The Abu Dhabi Investment Office (ADIO) announced two groundbreaking collaborations during the recently held Abu Dhabi Finance Week (ADFW) 2023. The partnerships are set to reshape the economic landscape in the UAE and enhance relations with China.
The agreements with Hong Kong-based ARTE Capital and China’s Construction Bank Corporation (CCB) underscore Abu Dhabi’s position as a global financial hub that is opening new avenues for economic cooperation between the UAE and China.
Enabling growth and facilitating expansion
The first major collaboration unveiled during ADFW involves ADIO partnering with ARTE Capital, one of Asia’s leading asset managers. This strategic alliance aims to establish ARTE Capital Middle East’s regional headquarters at Abu Dhabi Global Market (ADGM). Regulated by the Financial Services Regulatory Authority (FSRA), ARTE Capital Middle East will manage assets, and investment funds. It will also arrange deals and credit as well as provide advisory services.
Partnership to raise $1 billion alliance
Through the ARTE China-Arab Strategic Fund, ARTE Capital plans to raise a $1 billion fund that will help Chinese companies expand in the Middle East. ARTE Capital in ADGM will manage the fund and ARTE Capital Group’s investors will invest in it. This move aligns with the expanding economic ties between the UAE and China. Non-oil bilateral trade between the UAE and China has growth 18 percent in 2022, valued at $72 billion.
ADIO’s commitment to this collaboration involves providing growth-enabling support to ARTE Capital Middle East. By leveraging fund, ADIO aims to facilitate the expansion of Chinese companies in the region. This further solidifies the economic ties between the UAE and China.
ADIO and CCB International foster strong economic ties
In a parallel move, ADIO has inked a strategic agreement with CCB International. It is an investment services company owned by CCB. This collaboration aims to boost Chinese investment in Abu Dhabi and foster stronger economic ties between the two regions.
ADIO and CCB International are set to focus on supporting companies in key sectors of mutual interest, such as industrials. Some key sectors also include renewable energy, ICT, cloud computing, smart mobility, and e-commerce. The partnership will also facilitate fund-raising and dual or secondary listings of Chinese companies in Abu Dhabi Securities Exchange (ADX), and vice versa.
Mitchel Seah, CEO of CCB International states: “We are extremely excited at the opportunity to promote the development of ‘The Belt and Road’ initiative and to deepen the financial cooperation between China and the UAE.”
ADIO opened an office in Beijing in 2021 and has strong links with Chinese companies. In October, ADIO announced that China’s Neta Auto will conduct research and testing of smart car technologies. The initiative was supported by Abu Dhabi’s new Smart and Autonomous Vehicles Industry (SAVI) cluster.
For more economy stories, click here.