The UAE and China on December 14 agreed to launch a $10 billion strategic co-investment fund to enhance the economic and political ties between the two nations.
The agreement was signed during an official visit to China by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and a delegation of ministers, reports state news agency WAM.
The Chinese President Xi Jinping was also present at the signing ceremony of the UAE-China Joint Investment Cooperation Fund.
“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 Mohammed bin Zayed, adding that both the countries will step up their cooperation and will work more closely to develop their economies.
President Jinping hoped the fund will deepen the strategic and economic relationship between China and the UAE, whose bilateral trade stands at $54.8bn today and is expected to reach $60bn by the end of the year. It was $63 million in 1984 when the two countries first established formal bilateral diplomatic relations.
“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,” adds President Jinping.
The Chinese leader’s ‘One Belt, One Road’ plan focuses on connectivity and cooperation among countries, primarily in Eurasia, which also includes Middle Eastern states.
Dr Sultan Al Jaber, Minister of State, who is also part of the delegation, said that the UAE is a strong supporter of the strategic plan.
Both nations have also signed nine agreements during the Abu Dhabi Crown Prince’s three-day visit.
The UAE-China Joint Investment Cooperation Fund, which will focus on conventional and renewable energy, infrastructure, technology and advanced manufacturing, 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).