A Chinese company has agreed to lease land within the Khalifa Port Free Trade Zone (KPFTZ) for US$300 million on behalf of five Jiangsu companies, according to Reuters.
State-run terminal operator Abu Dhabi Ports is the developer, operator and manager of the United Arab Emirates' commercial and community ports.
This includes the Khalifa Industrial Zone (KIZAD), which opened in 2012.
Within KIZAD, the UAE port operator has signed a 50-year agreement with a new company called Jiangsu Provincial Overseas Cooperation & Investment Company (JOCIC).
Another company newly established by JOCIC, China-UAE Industrial Capacity Cooperation (Jiangsu) Construction Management Company, will occupy and develop an area for use by Chinese firms under the deal.
JOCIC plans to lease 2.2 square kilometers within KIZAD, for sub-letting to five Chinese companies from Jiangsu region.
The companies involved in the sub-let deal are from various industries, including energy, metals and banking.
They are Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development (Group) Co Ltd, Xuzhou Jianghe Wood Co, Jiangsu Jinzi Environmental Technology Co and Guangzheng Group.
Abu Dhabi Ports' latest deal includes the option for the construction management to establish and develop a further area within KIZAD Area B to meet additional demand by Jiangsu province businesses.
Chinese companies have seized upon the potential of the Gulf Region within large-scale trade ambitions under the Chinese Government’s One Belt, One Road initiative.
China is the UAE’s second largest trading partner as well as the biggest exporter to the UAE, considered a gateway to about 60% of China’s exports to regional markets at an annual volume of exchange of $70 billion.
This is not the only deal with Asian entities currently in discussion for Abu Dhabi Ports. Chief Executive Officer Mohamed Juma Al Shamisi in a recent interview mentioned a planned deal to capitalise on Africa’s exports to Asia.
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