9 out of 10 Chinese Companies Plan Middle East Expansion, says PwC

According to a recent PwC survey, Chinese companies found the UAE and Saudi Arabia among the most attractive destinations to invest and operate in across the Middle East. Notably, 90% of respondents plan to enter or expand in the region, with more than four in ten already having detailed business plans in place.

PwC conducted a survey on Chinese Firms Middle East Expansion between April and May 2025 on 136 Chinese companies operating across the Middle East. Among the key findings include the following.

• 84% of respondents operate in Saudi Arabia and 79% in the UAE, with 65% choosing the UAE for their regional headquarters
• 77% now have physical operations in the region, an 11% increase from 2022
• 72% are seeking tax incentives outside free zones, while 74% call for more stable, transparent business policies and efficient governance
• 44% have formalised business plans for expansion, a 7% increase from 2022
• 40% reported profitability from Middle East operations, while the share of loss-making firms dropped to 15%

According to PwC Inbound/Outbound Leader, Linda Cai, “Economic diversification across the Middle East is opening new opportunities for Chinese enterprises. The number of Chinese companies investing and operating in the region continues to rise, with many actively preparing to enter the market.”

Similarly, PwC Middle East Clients and Market Leader, Rami Nazar, said “We see Chinese investors as partners in progress – bringing expertise, resilience and a global outlook.​ To all Chinese investors exploring or expanding in the Middle East: your journey is not only timely but also deeply valued.​”

The Middle East has long been a major hub for global shipping and trade, acting as a strategic link for connectivity and cooperation under China's Belt and Road Initiative.

Over the next three to five years, Saudi Arabia and the United Arab Emirates are expected to continue to draw in investment as business hubs, with both independent and joint venture models being actively sought.

Real Estate Market Gains from Corporate Growth

As Chinese companies continue to establish or scale operations in the UAE, considered a regional investment hub, the demand for office spaces, logistics hubs, and staff accommodations rise accordingly. This demand can already be seen in Dubai’s property market.

According to real estate market data from August 2025, Dubai saw broad-based growth across residential and commercial properties, driven by global investors and businesses expanding their footprint.

Notably, Chinese companies choosing the UAE as a regional headquarters contribute to this office absorption, as well as adding to the housing demand for relocated staff and families. This dual push reinforces Dubai’s position as an ever-growing and dynamic global real estate market.

Dubai’s DMCC as a Gateway for Expansion

Similarly, as Chinese companies seek more stable, transparent business policies and efficient governance, DMCC provides these critical services.

In fact, DMCC’s recent strategic partnership with Swedish company Vermiculus highlights this reliability. The partnership aims to accelerate innovation and enhance Dubai’s position as a global hub for technology, trade, and innovation — supporting the almost 26,000 companies in its ecosystem.

Since many Chinese businesses are already involved in the financial, logistics, technology, and commodities industries, integrating with DMCC's ecosystem can give them the advantages and efficiencies they need.

DMCC may serve as a launching pad and safety net for Chinese businesses, allowing them to connect with global trade routes and grow in the Gulf with confidence.

UAE’s FDI Appeal Aligns with Investor Priorities

Furthermore, the UAE’s FDI appeal also aligns with Chinese companies’ requirement for investor-friendly policies.

As a testament to the country’s reputation as a reliable, forward-looking investment hub, the UAE ranked second globally in FDI confidence in 2025. Furthermore, the new trade agreements such as the UAE-Russia deal further enhances its role as a global connector.

Therefore, more than just a regional base, the UAE offers Chinese companies a reliable gateway to scale operations across the Middle East and beyond, supported by investor protections and policy frameworks designed to attract and retain long-term capital.

Conclusion

The expansion of Chinese companies in the Middle East is noteworthy due to the multiplier effect it generates. In addition to promoting business, Chinese investments increase demand for housing and infrastructure, create new jobs, stimulate consumption, and fortify trade ties.

As a result, the continued establishment, investment, and expansion of Chinese companies in the Middle East contribute significantly to the region's overall economy.

For further insights and comprehensive real estate advisory services, please contact Driven | Forbes Global Properties at +971800374836.