Chinese firms from Jiangsu to invest US$300m in industries in Abu Dhabi

[ABU DHABI] Abu Dhabi has attracted five Chinese companies to build diverse industries in its industrial zone with an initial investment of US$300 million as the oil-rich emirate pushes ahead with its economic diversification plans.

Chinese companies are increasingly seizing opportunities in the Gulf as the Asian economic giant seeks to expand overseas with its ambition to rebuild Silk trade routes.

Abu Dhabi Ports has signed a 50-year agreement with the Jiangsu Provincial Overseas Cooperation & Investment Company (JOCIC) to take a lease for 2.2 square kilometres at the Khalifa Industrial Zone Abu Dhabi (Kizad), Mohamed Juma al Shamisi, chief executive of Abu Dhabi Ports told Reuters.

JOCIC, will in turn sign separate agreements with the five companies, he said.

Abu Dhabi Ports Co manages Kizad as well as the ports in the emirate.

"The foreign direct investment into industry will contribute positively to Abu Dhabi's non-oil GDP and help in diversifying the economy from oil," he said.

The five Chinese companies from the Jiangsu province represent industries from sectors such as power, metals, natural resources and banking.

Last year, China's Cosco Shipping Ports Limited won a 35-year concession to build and operate a new container terminal at Abu Dhabi's Khalifa Port in the capital of the United Arab Emirates. Cosco, at the time said it plans to invest over US$700 million.

REUTERS