- 86% of Chinese enterprises plan to expand operations across the Middle East, signaling strong investor confidence
- 77% of firms have shifted from representative offices to full-scale operations
- Saudi Arabia and the UAE lead as top destinations, with investments shifting into digital, green and high-tech sectors
9 September 2025; Riyadh, Kingdom of Saudi Arabia – Chinese enterprises are accelerating their expansion into the Middle East, with nearly 90% planning to grow operations in the region, according to PwC’s latest survey of 136 Chinese firms. The report, Chinese enterprises expand steadily into the Middle East market with heightened confidence, highlights growing confidence, stronger financial performance and more sophisticated strategies that are reshaping the investment landscape.
Findings show that 44% have already formalised business plans, a marked increase since 2022. Profitability has also improved significantly: 40% of enterprises now report positive returns from their Middle East operations, while the share of loss-making firms has fallen to 15%. More than 60% of respondents say they are satisfied with their investments, reflecting the region’s growing importance to Chinese business strategy.
The model of entry is also shifting. Instead of relying on representative offices, 77% of firms now operate through full entities serving local markets. This move signals a decisive transition from testing the waters to building long-term value in the region.
Saudi Arabia and the UAE stand out as top investment destinations, attracting 84% and 79% of surveyed companies respectively, followed by Egypt. Saudi Arabia has emerged as one of the leading choices for future expansion over the next three to five years, driven by its rapid economic transformation and market scale, while the UAE also stands out as a top choice given its position as a regional hub for diversification and investment. At the same time, Chinese investors are diversifying into fast-growing sectors including digital technologies, renewable energy, artificial intelligence and biopharmaceuticals, aligning with both the region’s diversification plans and China’s global innovation drive.
Policy expectations are also evolving, with 72% of firms seeking tax incentives outside free zones and 74% calling for greater transparency, stability and efficiency in regional business regulations. These expectations highlight the priority investors place on cost efficiency, clarity and governance frameworks that can support sustainable growth.
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. With rising profitability, stronger policy support, and expanding opportunities beyond traditional sectors, Chinese investors are shaping the next chapter of economic collaboration in the region.”
Rami Nazer, Clients and Markets Leader, PwC Middle East, and PwC EMEA Government & Public Sector Leader, said: “The Middle East is entering a transformative era, marked by diversification, innovation and stronger global integration. The deepening commitment of Chinese companies signals a new phase in this economic transformation. By bringing expertise, investment, and long-term partnerships, Chinese enterprises are contributing to the region’s sustainable growth and prosperity, reinforcing its increasingly central role in global investment strategy. This report highlights the key attributes that can help governments shape policies and strategies to attract stronger Chinese investment.”
As the Middle East fast-tracks 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.
The full report is available here.
About PwC
At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 370,000 people in 149 countries. Across audit and assurance, tax and legal, deals and consulting we help build, accelerate and sustain momentum. Find out more at www.pwc.com.
Established in the Middle East for over 40 years, PwC Middle East has 30 offices across 12 countries in the region with 12,000 people. (www.pwc.com/me).
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
© 2025 PwC. All rights reserved
