UAE-based Abu Dhabi Ports has entered an investment cooperation agreement with China's Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC) to bring an investment worth AED1.1bn ($299m) into the Khalifa Port Free Trade Zone (KPFTZ).
The new 50-year musataha agreement will see a new UAE-based company established by JOCIC known as China-UAE Industrial Capacity Cooperation (Jiangsu) Construction Management occupy and develop around 23.7ft² of KPFTZ space for companies from the Chinese province of Jiangsu.
The proposed investment will require roughly 2.2% of the available free zone space in Khalifa Industrial Zone Abu Dhabi’s (Kizad) newly allotted KPFTZ area.
Chinese companies Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development (Group), Xuzhou Jianghe Wood, Jiangsu Jinzi Environmental Technology and Guangzheng Group are expected to make the initial investment in the lease space as part of the new deal.
The planned investment is also anticipated to create more than 1,400 jobs, as well as boost the financial and physical scope of the area.
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Jiangsu Provincial People Government executive vice governor Huang Lixin said: “Jiangsu and Abu Dhabi are highly complementary to each other in terms of natural endowment, economic structure and industrial systems, bearing the common wishes to speed up industrial structural adjustment and promote economic transformation and upgrades.
“It is good timing for us to jointly deepen industrial capacity cooperation and promote the ‘Belt and Road’ initiative, and we will have a broad prospect in this undertaking.
“We will work together with Abu Dhabi to build the UAE-China Industrial Capacity Cooperation Demonstration Zone into a landmark programme of the ‘Belt and Road’ initiative and a beacon of UAE-China exchanges and cooperation.”
The musataha agreement features an option for Jiangsu to develop an additional 107,639,100ft² of free zone at KIZAD Area B in order to meet any additional demand by the Jiangsu province businesses.
Image: Deal signing between Abu Dhabi Ports and Jiangsu Provincial Overseas Cooperation and Investment Company representatives. Photo: courtesy of Abu Dhabi Ports.