- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:25 06:43 12:11 15:09 17:32 18:50
In the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Xi Jinping, President of the People’s Republic of China, an agreement has been signed to launch a $10 billion (Dh36.7 billion) strategic co-investment fund, which will further strengthen the economic and political ties between the two nations.
The agreement, which was signed during an official visit to China by His Highness Sheikh Mohamed bin Zayed Al Nahyan and a delegation of ministers from the UAE, was signed by Dr. Sultan bin Ahmed Sultan Al Jaber, Minister of State, and Xu Shaoshi, Chairman of the National Development and Reform Commission, NDRC.
"The formation of this investment fund is a reflection of the growing partnership between the UAE and the People’s Republic of China," said His Highness Sheikh Mohammed bin Zayed.
"The strong foundations of our relationship have been reinforced by our growing economic ties and deepening political relations. The launch of this strategic, commercially driven fund represents the next stage of our partnership as we seek to work more closely in developing our economies and contributing to global growth."
Since formal diplomatic relations between the UAE and China were established in 1984, bilateral trade between the two countries has grown from $63 million in 1984 to $54.8 billion today, and is expected to reach $60 billion by the end of the year.
"This dynamic investment fund will serve to further strengthen and deepen the strategic and economic relationship between China and the United Arab Emirates," said Xi Jinping, President of the People’s Republic of China.
"This fund will also play a critical role in supporting the ‘One Belt, One Road’ strategic initiative, as we work towards improving connectivity and cooperation with our regional partners across Eurasia."
The UAE-China Joint Investment Cooperation Fund will be managed and operated by Mubadala Development Company, the Abu Dhabi based investment and development company, China Development Bank Capital, CDBC, and China’s State Administration of Foreign Exchange, SAFE.
The new investment platform, which will be equally funded by the Governments of Abu Dhabi and China, aims to build a balanced portfolio of diversified commercial investments in a range of growth sectors.
"The fund will play a crucial role in supporting the development and advancement of sectors of mutual strategic interest for the UAE and China, such conventional and renewable energy, infrastructure, technology and advanced manufacturing," said Dr. Al Jaber. "The fund will also help contribute to the ongoing diversification of the UAE economy."
The fund will have the flexibility to look at a range of investment opportunities across asset classes, stages of growth and industry sectors of strategic importance for the United Arab Emirates and China. Capital will be deployed on an investment-by-investment basis, with a focus on sustainable returns and principal protection.
"This new chapter in the China-UAE relationship will help identify and unlock opportunities for joint investments globally," said Xu Shaoshi. "Our collaboration in sectors of mutual interest will help ensure the long-term sustainable and diversified economic development of both countries."
The creation of a co-investment fund builds on wider efforts to strengthen economic relations between the two countries. In June, the UAE became a founding member of the Asian Infrastructure Investment Bank, AIIB, a new multilateral development bank initiative launched by the Chinese Government.
Follow Emirates 24|7 on Google News.