Chinese companies invest $300 million in industrial zone in Abu Dhabi

Almaty. July 31. Silkroadnews – Chinese companies invest $300 million in industrial zone in Abu Dhabi, Reuters reported.
“Five Chinese companies will start operations in Abu Dhabi's industrial zone with an initial investment of $300 million in a boost for the oil-rich emirate's economic diversification plans”, the report said.
As Abu Dhabi representatives note, companies from Jiangsu province on the east coast of China, which will be represented in the industrial zone, operate in various sectors of the economy from energy and metals to natural resources and banking services.
The Chinese companies are said to increasingly use the opportunities provided in the Persian Gulf. Thus, Abu Dhabi Ports signed a 50-year lease agreement with the Jiangsu Provincial Overseas Cooperation & Investment Company (JOCIC) for 2.2 square kilometers (0.8 square miles) in the industrial zone of Khalifa Abu Dhabi. In turn, JOCIC signed separate agreements with five Chinese companies: the energy group Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development (Group) Co Ltd, Xuzhou Jianghe Wood Co, Jiangsu Jinzi Environmental Technology Co and Guangzheng Group.
Last year, China’s Cosco Shipping Ports Limited won a 35-year concession for the construction and operation of a new container terminal in the port of Khalifa, Abu Dhabi. Cosco said that time it planned to invest more than $700 million.
At the end of 2015, the UAE and China also created a $10-billion joint strategic investment fund equally financed by both countries.
The lease agreement is the largest yet signed in Kizad, which has a total area of 100 square kilometers.
China is the second largest trading partner of the UAE and the largest exporter to the UAE. The UAE is considered to be a gateway for about 60% of China’s exports to regional markets with an annual turnover of $70 billion.
As reported, last week a consortium of eight Chinese enterprises signed an agreement with the Tian Tang Group on investing in the Mbale industrial park in eastern Uganda. Tian Tang Group received a mandate to develop 619 acres of industrial park to accelerate the creation of jobs in the country. The park with a total investment of S600 million should accommodate 30 enterprises and create 12,000 jobs for Ugandans.