PwC reports nearly 90 per cent of Chinese firms plan Middle East expansion, with Saudi Arabia and UAE top destinations. Profitability is rising as companies target tech, renewables, AI and biopharma.
According to PwC's latest report, “Chinese enterprises expand steadily into the Middle East market with heightened confidence”
survey of 136 Chinese firms reports.
Nearly 90 per cent of Chinese firms plan to expand in the Middle East, PwC reports, with Saudi Arabia and the UAE emerging as top destinations.
Enterprises are expanding steadily into the Middle East market with heightened confidence, amid rising profitability, stronger financial performance, and more sophisticated strategies that are reshaping the regional investment landscape.
Chinese firms eyes Middle East expansion
Findings show that 44 per cent have formalised business plans, a sharp rise since 2022.Profitability has improved significantly: 40 per cent of enterprises now report positive returns, while the share of loss-making firms has fallen to 15 per cent.
Instead of relying on representative offices, 77 per cent of firms now operate through full entities serving local markets. This marks a decisive transition from "testing the waters' to building long-term value in the region.
Saudi Arabia's rapid transformation and scale make it a leading choice for future expansion over the next three to five years, while the UAE remains a hub for diversification and regional investment.
Diversify into high-growth sectors
At the same time, Chinese enterprises are diversifying into high-growth sectors such asdigital technologies, renewable energy, artificial intelligence and biopharmaceuticals.
These align with both the Gulf's diversification plans and China's global innovation agenda.
The survey also highlighted policy expectations. 72 per cent of firms want tax incentives beyond free zones, while 74 per cent called for greater transparency, stability and efficiency in regulations.
Linda Cai, inbound/Outbound Leader, PwC China, said: "Chinese enterprises are no longer treating the Middle East as an exploratory market - it has become a strategic hub for global growth.
As the Middle East accelerates its economic transformation and strengthens its role in China's Belt and Road initiative, PwC's survey confirms a strong trajectory of growth,opportunity and collaboration between the two regions.
In the process of accelerating the implementation of business operations in the Middle East, efficient logistics channels serve as the crucial link connecting the Chinese and Middle Eastern markets.
CHOICE AIR has specialised in serving the Middle East and African markets for 28 years, providing door-to-door logistics solutions from China to the Middle East. We empower Chinese enterprises to swiftly deliver their premium products and services to the Middle Eastern market.
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https://www.arabianbusiness.com/politics-economics/chinese-firms-middle-east-saudi-arabia-uae
https://www.pwc.com/m1/en/publications/chinese-enterprises-expand-steadily-into-the-middle-east-market-with-heightened-confidence.html
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