BRICS Dialogue 2025: UAE Highlights Strategic Role In Economic Zones And Digital Trade Expansion

Hussain bin Ibrahim Al Hammadi, the UAE Ambassador to China, took part in the "2025 Dialogue on BRICS Special Economic Zones." This event was held alongside the 4th Global Digital Trade Expo in Hangzhou, China. During his speech, Al Hammadi emphasised the significance of this meeting amid rapid global economic changes and highlighted the crucial role of special economic zones in fostering trade, investment, and innovation.

Al Hammadi explained that these zones serve as ideal platforms for e-commerce and the digital economy. Companies operating within them enjoy competitive incentives such as a 5% value-added tax, a 9% corporate tax on net profits, full exemption from personal income tax, and unrestricted capital flows. These benefits make them attractive for businesses seeking growth.

The ambassador noted that the UAE is home to over 40 specialised free zones offering complete foreign ownership. These zones boast advanced infrastructure and flexible legislation that promote innovation and digital transformation. The UAE's extensive port network connects it to more than 400 ports worldwide, solidifying its status as a key player in global supply chains.

Highlighting bilateral relations, Al Hammadi underscored the strong economic partnership between the UAE and China. He stated that China is the UAE’s top trading partner, with non-oil trade reaching nearly US$90 billion in 2024. Additionally, he mentioned that UAE investments in China doubled to US$4.5 billion in 2023, while Chinese investments in the UAE rose to around US$9 billion.

The ambassador stressed that joining BRICS in 2024 marked a significant strategic milestone for the UAE's economic and diplomatic journey. This membership offers opportunities to enhance cooperation among Global South countries and expand trade and investment partnerships. The UAE's strategic location positions it as a natural link between BRICS markets and those of the Middle East.

Al Hammadi affirmed that the UAE is a vital hub for global talent, hosting over 200 nationalities in an open environment that enhances competitiveness. This diversity contributed to attracting record foreign direct investment inflows of US$45.6 billion in 2024, making the UAE the world’s tenth-largest investment destination.

China's Perspective on Digital Trade

Sheng Qiuping, China's Vice Minister of Commerce, remarked on global economic transformations driven by digital technology reshaping industrial chains and trade patterns at an unprecedented pace. He stated that developing digital trade is crucial for China's high-quality development and serves as a key path for international cooperation to address common challenges.

The dialogue served as an effective platform for exchanging successful experiences among BRICS countries' free zones. It explored opportunities for integration and building new cooperation networks to strengthen digital trade and expand innovation horizons.

The ambassador reiterated that the UAE is ready to share its expertise in developing special economic zones which drive sustainable economic growth. He highlighted how these factors contribute to making the UAE an attractive destination for foreign direct investment.

With inputs from WAM