In the wake of the Chinese Lunar New Year, Ahmed Jasim Al Zaabi, the Minister of the Abu Dhabi Department of Economic Development (ADDED), led a high-level economic delegation to ChinaThis was the first significant international visit for the Department this year, marking a pivotal moment in Abu Dhabi's outreach strategyOn February 20, during the Abu Dhabi Investment Forum held in Shanghai, Al Zaabi urged attendees to move beyond the stereotypical images of Abu Dhabi's skyscrapers and vast deserts, and to focus instead on the region's remarkable economic performance in recent years.

Recent data indicates that Abu Dhabi's GDP witnessed an impressive growth rate of 3.9% during the first three quarters of 2024, with the non-oil sector booming at an even more remarkable rate of 5.9%. The emirate has been placing particular emphasis on developments in renewable energy, artificial intelligence (AI), and manufacturing - sectors where China excels and where the potential for collaboration holds great promise.

Al Zaabi elaborated on what he referred to as the "Falcon Economy," a term that has emerged in response to Abu Dhabi's rapid economic expansionThe falcon, a critical cultural symbol within the UAE, has historically been associated with hunting and survival in the harsh desert environmentIt embodies resilience and a far-sighted approach, traits which parallel Abu Dhabi's strategic economic goals.

Abu Dhabi, the largest emirate in the UAE, serves as both its capital and the heart of its oil wealthHistorically, the oil and gas industry dominated the UAE's economic landscape, with approximately 95% of the nation's oil resources concentrated in Abu DhabiThis abundance has earned the emirate the title of the "golden goose" of the countryFor instance, the Abu Dhabi National Oil Company (ADNOC) is one of the three major national oil companies in the Gulf region, with production levels soaring to 4.85 million barrels per dayProjections suggest an increase to 5 million barrels per day by 2027, reinforcing Abu Dhabi's leadership in the global energy market.

During his opening remarks, Al Zaabi noted that the sovereign wealth fund of Abu Dhabi has amassed assets exceeding $1.7 trillion, firmly establishing the emirate as a pivotal financial center, aptly dubbed the "Capital of Capital." Among its most prominent entities are the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company

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The 2024 annual report from Global Sovereign Wealth Funds indicated that Mubadala has surpassed the Public Investment Fund (PIF) of Saudi Arabia, becoming the most active sovereign wealth fund of the year.

In 2024 alone, Mubadala announced external investments totaling over $57.6 billion, with a significant portion directed toward the burgeoning AI industryForecasts indicate that Abu Dhabi is banking on AI to become the "new oil" in terms of economic fuel.

It is worth noting that Abu Dhabi's investment in AI is not simply a responsive measure to market trends but a long-term strategic vision formulated as early as October 2017 when the landscape for AI was still emergingThe goal is to position the UAE as a global leader in AI by 2031, implementing this technology across various domains including energy, transportation, tourism, and education, thereby enhancing governmental efficacy and promoting economic growth and societal advancement.

Hareb Al Mheiri, head of the Investor Growth Division at the Abu Dhabi Investment Office, shed light on ongoing investments in AI talentIn 2019, the emirate established the world's first university dedicated solely to AI, the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), employing prominent international faculty while also waiving tuition for graduate students and providing scholarshipsThis initiative aims to attract outstanding talent to Abu Dhabi.

Today, AI applications have permeated daily life in Abu Dhabi, where residents benefit from AI-driven services that expedite tax, visa, and business license transactionsThe UAE's General Directorate of Residency and Foreigners Affairs has implemented an intelligent visa application platform that utilizes AI to streamline the application, approval, and renewal processes—reducing processing time and improving accuracyAdditionally, AI-driven facial recognition systems have been introduced at airports and border crossings, ensuring secure and efficient identity verification.

Beyond financial capacity, Al Zaabi emphasized Abu Dhabi's strategic geographical position at the crossroads of Europe, Asia, and Africa, bolstering its role as a crucial player in global trade

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The UAE has established comprehensive economic partnership agreements with 24 countries, including India and Turkey, and is actively negotiating further trade collaborations.

The delegation led by Al Zaabi included over 160 members, many of whom were first-time visitors to ChinaAmong them was Arvind Ramamurthy, the Development Director of the Abu Dhabi Global Market (ADGM), who has become quite familiar with Shanghai in recent monthsHe shared that this was his third visit to China within six monthsThe ADGM, based in Al Maryah Island, Abu Dhabi, is designed to turn the emirate into one of the world's leading financial hubs.

The ADGM has established a comprehensive regulatory framework based on English common law, providing legal certainty and transparency for businesses, and allowing for seamless interplay with regulations in places like Singapore and Hong KongIt also possesses its own civil and commercial legal jurisdiction, further enhancing legal protections for enterprises.

Ramamurthy noted that many Chinese companies have already set up operations within the ADGM, with a rapid growth trajectoryAl Zaabi revealed at the forum that the number of Chinese companies registered in Abu Dhabi surged by 69.4% in 2024 aloneIn the same year, the bilateral trade volume between China and the UAE exceeded $100 billion, up 7.2% year-on-yearThe UAE consistently ranks as China's top export market in the Middle East and the second-largest trading partner.

Currently, over 6,000 Chinese enterprises are operating across the UAE, engaging in key sectors such as technology, financial services, and energyLooking ahead, the bilateral trade volume between China and the UAE is projected to reach $200 billion by 2030. As Abu Dhabi rapidly solidifies its role as a significant gateway for Chinese investment into both the Middle East and global markets, Chinese companies are playing a crucial role in supporting its ambitions for sustainable development and economic diversification.

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