Chinese enterprises expand steadily into the Middle East market with heightened confidence

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PwC’s latest survey reveals a shift from exploration to execution, as Chinese companies tap into the region’s economic momentum and policy support

Chinese enterprises are increasingly turning their sights to the Middle East, driven by rising confidence, economic returns and supportive policy shifts. PwC’s latest survey, conducted between April and May 2025, captures the views of 136 Chinese companies operating across the region. The findings indicate a clear shift from market exploration to active expansion, signaling that the Middle East is no longer viewed as a frontier market, but as a strategic growth hub for Chinese businesses.

The Middle East has long served as a critical hub for global shipping and trade, serving as a strategic bridge for connectivity and cooperation within China’s Belt and Road Initiative. The deepening ties between China and the region are underpinned by both economic alignment and diplomatic momentum. Among the 10 major Middle Eastern countries, China has established comprehensive strategic partnerships with the UAE, Saudi Arabia, Egypt and Bahrain, as well as strategic partnerships with Jordan, Iraq, Kuwait, Qatar and Oman.

Chinese investors are welcomed to the region as partners in progress and contributors to national economic visions – bringing expertise, capital, and a fresh global outlook.​ To all Chinese investors exploring or expanding in the Middle East: your journey is not only timely but also deeply valued.​

Rami Nazer, PwC Middle East Clients and Markets Leader

Looking ahead, ambition is rising. Nearly 90% of respondents plan to enter or expand in the region, and more than four in ten already have detailed business plans in place. Saudi Arabia and the UAE will continue to attract the lion’s share of investment over the next three to five years, with both independent and joint venture models being actively pursued.

Key findings:

84%

of surveyed enterprises 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, up 11 percentage points since 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, up seven percentage points from 2022

40%

reported profitability from Middle East operations, while the share of loss-making firms dropped to 15%

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.

Linda Cai, Inbound/Outbound Leader, PwC China

Explore the full report for valuable insights tailored to enterprises operating in the Middle East and investors seeking opportunities in this dynamic market.

(PDF of 2.74MB)

Contact us

Linda Cai

Inbound/Outbound Leader, Head of China Corporate Finance, Shanghai, PwC China

+[86] (21) 2323 3952

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Rami Nazer

Clients & Markets Leader, PwC Middle East

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