Abu Dhabi Global Market (ADGM) has announced the establishment of the first Chinese state-owned financial services firm to provide investment and financial support to Chinese enterprises as part of the Belt-and-Road initiative.
The state-owned financial services firm, known as the Industrial Capacity Cooperation Financial Group Limited (ICCFG), is the first such Chinese company to be approved by the Financial Services Regulatory Authority of ADGM, to provide and arrange credit via the ADGM platform.
The firm, which is expected to be up and running by the end of 2018, is set to manage about $2 billion of investment. It also intends to scale up its services and presence in other Belt and Road-related industrial capacity zones in the near future.
State news agency WAM reported that the ICCFG will play a critical role in providing lending facilities to support the investment and financial needs of Chinese enterprises established in the zone located in the Khalifa Industrial Zone of Abu Dhabi (KIZAD).
The agreement was signed by Bin Wang, chairman of China Jiangsu International and Ahmed Al Sayegh, chairman of ADGM in Abu Dhabi.
Al Sayegh said: "The ICCFG will support the anchoring of more Chinese enterprises in Abu Dhabi seeking commercial opportunities along the Belt and Road route including the MENA region. ADGM remains committed in enhancing the cross-border connectivity and creating new opportunities between the two economies."
Wang added: "We are pleased to advance this new cooperation with our important partner, ADGM, and look forward to the operations of the financial services platform by the end of 2018.
"In the future, we expect about $2 billion of investment will be managed by this financial services platform to support the Chinese enterprises in the Demonstration Park," he added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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