An investment cooperation agreement has been signed between master developer, Abu Dhabi Ports, and the Jiangsu Province of China to invest AED1.1bn into the Khalifa Port Free Trade Zone (KPFTZ).
The signing ceremony included the presence of prominent members from both parties involved in the agreement, such as HE Dr Sultan Ahmed Al Jaber, Minister of State and chairman of Abu Dhabi Ports and Madame Huang, Lixin, executive vice governor of the Jiangsu Provincial Peoples Government, as well as a number of officials from either side.
The deal is a strategic one between the two countries, who hope to aid each other in economic advancement through the establishment of the 50-year Musataha Agreement, signed by Abu Dhabi Ports and the Jiangsu Provincial Overseas Cooperation and Investment Company Limited (JOCIC).
Under the stipulations of the agreement, 23.7mn sqft of space in the Khalifa Industrial Zone Abu Dhabi (KIZAD), adjacent to the Khalifa Port, will be leased to the UAE-based company, newly established by the JOCIC, China-UAE Industrial Capacity Cooperation (Jiangsu) Construction Management Co., Ltd.
Five companies set to invest in the newly leased space, which makes up only 2.2% of available free zone space in the KPFTZ area, were also represented at the signing ceremony. These companies included Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development Co. Ltd., Xuzhou Jianghe Wood Co. Ltd., Jiangsu Jinzi Environmental Technology Co. Ltd., and the Guangzheng Group.
These companies will be the first to take advantage of the vast benefits of such a lucrative economic opportunity. The agreement serves to strengthen ties between the UAE and China, after Chinas reinvigoration of the Silk Road initiative and the Belt and Road initiative. The agreement complements the common desires of both nations to speed up economic advancement and attract more industrial investment, as well as build upon trade relations.
Commenting on the signings, HE 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 the industrial and manufacturing sectors. Todays announcement reaffirms the longstanding partnership between our two countries, an signals to the world that Abu Dhabi and the UAE are vital to the future of global trade.