Investors eye UAE as Belt and Road real estate gateway for Asia

BEIJING, Sept. 25, 2025 /PRNewswire/ -- A report from China Daily

Countries involved in the Belt and Road Initiative, such as the United Arab Emirates, have emerged as promising prospects for both individual and institutional investors amid global economic uncertainties and the ongoing transition toward high-quality development in China's real estate sector, according to industry experts.

These views were shared by senior executives and experts at the 2025 Middle East Property Investment Forum, hosted in Shanghai by China Real Estate Information Corp on Tuesday. The forum aimed to offer new perspectives for enterprises seeking transformation and market expansion, while also presenting fresh opportunities for individual overseas property purchases and investment.

Designed to serve as both a bridge and an experiment, the forum aligns with China's call in its 2025 government work report to advance the Belt and Road Initiative more deeply, creating more opportunities for businesses and individuals.

"The global trade landscape is undergoing profound adjustments, with growing emphasis on regional trade, fair trade, green trade, and secure trade," said Luo Changyuan, a professor at Fudan University's School of Economics.

Luo noted that these trends closely align with cooperation priorities between China and Arab countries in areas such as energy, environmental protection, and industry and supply chains, creating a favorable macro environment for bilateral collaboration.

"There is a growing appetite from investors in China for Abu Dhabi. We see that opportunity increasing as we invest more time here and build brand awareness," said Jonathan Emery, CEO of Aldar Development.

"With bilateral trade now approaching $100 billion, the scope for deeper cooperation is substantial. And it is not only in commerce, but also in investment, culture, tourism, and education where the ties between the UAE and China continue to grow stronger," Emery said.

"Overseas property investment should concentrate on regional hub cities. In the Middle East, Dubai and Abu Dhabi stand out as the key destinations," said Ding Zuyu, chairman of CRIC.

Ding pointed out that leading cities in mature markets, such as New York, London, and Singapore, have long been magnets for real estate investment. Similarly, as the UAE establishes itself as the region's leader, its core cities of Dubai and Abu Dhabi function not only as national centers, but also as financial and economic hubs for the wider Middle East.

At the event, CRIC released its 2025 H1 UAE Residential Market Trends Report, its second in-depth research publication on the UAE property sector this year following the launch of its UAE Real Estate Market White Paper in May.

The latest report focuses on the fundamentals of the UAE residential market, with Dubai and Abu Dhabi as the primary areas of analysis. Examining factors such as trade performance, urban planning, and real estate transaction patterns, the report aims to offer practical, data-driven insights for global investors, enterprises, and researchers.

It outlines three major strengths underpinning the UAE's property market: steady economic growth, strong demographic momentum, and favorable policy support.

"In particular, China's electric vehicles, solar power, and lithium batteries match the energy transition needs of Arab nations. Meanwhile, emerging new quality productive forces — including the digital economy and artificial intelligence — are expected to drive deeper digital cooperation, while new corridors of trade and investment, facilitated through third countries, offer pathways to overcome certain international circulation barriers," Luo noted.

Specifically, in Abu Dhabi, the population reached 4.14 million in 2024, surpassing Dubai to become the country's most populous emirate. In the first half of 2025, residential transactions in Abu Dhabi totaled 21.85 billion dirhams ($5.95 billion), up 30 percent year-on-year, with average home prices rising 17 percent to 3.3 million dirhams per unit.

Dubai, meanwhile, has emerged as one of the world's fastest-growing real estate markets, recording 98,726 transactions in the first half of 2025, a 22 percent increase year-on-year. The total value of transactions jumped 40 percent to 326.9 billion dirhams, while luxury property rental yields reached 5.3 percent in 2024, ranking second globally.

This overall momentum is being strongly felt in the real estate market. As the capital's largest developer, investor, and manager, Aldar's figures illustrate the trend clearly: in 2024, overseas and expatriate buyers accounted for 78 percent of its UAE sales, up from just 21 percent in 2021.

"A major part of this growth is coming from China. Over the past three years, purchases by our Chinese customers have increased almost three-fold, already surpassing $690 million this year with the final quarter still to come," Emery said in his keynote speech on building bridges between the UAE and China through cross-border real estate.

According to him, the combined investment of $700 million made by Chinese investors in the UAE to date this year comes from both individuals and institutions.

"We hope to grow this opportunity as we invest time in communication and work with partners," Emery said.

Nevertheless, experts also cautioned that investors should closely monitor the sustainability of economic, demographic, and policy trends in the UAE, while remaining alert to geopolitical risks in the wider Middle East.

"Among the 152 countries involved in the Belt and Road Initiative, I view Southeast Asia and the emerging Middle East markets most favorably," said Li Lan, general manager of Shanghai Construction Group's overseas business management division.

Li shared the globalization experience of Shanghai Construction Group, which currently has 53 ongoing projects across 26 countries involved in the Belt and Road Initiative, spanning Southeast Asia, Africa, and other regions.

"When Chinese companies expand overseas, several factors should be considered. First, such ventures need to align with national strategies, ensuring that policies and development plans between the two countries are compatible. For example, the Belt and Road Initiative should be coordinated with Saudi Arabia's Vision 2030 economic diversification strategy to secure a strong foundation for future growth," Li explained.

"Second, attention should be paid to the development prospects of the target country or region, such as the presence of major cultural or public events, which can help ensure sufficient construction demand for building companies.

"Third and finally, a coordinated approach along the entire industry chain is ideal. Forums like today's, which bring together investors, developers, contractors, and suppliers on a single platform, demonstrate that having the right people, at the right time, in the right place, is crucial for fostering connections and collaboration based on past overseas experiences," Li added.

SOURCE China Daily