DUBAI, Nov. 14 (Xinhua) — The internationalization of China‘s currency, the renminbi (RMB), took center stage in Dubai this week as regulators, bankers and business leaders from China and Arab countries gathered for two RMB-focused events in the United Arab Emirates (UAE).
At the RMB Cross-Border Usage and Bond Market Opportunities Forum, co-hosted by Bank of China and Nasdaq Dubai on Friday, Khalifa Rabba, chief operating officer of the Dubai Financial Market, highlighted that RMB internationalization has become one of the most significant trends shaping global markets.
He noted that over the past decade, deepening financial cooperation between China and the UAE has played an increasingly important role in strengthening Dubai’s position as a rapidly expanding global financial center.
Li Zhenlong, senior economist at the Bank of China’s London branch, said the UAE has made “significant progress” in expanding the use of the RMB and is emerging as an increasingly dynamic market with deepening links to London. He noted that events such as this forum highlight the growing opportunities for RMB-related business cooperation between Chinese and UAE enterprises.
As one of the leading economies in the Middle East, the UAE has seen rapid growth, embraces innovation, and actively captures new opportunities — all of which, he said, create substantial potential for further expanding the use of RMB in the region.
At a separate event, the Middle East RMB Ecosystem Forum, hosted by the Dubai branch of the Agricultural Bank of China on Wednesday, Chinese Ambassador to the UAE Zhang Yiming said financial cooperation between China and the UAE is “at the forefront” of China’s engagement with regional partners and continues to advance.
Global economic dynamics are undergoing profound changes, and diversification in the international financial system is accelerating, Zhang said, adding that the growing use of the RMB reflects China’s deeper integration into the global economy and offers more choices and lower costs for international trade and investment.
China-UAE relations have expanded in recent years across energy, trade, finance and infrastructure. In the financial sector specifically, both sides have deepened local-currency cooperation and strengthened cross-border financial infrastructure, building a more secure and efficient RMB clearing network to support trade and investment flows.
In the first nine months of this year, the amount of cross-border RMB receipts and payments between China and the UAE reached 864 billion yuan (121 billion U.S. dollars). Meanwhile, the UAE’s sovereign wealth fund has also been engaged in stock, bond, and private equity investments in China, according to the People’s Bank of China (PBOC), China’s central bank.
Last month, the PBOC authorized First Abu Dhabi Bank to serve as the RMB clearing bank in the UAE, making it the first local bank in the Gulf region to hold this role. The move highlights the joint efforts of China and the UAE to deepen financial integration.
Zhang said RMB use in the region is expected to broaden with support from governments, regulators and financial institutions, alongside improved infrastructure and a more mature offshore RMB market in the Middle East.
Wang Wenjin, senior executive vice president of the Agricultural Bank of China, said stronger China-Middle East economic ties are driving the growth of the regional RMB ecosystem. He said the Dubai branch will continue to expand its clearing services and enhance onshore-offshore coordination.
Pat Thaker, regional director for the Middle East and Africa at the Economist Intelligence Unit, said China-UAE diplomatic ties, broad business cooperation and shifting financial dynamics provide a strong base for RMB development. She said the UAE’s role as a regional transportation and economic hub, along with growing engagement from Chinese banks and companies, positions the country as a gateway for RMB expansion across the Middle East and North Africa.
At present, RMB is the largest settlement currency for China’s cross-border receipts and payments, the world’s second most used currency in trade financing, and the third most used in payments, according to the PBOC.
