China's push to internationalize the renminbi (RMB) is gaining significant traction in the Middle East, with the UAE emerging as a pivotal hub. The 15th Five-Year Plan, finalized earlier this year, has prioritized expanding the currency's global footprint, particularly in fast-growing markets like the Gulf Cooperation Council (GCC) countries.
The Agriculture Bank of China's Dubai Branch (AgBank), established in 2016 as the UAE's first RMB clearance bank, reported cumulative clearing volumes exceeding 900 billion yuan ($126.5 billion) as of November 2025. The institution processed over 200 billion yuan in 2024 alone, reflecting accelerating adoption.
This year saw a landmark development with First Abu Dhabi Bank becoming the UAE's second authorized RMB clearance bank and the first regional lender to receive People's Bank of China approval. Analysts predict this dual-channel system will streamline cross-border transactions for Middle Eastern businesses while reducing dollar dependency.
Central bank data reveals robust growth: China-UAE cross-border RMB receipts and payments reached 864 billion yuan in the first three quarters of 2025. With bilateral trade targets set at $200 billion, financial institutions are preparing for expanded RMB utilization in energy transactions and infrastructure projects.
"What began as trade settlement diversification is evolving into deeper financial integration," noted a Dubai-based economist. "The RMB's role now extends beyond commerce into investment vehicles and reserve management strategies across GCC states."
