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Chinese Firms Anchor in Dubai Free Zones to Navigate Trade Barriers and Expand Reach

Chinese Firms Anchor in Dubai Free Zones to Navigate Trade Barriers and Expand Reach

Chinese companies increasingly establish bases in Dubai’s free zones in 2025. They use these hubs to bypass rising global trade barriers, reroute supply chains, and access new markets in the Middle East, Africa, and Europe. This trend accelerates amid protectionism and geopolitical shifts.

Surge in Chinese Presence

Over 15,500 Chinese firms operate in the UAE, with many concentrated in Dubai’s free zones like DMCC over 1,000 companies and IFZA. DMCC reports 16% growth in Chinese members in 2025, driven by tech sectors such as AI and blockchain. Overall, registrations in key zones rise consistently, with some noting 30% increases year-over-year.

Rising protectionism, including US and European tariffs, prompts diversification. Dubai’s free zones offer 100% foreign ownership, tax exemptions, and streamlined logistics—ideal for rerouting exports. Additionally, new 2025 regulations allow free zone entities to operate on the mainland, enhancing flexibility for local and regional trade.

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