Nearly 90% of Chinese companies plan expansion across the Middle East, with Saudi Arabia and the UAE emerging as the most favoured parallel investment destinations, according to a PwC survey of 136 firms. The findings show that 84% of respondents are targeting Saudi Arabia and 79% favour the UAE.
The study, conducted between April and May 2025, reveals that 44% of these companies have already formalised business plans. Financial performance is improving: 40% now report profitable operations in the region, while only 15% register losses.
There is a strong shift from exploratory presence to full operations: 77% of companies have moved from representative offices to fully operational local entities. Over 60% express satisfaction with the returns on their investments.
Key sectors attracting investor interest are digital technologies, artificial intelligence, biopharmaceuticals and renewable energy. These align with the economic transformation agendas of Saudi Arabia and the UAE, including Saudi Arabia’s Vision 2030 and the UAE’s diversification efforts.
Chinese firms are also voicing policy demands. About 72% are asking for tax incentives beyond those offered in free zones, while 74% want more transparent, stable and efficient regional regulations.
Saudi Arabia is viewed by many as the most promising market over the next three to five years, driven by its large scale and rapid economic reforms. The UAE retains appeal for its regulatory environment, connectivity, talent pool and role as a regional business hub.
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