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Mon 14 Dec 2015 02:58 PM

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UAE, China to set up $10bn joint strategic investment fund

Fund will be administered and managed by Abu Dhabi state fund Mubadala and a subsidiary of China Development Bank

UAE, China to set up $10bn joint strategic investment fund

The United Arab Emirates and China have launched a joint strategic investment fund worth $10 billion, the two countries said in a joint statement on UAE state news agency WAM.

The fund will be administered and managed by Abu Dhabi state fund Mubadala and a subsidiary of China Development Bank, the statement said.

The goal behind the initative, in which both parties are providing equal financing, is to build a balanced fund that incorporates diversified commercial investments and covers a spectrum of growing sectors.

"The formation of this investment fund is a reflection of the growing partnership between the UAE and the People’s Republic of China," said Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.

"The strong foundations of our relationship have been reinforced by our growing economic ties and deepening political relations. 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."

Since formal diplomatic relations between the UAE and China were established in 1984, bilateral trade between the two countries has grown from $63 million to $54.8 billion today, and is expected to reach $60 billion by the end of the year.

"This dynamic investment fund will serve to further strengthen and deepen the strategic and economic relationship between China and the United Arab Emirates," added Xi Jinping, President of the People’s Republic of China. "This fund will also play a critical role in supporting the ‘One Belt, One Road’ strategic initiative, as we work towards improving connectivity and cooperation with our regional partners across Eurasia."

* With Reuters