Khalifa Industrial Zone Abu Dhabi (KIZAD) has signed a memorandum of understanding with Bank of China to provide financing to Chinese, international and local companies setting up operations in its free zone.
The deal will see China’s fourth largest bank by assets provide services including loans, trade financing, international trade settlement and dirham clearing in support of China’s One Belt One Road initiative.
The UAE is considered a key link in the development strategy to create modern day maritime and land-based silk roads stretching from China to Europe and Africa.
“The UAE is one of the most important countries in building the One Belt One Road initiative. Both the UAE and China are working together to coordinate their strategies,” said Gao Xiaoming, General Manager of Bank of China – Abu Dhabi.
“Bank of China Ltd – Abu Dhabi is already the exclusive financial institution of the China-UAE Industrial Capacity Cooperation Construction Management Co Ltd. We are looking forward to developing more opportunities to support the local economy of the UAE, including the development of KIZAD.”
China is the UAE’s second largest trading partner and the biggest exporter to the country, while the UAE is a gateway for 60 per cent of China exports to regional markets, according to the announcement.
The two sides have signed several agreements in recent years following a 2015 visit to China by Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces HH Sheikh Mohammed bin Zayed Al-Nahyan.
These include the awarding of a 35-year terminal concession at Abu Dhabi’s Khalifa Port to China’s Cosco Shipping Ports in September 2016 and a more recent deal to establish China-UAE Industrial Capacity Cooperation Construction Management Co to occupy and develop 2.2 square kilometres of Kizad’s port free zone.