UAE signs $3.4 billion investment deal with China

The UAE and China have signed a $3.4 billion deal on the sidelines of the 2nd Belt and Road Forum for International Cooperation held in the Chinese capital Beijing.

The UAE delegation was headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

The first was signed by DP World's Group Chairman Sultan Ahmed bin Sulayem, and Wenge Zhao, Chairman of Zhejiang China Commodities to set up the ‘Traders Market’ in Dubai, according to Emirates News Agency (WAM). The Chinese partner in the new market, located opposite the Expo 2020 site, will invest $2.4 billion in using the station to store and ship Chinese products from Jebel Ali to the world.

The second agreement was signed by DP World's Group Chairman Sultan Ahmed bin Sulayem, with Ma Xuezhong, President of China-Arab Investment Fund Management Co. (Ningxia); Yu Zhiqiang, President of Winland Investment Holding Co.; and Hu Wei, China CO-OP Group President of Ocean Economic Development Co., to create a $1 billion 'Vegetable Basket' project in Dubai to import, process, pack and export agricultural, marine and animal products to the world through the new Silk Road, WAM added.

First proposed by Chinese President Xi Jinping in 2013, the Belt and Road Initiative is an ambitious effort to expand regional cooperation and improve connectivity on a global scale.

Through infrastructure investment and regional cooperation, the initiative has the potential to accelerate the rate of economic integration and development, as trade costs decline.

From 2013 to 2018, China’s direct investment in the Belt and Road Initiative’s (BRI) partner countries exceeded $90 billion, and generated $400 billion. In the past year, Chinese

companies invested $15.6 billion in BRI partner countries, reflecting a year-on-year growth of 8.9 per cent, WAM report added.

Under the Belt and Road Initiative, China has reached 173 agreements with 125 countries and 29 international institutions.