Chi­nese firms in­vest­ing big in UAE

China Daily (Hong Kong) - - BUSINESS - By ZHU WENQIAN zhuwen­[email protected]­nadaily.com.cn

The China-UAE In­dus­trial Park in the United Arab Emi­rates, the first ca­pac­ity co­op­er­a­tion park in­volved in the Belt and Road Ini­tia­tive, will com­plete con­struc­tion of its main build­ing in June, and it has at­tracted the in­vest­ment of nearly 20 Chi­nese en­ter­prises.

With a to­tal in­vest­ment of nearly 7 bil­lion yuan ($1.03 bil­lion), the first batch of Chi­nese en­ter­prises, in­clud­ing com­pa­nies from sec­tors such as build­ing ma­te­ri­als, chem­istry and new en­ergy, have started con­struct­ing their plants in the in­dus­trial park, which is 60 kilo­me­ters from Abu Dhabi.

On Thursday, Jiangsu province­based New Chunx­ing Re­source Re­cy­cling Group, China’s largest com­pre­hen­sive uti­liza­tion en­ter­prise of waste lead-acid bat­ter­ies, signed an agree­ment in Bei­jing with the in­dus­trial park. It will in­vest 200 mil­lion yuan and es­tab­lish a waste lead-acid battery pro­cess­ing and re­cy­cling plant in the park.

New Chunx­ing Group signed an agree­ment with Jiangsu Pro­vin­cial Over­seas Co­op­er­a­tion and In­vest­ment Co Ltd (JOCIC), the en­ter­prise in charge of the man­age­ment of the park. New Chunx­ing said af­ter the fac­tory be­comes op­er­a­tional, it is ex­pected to net an­nual sales rev­enue of 900 mil­lion yuan, and the re­cy­cling rate of waste lead-acid bat­ter­ies will ex­ceed 99 per­cent.

“In­vest­ing abroad has be­come a ma­jor trend for Chi­nese en­ter­prises, as it can help them to ex­pand over­seas mar­kets and strengthen their po­si­tions. We be­lieve that in the new cy­cle of re­form and open­ing-up in the coun­try, more Chi­nese en­ter­prises will go global to grab the busi­ness op­por­tu­ni­ties in­volved in the Belt and Road Ini­tia­tive,” said Zhao Jian­jun, deputy di­rec­tor of Jiangsu Pro­vin­cial Devel­op­ment and Re­form Com­mis­sion.

Mean­while, Eti­had Air­ways, the Abu Dhabi-based na­tional air­line of UAE, and JOCIC signed cor­po­rate and freight ser­vices agree­ments.

The car­rier said it would pro­vide the com­pa­nies in­vest­ing in the in­dus­trial park with pre­ferred air trans­porta­tion and freight rates, as well as other as­so­ci­ated ben­e­fits on the routes and ser­vices be­tween China and the UAE. JOCIC and the com­pa­nies of the park will also choose Eti­had as their pre­ferred air­line, ac­cord­ing to the agree­ment.

Es­tab­lished in July 2017, with a 50-year agree­ment signed be­tween Abu Dhabi Ports and JOCIC, the in­dus­trial park is a ma­jor project un­der the Belt and Road Ini­tia­tive. It rep­re­sents an im­por­tant con­sen­sus reached by the lead­er­ship of China and the UAE to strengthen in­ter­na­tional in­dus­trial ca­pac­ity co­op­er­a­tion be­tween the two coun­tries, ac­cord­ing to JOCIC.

“The busi­ness en­vi­ron­ment is the prior fac­tor that en­ter­prises hav­ing in­ten­tions to in­vest abroad should con­sider about. The UAE has the best busi­ness en­vi­ron­ment in the Mid­dle East, and its busi­ness en­vi­ron­ment level ranks the 11th glob­ally last year,” said Zou Yong­gang, gen­eral man­ager of JOCIC.

“The in­dus­trial park boasts the low­est land rental prices lo­cally, and the costs of wa­ter, elec­tric­ity and la­bor are sig­nif­i­cantly lower than in China. En­ter­prises and in­di­vid­u­als that have in­vested in the park are also ex­empted from value-added tax and in­come tax,” Zou said.

The Chi­nese com­pa­nies in­vest­ing in the park come from var­i­ous sec­tors, such as alu­minum pro­cess­ing, ma­chin­ery man­u­fac­tur­ing, trade and lo­gis­tics, met­al­lurgy, pack­ag­ing, and food and bev­er­ages.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.