U.A.E., China Create $10 Billion Strategic Investment Fundby
Fund seeking investments in energy, renewables, technology
Agreement follows plan to form $75 billion India fund
China and the United Arab Emirates agreed to create a $10 billion co-investment fund to make strategic deals around the world as the Gulf nation seeks to strengthen ties with its largest trading partners.
The U.A.E.-China Joint Investment Cooperation Fund will be managed by Abu Dhabi’s Mubadala Development Co., China Development Bank Capital, and China’s State Administration of Foreign Exchange, according to the U.A.E.’s state-run WAM news agency. It will seek investments in areas including conventional and renewable energy, infrastructure, technology and advanced manufacturing, with the governments of China and Abu Dhabi providing equal funding. The agreement was signed during a visit to China by Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.
“The launch of this strategic, commercially driven fund represents the next stage of our partnership as we seek to work more closely in developing our economies and contributing to global growth,” Sheikh Mohammed said in a statement carried by the agency.
China is the U.A.E.’s second biggest trade partner after India, according to data compiled by Bloomberg. The U.A.E. is also planning to create a $75 billion investment fund with India to invest in infrastructure in the South Asian country, according to a joint statement in August following a visit by Prime Minister Narendra Modi.