(Yicai) Sept. 16 -- Chinese companies’ investment logic has shifted, as they no longer see Dubai as a regional transit hub but as a target market where to settle operations, according to local industry insiders.

“Trade, import and export, logistics, and general commercial activities are still a major part of Chinese corporate investment in Dubai,” Tao Xiao, managing partner at United Arab Emirates-based corporate service and regulatory advisory firm NH Management, told Yicai. “Over the past three years, we have seen a notable shift in the mix of requests we receive, as the share of technology, financial services, investment management, and family businesses has risen markedly.”

The fastest-growing areas of inquiries from Chinese clients are cloud and digital services, new energy and battery businesses, advanced mobility, logistics, and last-mile delivery, according to Tao. A commonality among clients is their focus on localized operations, often involving on-site research and development or local assembly, rather than just local distribution.

“Three years ago, our typical job was helping clients register companies locally,” Tao said. “Today, our tasks cover designing local operating structures, securing licenses, meeting regulatory requirements, establishing governance and operating frameworks, and providing support after business launch.”

Tao explained that her company provides consulting services for autonomous driving operations in Dubai for a large tech group. “This involves analyzing the jurisdictional characteristics of Dubai’s free trade zones and non-free trade zones, setting up multiple entities to separate R&D, testing, and commercial activities, and building a full governance and operational framework.”

Inquiries from Chinese investors no longer focus on traditional trade and logistics, as they now show a much more diversified industry pattern, Simon Gordon, Middle East managing director for corporate services at Sovereign PPG, an advisory firm specialized in regional company incorporation and corporate services, told Yicai.

Sovereign PPG data shows that inquiries from technology, digital economy, fintech, software, and testing businesses account for about 18 percent of the company’s total, while those related to energy, oil and gas, industry, engineering, construction, equipment and automotive sectors make up around 12 percent. Inquiries for commercial activities tied to trade, logistics, and supply chains account for roughly 9 percent.

This signals a fundamental shift in Chinese investors’ interests, as Dubai is no longer viewed merely as a trade base but increasingly as a comprehensive platform for technology deployment, industrial capacity export, and specialized regional services, Gordon explained.

The biggest draw for Chinese enterprises settling in Dubai is the city’s ability to radiate into surrounding regions, Tao said. NH Management carried out a survey among its clients, asking their ultimate goals for investing in Dubai.

Forty percent said they chose Dubai primarily aiming to reach customers across the UAE and the Gulf region. Around 30 percent wanted to use Dubai as a hub to expand into Africa, South Asia, and other emerging markets. Only about 10 percent see Dubai as a gateway into Europe. The remaining roughly 20 percent prioritize Dubai’s local tax efficiency and flexibility of capital flows.

“For some large Chinese corporate groups, taxation is no longer the main reason for choosing Dubai,” Tao noted, adding that it is a competitive, not a unique advantage.

Clarity of regulatory policies, long-term residency rights for executives, and geopolitical factors are other important considerations for Chinese enterprises expanding into the region, according to Tao. “The UAE is one of the few jurisdictions where Chinese firms can build truly international platforms without worrying that the platforms become a political issue.”

Editors: Tang Shihua, Futura Costaglione