Gulf Finance House and Gulf Energy power ahead with USD 5 billion Energy City China

Marking its strategic first investment in the world's fastest growing economy, Gulf Finance House, in association with Gulf Energy, signed a Letter of Intent with the Management Committee of Yanjiao Economic & Technology Development Area, Sanhe City, (close to Beijing City) establishing a partnership to drive forward the ground breaking project.

The commemorative ceremony was held at the monumental Great Hall of the People in Beijing, the parliament building for legislative and ceremonial activities held by the Chinese government. This hall has witnessed the signing of numerous significant agreements between international institutions and companies such as Microsoft, Airbus, Boeing and others.

The Letter of Intent was signed by Mr. Zhang Jinbo, Mayor of Sanhe City, and Mr. Esam Janahi, Chief Executive Officer and Board Member of Gulf Finance House, in the presence of Arab ambassadors and Asian businessmen from the finance and energy sector.

Located in the Yanjiao business district, 30 kilometres from the heart of Beijing, the 13.4 square kilometres Energy City China development will house a purpose-built, integrated business center constructed specifically to meet the needs of local and international energy companies.

In addition, Energy City China's Residential Zone will include villas, houses and apartments, shopping malls, first class healthcare and leisure facilities, library, cultural and exhibition centers.

"Today's agreement represents an important milestone in Sino-Arab trade relations and is an historic achievement for Gulf Finance House. China is widely recognized as a political and economic superpower and a key energy market. For the first time ever, China's energy industry will boast its own business and residential hub, designed specifically for oil and gas companies,"

commented Mr. Janahi.

Both parties agree Energy City China is likely to trigger further Arab investment in China. "To date Gulf investments in China have remained relatively low, in spite of China having invested over US$7 billion in the Gulf. China's oil requirements will rise to 7.3 million oil barrels per day by 2020, a key factor in Gulf Finance House's decision to create Energy City China. With more than 50 per cent of that oil supply expected to come from the Middle East, China is an attractive commercial opportunity for Middle East energy companies," commented Mr. Janahi.

The Letter of Intent marks a major step forward for a project that will make a significant contribution to the energy market within China.
Highlighting the timeliness of the Energy City China agreement, Mr. Zhang Jinbo, Mayor of Senhe City, said: "Over the years China's energy industries have matured significantly. With the country's energy demands expected to triple in the next 20 years, we welcome this initiative by Gulf Finance House."

"Energy City China will share the prosperity in the growth of the energy sector in China and provide the appropriate business infrastructure for the Chinese energy sector; enhancing our energy trading links with the Middle East's oil and gas producing countries and key Asian energy markets. Energy City China is a shining example of the growth in foreign investments in our country and China's immense potential in this sector."

"China has always had healthy trade relations with the Middle East. Today we are proud that one of the region's leading banks, Gulf Finance House, has taken the initiative to develop a project of this magnitude in China," added Mr. Zhang Jinbo.

With world class architectural design, 21st century business and residential facilities combined with cutting edge communication technology, Energy City China will address the infrastructure needs of Asia's leading energy related companies and provide the right platform and focal point for international energy companies to locate, invest and work together.

Commenting on the Energy City concept, Mr. Steve McMillan, CEO, Gulf Energy, stated, "Energy City China will be a development dedicated to the world's foremost energy companies, supporting China's position in the global energy market and positioning Energy City China at the forefront of the Asian hydrocarbon industry."

"A development such as Energy City must be located in a country with substantial energy reserves and requirements and a country open to foreign investment. China is therefore the natural location for an Energy City in Asia."

Key business facilities within Energy City China will include:
•An Energy Data Bank, collecting and disseminating energy-related information and data,
•An Energy Monitor Center, providing real-time energy market information, analysis and data gathering from around the globe,
•An Energy and High Tech Bank, to develop energy and high tech related investment products, Real Estate development and Private equity
•A Financial Service Center, accommodating leading banking and insurance industry companies,
•An International Mercantile Exchange (IMEX), a dedicated energy platform trading an innovative range of energy products, that would be established subject to regulatory and governmental approvals,
•A Science and Technology Park, bringing together the very best scientific excellence in the energy sector in collaboration with leading universities, research institutes and energy industry players,
•A Sino-Arab International Business School, offering world class business education with English, Chinese and Arabic as course languages.
Commenting on Energy City China's future development, Mr. Janahi stated: "We are currently working with our Chinese consultants to finalise the specific components of the project, after which we will commence the master-planning exercise. We are assessing potential sites for suitability and expect to conclude site acquisition very soon. We are looking at an investment of up to US$ 5 billion for this landmark development and I personally look forward to working with the Yanjiao Economic & Technology Development Area to make Energy City China a reality."