The Dubai Multi Commodities Centre has signed a memorandum of understanding with Hong Kong Tinkam Capital to explore the development of a power and energy equipment manufacturing park in Dubai.
The agreement is intended to create a framework through which the two organizations can identify investment opportunities, approach prospective manufacturers and exchange industry expertise. The proposed park would target businesses operating across the power and energy equipment supply chain, including companies involved in advanced manufacturing and green technology.
A Framework for Attracting Manufacturers
DMCC said the partnership would seek to attract both upstream and downstream Chinese companies, potentially bringing equipment producers, component suppliers and related service providers into a shared industrial network.
The memorandum was signed during a delegation visit led by Guo Hongwei, executive deputy director of the management committee of the New Quality Productive Forces Development Fund under the China Economic Reform Research Foundation. Ye Xiongchang, chairman of Hong Kong Tinkam Capital, also attended, alongside representatives from the advanced manufacturing, green technology, power and energy industries.
Ahmad Hamza, Chief Free Zone Affairs Officer, DMCC, said: “China remains one of DMCC's most important strategic markets, with more than 1,000 Chinese companies now operating from our district and registrations growing at double-digit rates over the past five years. We welcome this partnership with Hong Kong Tinkam Capital that reflects our shared ambition to deepen commercial ties between the UAE and China while creating new opportunities across advanced manufacturing and energy infrastructure.”
Ye Xiongchang, Chairman, Hong Kong Tinkam Capital, added: “This partnership reflects the growing momentum of the Dubai-Hong Kong investment corridor and creates a strong platform for deeper industrial collaboration between our two markets. Together with DMCC, we will explore opportunities to develop a world-class power and energy equipment manufacturing ecosystem in Dubai while supporting Chinese enterprises looking to establish and grow their presence in the UAE.”
Project Remains at an Early Stage
The agreement establishes a framework for DMCC and Tinkam Capital to explore the development of a power and energy equipment manufacturing park in Dubai. Their planned cooperation includes identifying investment opportunities, engaging prospective manufacturers and supporting companies interested in entering the project.
The initiative is intended to bring together businesses operating across the power and energy equipment supply chain, including manufacturers, component suppliers and related service providers. DMCC said the partnership would also connect participating companies with its wider business ecosystem.
The memorandum marks the beginning of the collaboration rather than the completion of the proposed park. Future progress will depend on the parties’ ability to attract manufacturers, secure investment and translate the agreement into operational projects.
UAE Industrial Policy Provides the Backdrop
The initiative fits within the UAE’s broader effort to expand domestic manufacturing and attract industrial investment. Under the government’s Operation 300bn industrial strategy, the country aims to increase manufacturing’s annual contribution to gross domestic product to approximately $81.69 billion (AED 300 billion) by 2031, from about $36.22 billion (AED 133 billion) when the strategy was launched in 2021.
Machinery and equipment, electronics, clean energy and advanced manufacturing are among the areas identified under the national strategy. Its objectives include attracting foreign direct investment, supporting industrial small and medium-sized enterprises and increasing the use of advanced technology in production.
Dubai has also positioned manufacturing as part of its economic diversification agenda. The city’s manufacturing sector generated approximately $2.89 billion (AED 10.6 billion) during the second quarter of 2024, accounting for 9.1% of Dubai’s GDP of about $31.59 billion (AED 116 billion) during the period.
Cross-Border Trade Ties Continue to Expand
China remains a major commercial partner for the UAE, with trade and investment links spanning manufacturing, energy, logistics, technology and other sectors. A substantial number of Chinese companies have also established operations in the country, supporting broader economic cooperation and cross-border business activity.
DMCC hosts more than 1,000 Chinese companies working across sectors including energy, technology, construction, financial services and precious metals and stones.
The proposed park could give the partnership a clearer industrial focus if manufacturers ultimately commit capital and establish production operations. Until the parties publish a site, financing plan, participating companies or implementation schedule, however, the commercial scale of the initiative remains undetermined.
