China invests US $300m in Abu Dhabi’s Khalifa Port
Abu Dhabi Ports has signed an investment cooperation agreement with Jiangsu Province to strengthen economic ties and build investment projects through joint opportunities for both the UAE and Chinese industries.
Initial investments from five companies from the province will bring $300 million (AED 1.1 billion) to Abu Dhabi’s Khalifa Port Free Trade Zone, creating more than 1,400 jobs.
China-UAE Industrial Capacity Cooperation Construction Management Co., Ltd., a UAE company newly established by the Jiangsu Provincial Overseas Cooperation and Investment Company Limited (JOCIC), will occupy and develop approximately 23.7 million square feet of the free trade zone for companies from the Chinese province of Jiangsu.
This represents 2.2% of the available free zone space in KIZAD’s newly allotted Khalifa Port Free Trade Zone (KPFTZ) area.
A 50-year Musataha Agreement was also created, signed by Abu Dhabi Ports with JOCIC, in Khalifa Port Free Trade Zone.
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, Peng Xiangfeng, president of China Jiangsu International E.T.C.G and Luo Hua, general manager of Jiangsu Province Overseas Cooperation and Investment Company Ltd were the signatories of the lease agreement.
Representatives from five Chinese tenant companies announced their plans to invest in the lease space, including Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development (Group) Co. Ltd., Xuzhou Jianghe Wood Co. Ltd., Jiangsu Jinzi Environmental Technology Co. Ltd., and Guangzheng Group.
The five companies signed with JOCIC as the frontrunners in taking advantage of the agreement’s highly competitive trade benefits.
Captain Mohamed Juma Al Shamisi said: “The Musataha agreement between Abu Dhabi Ports and JOCIC is one of the largest-ever lease agreements for KIZAD to date. This investment will drive trade relations with Jiangsu and accelerate investment in industrial assets in Abu Dhabi.”
Combined, the new tenants will inject over a billion dirhams ($300 million) into KPFTZ, creating over 1,400 jobs, broadening the financial and physical scope of the zone while bolstering its ties to the “Belt and Road” initiative.
“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 the industrial and manufacturing sectors,” said Dr. Sultan Ahmed Al Jaber. “This 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.”
China is the UAE’s second largest trading partner and the biggest exporter to the UAE. The UAE is considered a gateway to about 60% of China’s exports to regional markets at an annual volume of exchange of $70 billion dollars. Trade and economic relationships between the two companies are strengthening as part of the ‘Belt and Road’ and ‘Maritime Silk Road’ initiatives.