China will be setting up a state-owned financial service firm in United Arab Emirates (UAE) Abu Dhabi’s financial hub. This firm will provide lending facilities to Chinese companies operating in the emirate’s industrial zone.
Abu Dhabi Global Market (ADGM) stated that the company has been approved by its Financial Services Regulatory Authority for conducting the regulated activities of offering and arranging credit through the ADGM platform.
According to the reports, the firm aims to provide strategic investment and financial assistance to Chinese enterprises as a part of the Belt and Road Initiative.
East China’s Jiangsu provincial government-owned ‘The Industrial Capacity Co-operation Financial Group Limited’ (ICCFG) will be the very first of such Chinese financial services firm in the UAE bank free zone ADGM.
“ADGM remains committed in enhancing the cross-border connectivity and creating new opportunities between the two economies,” said Ahmed Al Sayegh, Chairman of ADGM in Abu Dhabi.
The deal has been signed by the chairman of China Jiangsu International Wang Bin and Ahmed Al Sayegh.
Al Sayegh also exclaimed that as a part of Abu Dhabi’s economic blueprint, ADGM is glad to contribute constructively to the Belt and Road Initiative and work closely in association with their Chinese partners which will help them in fulfilling business goals.
“The Capacity Cooperation Demonstration Zone serves as a vital bridge between China and the UAE, and it is a vital measure supporting the Belt and Road Initiative,” said Wang. “In the future, we expect about 2 billion U.S. dollars of investment will be managed by this financial services platform to support the Chinese enterprises in the Demonstration Park,” he added.
ADGM was launched in 2013 and was fully open for business since 2015. It is the UAE’s second financial free zone behind the 2004-founded Dubai International Financial Center.