Investors Turn to UAE as a Key Real Estate Hub in Belt and Road Initiative

UAE as a Vital Gateway for Real Estate Investment

Amid escalating global economic uncertainties and a strategic shift towards high-quality development in China's real estate sector, investors are increasingly looking at the United Arab Emirates (UAE) as a prominent opportunity under the Belt and Road Initiative (BRI). This insight emerged from the recently concluded 2025 Middle East Property Investment Forum, hosted in Shanghai by the China Real Estate Information Corp. According to industry experts, both individual and institutional investors view the UAE as a promising prospect.

Set against the backdrop of shifting trade dynamics, the forum gathered senior executives to discuss market evolution and point out new avenues for overseas property transactions and investment. Luo Changyuan, a professor at Fudan University's School of Economics, emphasized the ongoing transformation of the global trade landscape where regional, fair, green, and secure trade practices are gaining momentum. This evolution aligns seamlessly with the cooperative priorities between China and Arab states in areas like energy and supply chains, thereby facilitating investment opportunities.

Jonathan Emery, CEO of Aldar Development, stressed the increasing allure of Abu Dhabi for Chinese investors. He noted the rapid growth of bilateral trade, approaching $100 billion, and indicated substantial prospects in commerce and various other sectors, including culture, tourism, and education. “Regional hub cities are essential for overseas property investment, and Dubai and Abu Dhabi are the standout destinations in the Middle East that function as financial and economic centers,” stated Ding Zuyu, chairman of CRIC.

The forum also marked the launch of the 2025 H1 UAE Residential Market Trends Report, which offers critical insights into Dubai and Abu Dhabi, focusing on trade performance and real estate transactions. The report indicates a robust property market characterized by steady economic growth, dynamic demographic evolution, and supportive policies.

Fascinatingly, the growth trajectory of Abu Dhabi's real estate market is evident with its population surpassing 4.14 million in 2024, emerging as the most populated emirate in the country. Notably, during the first half of 2025, residential property transactions surged to 21.85 billion dirhams ($5.95 billion), marking a 30 percent increase compared to the previous year. Meanwhile, average home prices jumped by 17 percent, reaching approximately 3.3 million dirhams per unit.

Dubai is witnessing remarkable growth as well, being one of the globe's fastest-growing real estate markets. The emirate recorded 98,726 property transactions in the first half of 2025, showing a 22 percent year-on-year increase. The value of these transactions soared 40 percent to a staggering 326.9 billion dirhams, with the luxury rental yields reaching 5.3 percent in 2024, second globally.

Aldar Development's numbers are indicative of this upward trend, illustrating that overseas and expatriate buyers accounted for 78 percent of its UAE sales in 2024—a significant rise from 21 percent in 2021. Majority of this growth has been driven by Chinese investments, with purchases from Chinese clients tripling in the past three years, collectively surpassing $690 million in 2025 alone.

While optimism is palpable among investors, experts urge caution regarding the sustainability of the UAE's economic, demographic, and policy trends, keeping an eye on geopolitical risks throughout the region. According to Li Lan, general manager of Shanghai Construction Group's overseas division, Southeast Asia and emerging Middle Eastern markets present favorable investment opportunities under the BRI.

He emphasized the need for synchronization between national strategies and highlighted that the BRI should align with Saudi Arabia's Vision 2030 diversification goals to lay a robust groundwork for growth. Additionally, he pointed out the significance of cultural events in the target region in ensuring construction demand.

Forums such as this provide an excellent networking platform, merging investors, developers, and suppliers, thereby enhancing collaboration and fostering valuable business relationships across the Belt and Road landscape.