Ease of doing business boost for Chinese firms

Abu Dhabi Ports and Jocic sign agreement with ICBC

Abu Dhabi Ports and Jiangsu Overseas Cooperation Investment (Jocic), have signed a five-year agreement with Industrial and Commercial Bank of China (ICBC) to make it easier and quicker for Chinese companies to do business at Khalifa Industrial Zone (Kizad), Abu Dhabi's integrated trade, logistics, industrial and free zone.

Abu Dhabi Ports, the operator, and manager of the emirate's commercial and community ports, and its subsidiary Kizad have already established with Jocic a 2.2sqkm China-UAE Industrial Capacity Cooperation Demonstration Zone at Kizad under a 50-year agreement. The zone forms part of the UAE's support for China's Belt and Road Initiative and aims to attract more trade and investment to Abu Dhabi. The agreement also reiterates the strategic position played by the emirate to the major trade hubs along with the initiative.

During the recent state visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to China, an MoU was signed by Falah Mohammad Al Ahbabi, chairman of Abu Dhabi Ports; Wang Bin, chairman of Jocic; and Chen Siqing, chairman of ICBC, making Kizad even more attractive for foreign investors.

Through its branches in Abu Dhabi and Jiangsu, ICBC - the world's largest bank by assets - will provide services for firms being incorporated at Kizad by becoming a preferred banking partner of Abu Dhabi Ports and Jocic. Al Ahbabi said Abu Dhabi's strategic location and commitment to the Belt and Road Initiative has placed the emirate in an advantageous position on the global trade map.

"Our agreement with ICBC is another successful achievement of these efforts, since navigating finance and banking can be a major obstacle for firms looking to enter into a new market."

Wang said the UAE is attracting Chinese investment through our industrial cooperation zone at Kizad thanks to strong confidence and sound industrialization policies, as well as its commitment to economic diversification.

"The country, located at the meeting point of Europe, Asia, and Africa, also has a welcoming business environment and is a hub for numerous industries, such as shipping logistics, finance, and technology. This makes the UAE both an important platform for Chinese enterprises looking to enter Europe and Africa, and a critical gateway through which European and African enterprises can explore the Chinese market," he said.

"We are proud to be helping Chinese enterprises grow their businesses overseas efficiently and effectively through the demonstration zone at Kizad."

From the financing perspective, this significant agreement will provide ICBC with a unique opportunity to help Chinese enterprises better understand the opportunities presented by Kizad and support their investments in industry, trade, and logistics.

Under the agreement, the bank will also help potential investors understand the banking sector in the UAE and will have a dedicated liaison team for clients of Abu Dhabi Ports, who will receive priority treatment from ICBC. The bank, Abu Dhabi Ports and JOCIC will also work together to simplify application processes for services ranging from foreign exchange to financial consultancy and project finance, including speeding up the sourcing and processing of documents, such as those used to grant land rights within Kizad.

The bank will also support Abu Dhabi Ports' clients looking to set up in China.

The agreement is the latest agreement between Abu Dhabi Ports and a major Chinese company. Earlier in the year, Roadbot broke ground on a new tire manufacturing plant at the China-UAE Industrial Capacity Cooperation Demonstration Zone.