The deal will enable manufacturing and development of the Khalifa Port Free Trade Zone in the United Arab Emirates, terminal operator Abu Dhabi Ports said in a statement.
Abu Dhabi Ports has signed a $300 million investment cooperation agreement with China for the Khalifa Port Free Trade Zone, the company said in a statement.
The agreement grants China-UAE Industrial Capacity Cooperation Construction Management Co., access to 23.7 million square feet of the free trade zone for development.
The agreement also includes the option for China-UAE Industrial Capacity Cooperation (Jiangsu) Construction Management Co., to establish and develop a further 107,639,100 square feet of free zone at KIZAD Area B to meet additional demand by Jiangsu province businesses, said Abu Dhabi Ports.
In total, the agreement will bring in $300 million in investments from five companies within the Jiangsu province. The five companies announced investment plans, including plans in mining development, wood and environmental technology, all while bolstering its ties to the “Belt and Road” initiative, they 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 the industrial and manufacturing sectors,” said H.E. Dr. Sultan Ahmed Al Jaber. “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.”
Furthermore, said H.E. Al Jaber, “the Musataha agreement between Abu Dhabi Ports and JOCIC will attract foreign investment into Abu Dhabi – an ideal environment for investment opportunities due to the competitive advantages KPFTZ enjoys, including its strategic location, world-class infrastructure and logistics solutions. Khalifa Industrial Zone and Khalifa Port are both expected to see a surge in global investments.”
China is the UAE’s second largest trading partner and the biggest exporter to the UAE, according to Abu Dhabi Ports. “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,” it said.
Abu Dhabi Ports has recently made other investment agreements, including taking over operations and infrastructure development at the Port of Fujairah, inaugurating a new multipurpose port at the Port of Delma and allowing COSCO Shipping to take a controlling stake in the joint venture company that will operate the new Khalifa Port Container Terminal 2.
Abu Dhabi Ports, China sign $300m investment deal
