Chinese firms to invest AED1bn in Abu Dhabi

ABU DHABI / Reuters / WAM

Five Chinese companies will start operations in Abu Dhabi’s industrial zone with an initial investment of AED1 billion in a boost for the oil-rich emirate’s economic diversification plans.
The companies, from Jiangsu province on China’s east coast, are involved in sectors ranging from power and metals to natural resources and banking, Abu Dhabi officials said.
Abu Dhabi Ports signed a
50-year agreement with the Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC) to take a lease on 2.2 square kms at the Khalifa Industrial Zone Abu Dhabi (KIZAD), Mohamed Juma Al Shamisi, chief executive of Abu Dhabi Ports, said.
The cooperation agreement was signed by Dr Sultan Ahmed Al Jaber, Minister of State and Chairman of Abu Dhabi Ports, and Huang Lixin, Executive Vice Governor of Jiangsu Provincial People’s Government, and witnessed by officials from both sides.
JOCIC will in turn sign separate agreements with the five Chinese companies, he said.
Commenting on the signings, Dr Sultan Ahmed Al Jaber said, “We have worked hard to make KIZAD not only the largest free zone in the region, but also one of the most sophisticated and high-potential free zone areas in the world, particularly for industrial and manufacturing sectors. Today’s announcement reaffirms the longstanding partnership between our two countries, and signals to the world that Abu Dhabi and the UAE are vital to the future of global trade.”
“The foreign direct investment into industry will
contribute positively to Abu Dhabi’s non-oil GDP and help in diversifying the economy from oil,” Al Shamisi said.
The lease pact is the biggest yet signed at Kizad which has
a total area of 100 square
kilometres, Al Shamisi added.
Kizad, which opened in 2012, had attracted investments of around AED55 billion by the end of last year from countries including Brazil, India, Japan and Britain, Al Shamisi added.
China is UAE’s second largest trading partner and the biggest exporter to UAE. UAE is considered a gateway to about 60 percent of China’s exports to regional markets at an annual volume of exchange worth $70 billion, a statement from Abu Dhabi Ports said.