https://arab.news/yag69
RIYADH: Nearly 90 percent of Chinese companies are planning to expand their operations in the Middle East, reflecting growing confidence in the region’s investment climate, according to a new PwC survey.
The report, based on a survey of 136 Chinese firms, found that and the UAE are the most popular destinations, with 84 percent and 79 percent of companies, respectively, planning investments there.
Financial performance in the region has also improved, with 40 percent of respondents now reporting profitable operations—a sharp rise since 2022—while only 15 percent reported losses.
About 44 percent of the firms have already formalized business plans, and over 60 percent expressed satisfaction with their regional investments.
Reflecting a strategic shift, 77 percent of respondents said they are moving from representative offices to full-scale operations with dedicated local entities.
“Chinese enterprises are no longer treating the Middle East as an exploratory market – it has become a strategic hub for global growth,” said Linda Cai, Inbound/Outbound Leader at PwC China.
Sectors attracting the most interest include digital technologies, artificial intelligence, biopharmaceuticals, and renewable energy—aligned with both ’s Vision 2030 and China’s global innovation ambitions.
remains a key target due to its rapidly transforming economy and market potential, while the UAE continues to draw investors as a regional hub offering diverse economic opportunities.
Policy improvements remain a priority: 72 percent of firms are seeking tax incentives beyond free zones, and 74 percent are calling for greater transparency, stability, and efficiency in regional regulations.
“The Middle East is entering a transformative era, marked by diversification, innovation, and stronger global integration,” said Rami Nazer, clients and markets leader at PwC Middle East and PwC EMEA government and public sector leader. “The deepening commitment of Chinese companies signals a new phase in this economic transformation. By bringing expertise, investment, and long-term partnerships, Chinese enterprises are contributing to the region’s sustainable growth and prosperity, reinforcing its increasingly central role in global investment strategy.”
Aligned with China’s Belt and Road Initiative, the survey points to a growing trajectory of cooperation and investment expected to shape the future of Sino-Middle East economic relations.