamza said.
Hamza stated that Masdar City is willing to explore the establishment of structured funds in areas such as life sciences, artificial intelligence, and the automotive industry. There is significant room for cooperation between China and Arab countries in the field of green investment and financing. China has established one of the world’s leading green financial systems. Abu Dhabi is also developing its own green financial system through the Abu Dhabi Global Market (ADGM). The work carried out by the Green Finance 60 Forum on green finance and sustainable industries aligns with the future development direction of Abu Dhabi. We look forward to further exchanges in these areas and exploring diversified cooperation pathways.
Mentioning the establishment of the China Office at Masdar City Free Zone, Hamza said that prior to this, he had been aware of and understood various practical needs of Chinese companies expanding into the UAE market. For Chinese investors, this is a market located about 6000 kilometers away, with different languages, cultures, and business environments. Concerns about the unknown and apprehension about entering new markets are often the first and most difficult obstacles that companies face. The China Office at the Free Zone can help companies reduce the uncertainties associated with entering the market through Chinese-language services, communication in the same time zone, and local expertise. Companies can obtain information on business licenses, local regulations, and visa procedures in advance, even before officially establishing their companies, and receive corresponding support.
