ADGM to set up offshore yuan center
UAE firm banks on B&R to boost ties with Chinese financial institutions
Abu Dhabi Global Market, an international financial center located in the capital city of the United Arab Emirates, launched its first overseas office in Beijing on Friday to spur liquidity and capital inflows into the Middle East and China.
“We are honored that Beijing is where we are establishing our first overseas presence to further Abu Dhabi and ADGM’s ongoing commitment to the Belt and Road Initiative. The China Office is an extension of ADGM’s role as a financial services regulator in supporting Abu Dhabi’s economic commitment to strengthening its regulatory and financial collaborations with the Chinese government and enterprises,” said Ahmed Ali Al Sayegh, chairman of Abu Dhabi Global Market, at the opening ceremony of the ADGM China Office.
“One of the key commitments of ADGM will be to support the renminbi internationalization strategy, and we aim to build up an offshore yuan center serving the Middle East and North Africa region,” Al Sayegh said.
Also on Friday, ADGM signed MOUs for collaboration with several Chinese companies and institutions including the Shanghai Stock Exchange, the Asian Financial Cooperation Association, and Guotai Junan Securities Co Ltd.
Opened for business in October 2015, ADGM has established close cooperation with nearly 100 Chinese financial institutions and enterprises and has had deep discussions with the top 10 institutions in each of the following key sectors including banking, asset management, investment banking, insurance and fintech. During the next three or four quarters, a group of Chinese companies will emerge from these institutions to expand their global footprint to Abu Dhabi, said Calvin Fu, chief representative of ADGM China Office.
“Following the example of successful and prudent operation of these pioneering companies, we hope to introduce more Chinese private companies to Abu Dhabi, based on comprehensive display of the potential of economic and financial cooperation between China and the UAE along the Belt and Road,” Fu said.
China represents a key strategic partner to the UAE. Since the two countries established a formal relationship in 1984, bilateral trade has increased from $63 million to more than $50 billion in 2017, according to Ali Obaid Al Dhaheri, UAE ambassador to China.
While China is the UAE’s largest trading partner, the UAE has remained China’s second largest trading partner and largest export market in the West Asia and North Africa region for many years. It is also the largest investment destination country in the Middle East for China.
Fan Wenzhong, directorgeneral of the international department of the China Banking and Insurance Regulatory Commission, said the regulator is stepping up efforts to promote the expansion of Chinese banking and insurance institutions along the Belt and Road.