25 Chinese Jewellery Firms to Open Offices in Dubai

As part of its business expansion plans in the Middle East, a 10-member delegation from the Government of Shenzhen visited the Dubai Multi Commodities Centre on Monday and discussed possibilities of trade co-operation between the two sides.

“The UAE can emerge as the centre of Chinese jewellery exports to the Middle East while Shenzhen has enough potential to become a jewellery manufacturing hub for the UAE and the region,” Ni Zewang, Standing Committee Member of Communist Party of China, Luohu District, said.

“Within the next two years, about 25 companies will set up their trading offices in Dubai, while Emirati jewellery companies will be invited to open their offices and utilise the manufacturing facilities in the Shenzen Special Economic Zone,” he said.

The UAE is the second largest trading partner of China among the Gulf Cooperation Council countries and the largest market for Chinese exports in the region.

According to the Statistics division of Dubai World, gold and jewellery trade between Dubai and China stood at Dh411.9 million in 2008.

Dubai’s total trade with China touched Dh98.8 billion in 2008. Of this, Dh95.2 billion was generated from imports, Dh919 million from exports and the remaining Dh742 million came from re-exports.

The Middle East accounts for 20 per cent of the world’s $50 billion market for diamonds and diamond jewellery, according to a recent McKinsey report. Retail diamond sales in the GCC region is worth around $2.5 billion a year. China has a $1.75-billion worth retail jewellery market, and is world’s largest platinum consuming country.

“The collaboration between the two countries will facilitate a more conducive business environment for commodity traders in China and UAE,” Ahmed bin Sulayem, Executive Chairman, DMCC said.

However, both parties did not disclose the amount of investment, saying that talks are at initial stages and it would be premature to give any figures.

aneela@khaleejtimes.com