( CNN ) -- China 's economy is booming and Sheikh Mohammed Bin Rashid Al Maktoum 's visit there this week highlights the U.A.E . 's ambitions to join in on this growth . CNN 's John Defterios ( JD ) sits down with Shaukat Aziz ( SA ) , former Prime Minister to Pakistan to talk about the emerging relationship . Former Pakistani Prime Minister Shaukat Aziz . Aziz is an expert in global banking who worked in the Middle East for a number of years as an official for Citigroup . He was an influential player in the process of creating a free trade agreement between Pakistan and China , after visiting the country in 2005 . Shaukat Aziz talks about the growing ties between China and the Middle East , and gives us inside knowledge on doing business in China . ( SA ) : I think the two economies are complementary . China is a global economy which is growing rapidly . It has one of the highest growth rates in the world , and it is expanding its footprint all over the world . Dubai and the U.A.E . is clearly a hub for South Asia , the Middle East , and the whole region . They are a trading center , they are a financial center , and they do n't compete directly with China , in fact both economies will compliment each other . I think the U.A.E . Prime Minister 's trip will help to further reinforce this and get the two countries closer together , in trade , in financial flows , in linking capital markets and many other initiatives . ( JD ) : Trade has been growing 30 to 40 percent over the last four years . But can it move beyond hard Chinese goods going into the Gulf ? ( SA ) : Of course it can . I think the nature of Dubai is such that it has now become the clearing house for goods from all over the world . And buyers go to Dubai and look for the best product at the best price . So , if China , being a large country , can bring its products to Dubai , it will help both countries . May I also say that I see China evolving as an exporter of capital , not just goods because China is running huge surpluses . Their reserves are at an all time high . So they are looking for investments too , and you see now a trend in Chinese companies to buy companies overseas . A trend in Chinese companies to invest overseas because they want , once they go global , they want production facilities all over the world . So the design and the research and development will be done in China , the components will come from China , but the manufacturing could move across the world . This trend is already started and I think this will all go well for both countries . ( JD ) : Lets take it a step further . Do you see Chinese investment funds or Sovereign Funds and U.A.E . sovereign funds going out together to acquire companies in the near future ? ( SA ) : Sure , there have been situations where both have participated in different companies . ( JD ) : But separately . ( SA ) : Separately , but I think they could join too . But the real issue on sovereign funds is being represented in certain quarters as if this is something which is unhelpful to the global economy . In my view , in an era of globalization we must open up our markets for investments and let anybody come along in line with the rules of that country . May I say that the sovereignty of any country is a very robust concept . And if a foreign sovereign fund or investor comes along and buys a bank in a particular country , the countries sovereignty is never jeopardized . But , if you have good regulators and good policies , because even in a deregulated environment , regulation is necessary . Deregulation does not mean abdication by the government , so if your regulatory regime is sound , you do n't have to worry . Sovereign funds have demonstrated that they have helped promote economic activity , help save certain companies , banks as a case in point . And it 's a win-win for both sides . So I think this question of their role is over stated . ( JD ) : Saudi Arabia 's King Abdullah went to visit China when he came into power in early 2006 . Is itinevitable that U.S.-European Allies in the Gulf turn to the East now and look for new partnerships in an East-East equation ? ( SA ) : This is the fastest growing economy in the world . It is absorbing foreign investment , it is exporting investment . It is the largest producer of goods and services now , in terms of growth rate . So Saudi Arabia , naturally , the largest economy in the Middle East by a long margin , needs to link up a country like China . I think it is not geo-politics which is driving it . It is economic necessity . It is tapping into growth . Saudi companies are investing in China . I know that in the energy sector Aramco has gone in for joint ventures and maybe SABIC too , and that is to me a very positive development . Because it is showing that capital looks for opportunities and if there is return China is not far enough . E-mail to a friend .
Shaukat Aziz , former Pakistani Prime Minister talks with John Defterios . Aziz sees compatibility between Middle Eastern and Chinese economies . Chinese surpluses may allow exporting of capital for overseas manufacturing . Aziz believes regulated foreign investment does not put sovereignty at risk .