On the back of a strong increase in trade over the last decade, with a compound annual growth rate of 5.7% between 2013 and 2022, Hong Kong and the UAE have developed closer commercial and economic partnerships. Today, the UAE has become one of Hong Kong's main trading partners and the largest in the Middle East, representing 69.8% of Hong Kong's total trade with that region. In 2022, the value of trade between Hong Kong and the UAE increased by 27.6% year‑on‑year, driven by a 35.3% growth in exports from Hong Kong to the UAE. 

Positioned as a business, trading and investment hub for the UAE and the Middle East region, Dubai has become a major point of connection for the business community in Hong Kong, which itself serves a similar function in China and the Asia‑Pacific region.

In an interview with HKTDC Research, Omar Khan, Head of the Centre of Business Studies and Research at Dubai Chamber of Commerce, shared his views on the role of Dubai as a business platform for the Middle East, as well as the opportunities for greater synergy between Hong Kong and Dubai as two regional commercial hubs.

Business in Dubai

Established in 1965, the Dubai Chamber of Commerce serves to represent and support Dubai's business community through facilitating a favourable business environment, promoting Dubai as an international business hub and encouraging business development.[1] The Chamber runs various business groups by industry, as well as business councils by region, to provide tailored support for businesses expanding into and out of Dubai. It currently has over 347,600 corporate members, including over 56,000 that joined in 2022 – a 20% increase year‑on‑year in total memberships.[2]

In the first nine months of 2022, Dubai saw a GDP growth of 4.6% year‑on‑year. A significant driver of Dubai’s growth has been travel and tourism, and the city received over 14 million international visitors in 2022, reaching 86% of pre‑pandemic levels, compared to the global average of 63%.

Khan pointed to preparedness as the key to Dubai’s resilience, allowing the city to capitalise on major opportunities such as the Dubai Expo 2020.[3] He said: “The Expo was the world's first event of its scale to be held since the pandemic began, so it’s hard to overstate its importance. The Dubai Chamber worked hand in hand with the organising group, government and the business community to ensure the success of the Expo. Closing the information gap was more important than ever, so the Chamber hosted webinars and events with hundreds of businesses around the world to build confidence by explaining the opportunities that Dubai presents as a gateway to the Middle East, Africa and South Asia. The Expo demonstrated Dubai’s collective effort to always be well‑prepared in terms of service quality, exhibition facilities, infrastructure, transportation and more. The result was a huge success, with the 6‑month Expo recording more than 24 million visits from 192 countries.”

As travel and commerce continues to recover from effects of the pandemic, Khan expressed his confidence in the prospects for Dubai’s exhibition industry, looking forward to more large‑scale events like Expo 2020. He said: “Much like Hong Kong, exhibitions are our bread and butter as a commercial hub. We are always eager to showcase innovative ideas and products, and we are building an extensive global business network, which includes many businesses from mainland China and Hong Kong, to do this. We have seen the demand for exhibitions pick up especially post‑pandemic. Gulfood, for example, has become one of the world’s largest food and beverage exhibitions, showcasing the latest trends and acting as a major sourcing platform for the industry. Dubai also hosts GITEX GLOBAL, a world‑leading tech and start‑up event, featuring the latest developments in the technology ecosystem.”

Adding value via public-private synergy

Khan highlighted the Dubai government’s efforts to facilitate and promote business in the region, saying: “Policies such as low taxes and visa incentives make it easy to do business in Dubai, and the government makes plenty of investments in business infrastructure, especially in free zones. For example, the government‑backed Dubai Multi Commodities Trading Centre (DMCC) is one of the largest free zones in Dubai and acts as a major trading hub for commodities such as diamonds, precious metals and agricultural products.”

The DMCC Tea Centre, one of the DMCC’s main projects, serves as a regional tea distribution centre, backing the UAE’s status as a major tea re‑exporter and the world’s fifth largest tea exporter behind China, Sri Lanka, Kenya and India in 2021. Khan attributed the Tea Centre’s strengths to its value‑adding services, saying: “On top of world‑class customs and warehousing facilities, the Centre offers tea packing and blending services, as well as opportunities to source from and market products to industry peers. It’s a great example of how Dubai can be more than a re‑export hub and add value to global trade.”

In what he calls the "desert spirit" – making the most out of limited resources – Khan emphasised the importance of maintaining effective communication between key stakeholders in the economy. He believes that the Dubai Chamber of Commerce plays an important role in this process, saying: “Both the government and business community in Dubai aim for high standards and measurable progress.

The Chamber bridges the gap between the two by pooling information and sharing ideas. In our Future Growth Forum, for example, we introduced government representatives to more than 500 members from 24 sectors to collect their views, understand their challenges and gather their wish lists. Importantly, we followed up on these issues to ensure that the recommendations and objectives are met.”

Bolstering Hong Kong-Dubai Connections

Khan noted that, as major commercial hubs in their respective regions, Hong Kong and Dubai have many areas for potential synergy, connecting trade, investment and talent flows between the Asia‑Pacific and Middle East and Africa markets. He said: “It is important for the two hubs to communicate and find where we can synergise – especially areas where we can complement each other. The two financial hubs in Hong Kong and Dubai certainly have the potential to support the funding needs of investors. As Dubai continues to develop into a bigger and more innovative city, there are plenty of investment opportunities in areas such as smart cities, data centres, advanced manufacturing and transport infrastructure. Many businesses in Dubai have a great interest in Greater Bay Area (GBA) opportunities, and Hong Kong is renowned for being an excellent business platform and gateway to mainland China.”

At the UAE-Hong Kong Business Forum, held in Dubai on 9 February 2023, the Hong Kong business delegation, led by Chief Executive John Lee, signed three memorandums of understanding (MoUs) with government and business leaders in the UAE to pursue deeper collaboration. One memorandum signed by the Dubai Chambers and the HKTDC pledged to promote the development of trade relationships and business opportunities between Dubai and Hong Kong. The Dubai Chambers also announced the establishment of a new international office in Hong Kong, aiming to strengthen economic and commercial ties between Dubai and Hong Kong.

“The world is getting smaller, so continued efforts by organisations like the HKTDC and Dubai Chamber of Commerce to showcase the latest and greatest will surely benefit the development of the business community,” Khan said. 

[1] The Dubai Chamber, established in 1965, was restructured in 2021 into Dubai Chambers, with three chambers operating under it, the Dubai Chamber of Commerce, the Dubai International Chamber and the Dubai Chamber of Digital Economy. 

[2] The Dubai Chamber of Commerce offers membership services to licenced mainland and free zone companies in Dubai that practice commercial, industrial and professional activities.

[3] The Expo 2020 was a World Expo held in Dubai from 1 October 2021 to 31 March 2022, after being postponed due to the Covid-19 pandemic.