UAE targets $2bn of new deals in China

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CHINA INVESTMENT: The UAE is seeking $2 billion worth of new deals in China, officials have said.

UAE business leaders are seeking $2 billion worth of new deals in China, with under performing companies being targeted for acquisition in the next six months, officials have told ArabianBusiness.com in Beijing.

The UAE is set to ink several agreements with China over the coming days when the ruler of Dubai meets with Chinese leaders during a four-day state visit to the People’s Republic, which started on Monday.

Sheikh Mohammed bin Rashid Al-Maktoum, also vice president prime minister of the UAE, is being accompanied by a 50-strong business delegation as the UAE looks to forge stronger economic ties with the world's fastest growing economy.

Key business leaders, including Dubai International Capital (DIC) CEO Sameer Al Ansari, Isthimar CEO David Jackson and Jumeirah International Chairman Gerald Lawless, flew to China on Sunday morning in advance of Sheikh Mohammed's arrival.

Speculation is mounting that a special Dubai-China investment fund will be announced in the next few weeks, set up purely for investments into Chinese companies.

Chinese companies across a host of sectors, from construction and manufacturing, to leisure and retailing are believed to be on a "hit list", officials have said.

“There has been a lot of acquisition activity in the West, and a lot of negotiations still taking place about buying key assets. But the best place to extract value from companies is China, which is why we are all going there," one senior delegate said, speaking to ArabianBusiness.com on board the specially converted Boeing 747-400 during the seven hour flight from Dubai to Beijing.

"You will see a lot of big announcements and big deals being done in the coming months.”

He added: “Most of the things that could be bought in places like Europe have already been bought. If we are to go in and turn companies around, then the starting place today is East, not West.”

UAE government officials are expected to make an initial announcement on new trade initiatives with China later on Monday at a media briefing being held at 3:00 pm Dubai time.

China was Dubai's second biggest trading partner in 2007 for the third year running, with non-oil trade increasing by 47% to reach 71.2 billion UAE dirhams ($19.4 billion), according to state-owned conglomerate Dubai World.

Dubai World said China was the biggest importer of goods into Dubai last year, worth 69.9 billion dirhams, while it was the emirate's 12th biggest export destination, worth 661.2 million dirhams.

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