China and U.A.E. Signs Agreement in Setting Up A Investment Cooperation Fund
China and the United Arab Emirates have agreed on setting up a major investment cooperation fund that is said to be worth $10 billion that will benefit third parties and both countries themselves. During a meeting Beijing, President Xi Jinping and the Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan were on hand to witness the signing of the memorandum of understanding in establishing the fund. By launching the fund will be playing an important role in deepening the pragmatic, bilateral cooperation.
The director of the Foreign Ministry Department of West Asian and North African Affairs Deng Li, stated that the funds reaching $10 billion will be fully invested in China, the U.A.E. and other third party markets. This is a new type of measure that has a vision of the future in which the program generally eyes energy infrastructure and high end sectors. China and U.A.E. also agreed in boosting visa services and to recognize each others driver licenses.
During the meet, Xi also said that China is ready to hold discussions with U.A.E. in exploring third party cooperation in Africa. A professor of Arab studies in Beijing Foreign Studies University said that even if U.A.E. is just a small country, China would learn a lot on investing and exploring foreign markets through cooperation with U.A.E. due to its financial expertise. Having teamwork with U.A.E. will be of great significant to boost China’s relationship with the Arab community.
The cooperation will also benefit China ties with the economies along the route of the Silk Road Economic Belt and the 21st Century Maritime Silk Road as the U.A.E. is at a pivotal point for both strategies. Meanwhile China’s central bank is extending a currency swap agreement with U.A.E. central bank that is worth 35 billion yuan and will last for three years.