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According to a recent PwC survey, Chinese companies found the UAE and Saudi Arabia among the most attractive destinations to invest and operate in across the Middle East. Notably, 90% of respondents plan to enter or expand in the region, with more than four in ten already having detailed business plans in place.
PwC conducted a survey on Chinese Firms Middle East Expansion between April and May 2025 on 136 Chinese companies operating across the Middle East. Among the key findings include the following.
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- 84% of respondents operate in Saudi Arabia and 79% in the UAE, with 65% choosing the UAE for their regional headquarters
- 77% now have physical operations in the region, an 11% increase from 2022
- 72% are seeking tax incentives outside free zones, while 74% call for more stable, transparent business policies and efficient governance
- 44% have formalised business plans for expansion, a 7% increase from 2022
- 40% reported profitability from Middle East operations, while the share of loss-making firms dropped to 15%
According to PwC Inbound/Outbound Leader, Linda Cai, “Economic diversification across the Middle East is opening new opportunities for Chinese enterprises. The number of Chinese companies investing and operating in the region continues to rise, with many actively preparing to enter the market.”
Similarly, PwC Middle East Clients and Market Leader, Rami Nazar, said “We see Chinese investors as partners in progress – bringing expertise, resilience and a global outlook. To all Chinese investors exploring or expanding in the Middle East: your journey is not only timely but also deeply valued.”
The Middle East has long been a major hub for global shipping and trade, acting as a strategic link for connectivity and cooperation under China's Belt and Road Initiative.
Over the next three to five years, Saudi Arabia and the United Arab Emirates are expected to continue to draw in investment as business hubs, with both independent and joint venture models being actively sought.