AIM, China, Sign Belt & Road Investment MoU

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Coup for China in Middle Eastern BRI Promotions

Annual Investment Meeting (AIM), the Dubai based investment platform, and China Venture Capital Research Institute (CVCRI) have signed a memorandum of understanding (MoU) for a long-term strategic partnership to share resources and to boost investment opportunities within the Belt and Road Initiative (BRI).

The MoU was signed between Walid Farghal, director general of AIM, and Jihong Ding, president of CVCRI, and is expected to attract Chinese venture capitalists and private equities looking for investment opportunities in different parts of the world.

Walid Farghal, director general of AIM, said: “UAE-China ties are set for next level with the recently signed agreements in several key sectors like space, construction, tourism, healthcare, clean energy, oil and environment. The MoU opens a flood of opportunities for investors and countries to find feasible projects for portfolio investments, and invest in Future City projects or tie-up with start-up companies aiming for global operations. BRI at AIM will be a linking platform for investors and Chinese companies seeking viable infrastructure projects for investments that are mutually beneficial for them.”

Jihong Ding said: “I am honoured to have a partnership with AIM, and look forward to developing the ties between UAE and China. We are expecting 500 top venture capitalists and private equities to attend the upcoming 10th edition of AIM, which includes a special Belt & Road event aimed at helping investors in identifying potential investment opportunities within the BRI.”

Founded in 2003, CVCRI is committed to providing excellent services for the theoretical and practical development and policy formulation of China’s venture capital business, and promoting the healthy and rapid development of China’s venture capital and high-tech industries. CVCRI maintains strong ties with more than 3,000 investment institutes, and nearly 10,000 innovative enterprises are docked on its platform, both in China and overseas.

China considers UAE as an important partner in the BRI, and UAE is home to 6,000 Chinese companies, most of them based in Dubai. The volume of China-UAE bilateral trade has reached $11.2 billion in the first quarter of 2019, a 16 per cent hike compared to previous year.

In the first five months of the year, the bilateral trade was worth $19 billion, up by 11.37 per cent, compared to the same period last year.

Large energy companies such as China National Offshore Oil Corporation, Zhenhua Oil and a state-owned investment company, CITIC, have all set up offices in Abu Dhabi since 2018, while China Machinery Engineering Corporation, CMEC, opened an office in Dubai. China Railway Construction Corporation, China Railway Construction Engineering Group, Power China and China Energy Engineering Corporation are also sending more employees to the UAE market due to new projects.

AIM and its special BRI event will facilitate these investment opportunities within BRI, besides strengthening the bilateral ties between the UAE and China. BRI transport projects can expand trade, increase foreign investment, and if fully implemented, it could increase global trade between 1.7 and 6.2 per cent, while increasing global real income by 0.7 to 2.9 per cent.

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Silk Road Briefing is written by Dezan Shira & Associates. The firm provides strategic analysis, legal, tax and operational advisory services across Eurasia and has done since 1992. We maintain 28 offices throughout the region and assist foreign governments and MNC’s develop regional strategies in addition to foreign investment advice for investors throughout Asia. Please contact us at asia@dezshira.com or visit us at www.dezshira.com

 

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