DMCC (‘Dubai Multi Commodities Centre’), the Government authority on trade, enterprise, and commodities in Dubai, today announced the signing of a Memorandum of Understanding (MoU) with Zhongwei Ningxia Municipal People’s Government in China.
The purpose of the memorandum is to explore new collaboration, directives and initiatives to drive bilateral trade between DMCC and Zhongwei as part of the ‘One Belt One Road’ initiative.
The Ningxia Province oversees a large trade in Halal food and with Emirates Airline recently opening up a direct flight to Yinchuan, with the Ningxia Province, the import and export of Halal food is expected to increase significantly. Such trade can be further enabled by DMCC Tradeflow, a dedicated online platform which is able to register ownership and conduct Halal certification on UAE-based commodities and storage facilities.
Commenting on the new strategic partnership, Gautam Sashittal, Chief Executive Officer, DMCC, said:
“At DMCC, we are passionate about building and delivering new marketplaces whilst enabling businesses to expand into new territories. This collaboration with Zhongwei marks a natural next step in how we seek to drive the future of trade by increasing cross-border efficiencies for those looking to establish a business in Dubai and in the wider Ningxia Province.
“Today’s Memorandum of Understanding also reinforces the strong trading relations between China and Dubai, underpinned by the ‘One Belt One Road’ Initiative. In May, Emirates launched its first direct flight to Yinchuan in the Ningxia Province and this is a major lift for us as we aim to boost the commodities trade along the One Belt One Road.”
The memorandum also aims to connect DMCC’s 12,000 member companies and encourage trade between the west-central Ningxia Province and producing and consuming countries in the West as part of China’s ‘One Belt One Road’ strategy.
Bilateral trade between the UAE and China remains strong. China ranks as the UAE’s second largest trading partner, with an estimated value of $ 54.8 billion in 2015. Trade has increased 16% annually during the last six years. There are 4,200 Chinese companies registered in the UAE.
We currently have 146 Chinese companies registered under the DMCC Free Zone including leading energy, construction and general trading companies such as Al Sahara Petrotek, S.T&C Integrated Services, China Harbour Engineering Company, and China State Construction Engineering Corporation.
Mayor of Zhongwei Municipal government Mr. Wan Xinheng, commented:
“Zhongwei has played an important role in the Old Silk Road trade for decades which has also been key in establishing Zhongwei’s strong position on the ‘One Belt One Road’ map as we know it today. The collaboration with DMCC will further accelerate trade between China and Arabic countries along the ‘One Belt One Road’; connect China to emerging markets and the West; and modernise how we conduct business along the ‘One Belt One Road’ making the most of the opportunities digitalisation brings to market”.
Zhongwei, with a population of over one million people, lies in west-central Ningxia Province, bordered by Gansu Province to the west and Inner Mongolia to the north. The city’s GDP accounts for approximately 11.2% of Ningxia’s total, primarily through its industrial and construction sector, followed by agriculture. The city’s principal productions include beverage, papermaking, chemicals, and non-metallic products.
Zhongwei is rich in mineral resources such as gypsum, silica, coal, clay and limestone that support the industrial sector, which makes up roughly 45 per cent of the city’s total GDP. In 2014, the total value of exports reached $45.78 million and imports valued at $21 million.