Chinese companies invest $1.7bn in China-UAE project at Kizad
China-UAE Industrial Capacity Cooperation Demonstration Zone has attracted 20+ Chinese firms since its 2018 launch
Chinese companies have invested more than $1.7bn (AED6.2bn) in the jointly developed China-UAE Industrial Capacity Cooperation Demonstration Zone Project within Khalifa Industrial Zone Abu Dhabi (Kizad).
According to UAE state-run news agency, Wam, the project – established in cooperation with Jiangsu Provincial Overseas Cooperation and Investment Company (Jocic) – has attracted more than 20 Chinese companies since it was officially launched last year.
Investors include Chinese tyre manufacturer Roadbot, which will develop a tyre manufacturing facility that is due to enter operation in October 2020, with a total value of $598.9m (AED2.2bn).
Last year also saw Abu Dhabi Ports and Cosco Shipping Ports Ltd – a subsidiary of Hong Kong-headquartered Cosco Group – open the CSP Abu Dhabi Port Container Terminal at the zone, in a move that positioned Abu Dhabi as the regional hub for Cosco’s global network of 36 ports.
Wam reported the agreement was part of Abu Dhabi Ports’ five-year strategy, aimed at strengthening the maritime sector in Abu Dhabi under the emirate’s ongoing economic diversification strategy.
With this in mind, Abu Dhabi Ports has earmarked $2.7bn (AED10bn) in investment that will increase capacity at Khalifa Port from the current five million twenty-foot equivalent unit (TEU) to 9.1 million TEU.
This also includes boosting capacity at Terminal 1 to more than five million TEU.
Other recent China-UAE related announcements include Chinese manufacturing firm East Hope Group's work with Kizad to explore the possibility of setting up a development worth $10bn (AED36.7bn) within the industrial hub.
The three-phased project – in line with the UAE's and China's cooperation on the Belt and Road Initiative – will see the Chinese firm constructing various manufacturing facilities across a 7.6km2 piece of land in Kizad over a 15-year period.