Chinese firms investing big in UAE
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.