Mubasher: A total of 11 new partnership agreements in diverse industries in both the public and private sectors, were signed on Saturday at Dubai Week in China in Shanghai, according to a press release.
Ties between the two cities were strengthened further by the announcement that the Dubai Chamber of Commerce and Industry, a non-profit public entity with 2829 Chinese firms among its membership, is opening a Shanghai office to identify mutual trade opportunities and explore investment prospects for Chinese companies ahead of Expo 2020 Dubai.
“With its world-class logistics infrastructure, Dubai is an ideal hub for Chinese companies looking to expand their global footprint,” said Hisham Al Shirawi, Vice Chairman, Dubai Chamber. “There is incredible investment and trade potential in key growth sectors yet to be explored. We are confident our first representative office in China will help take bilateral relations to the next level.”
Jebel Ali Free Zone (Jafza) and Dubai Multi Commodities Centre (DMCC) were among the official partners to use the event as a platform to build new business alliances. With 250 Chinese companies based at Jafza and 150 at DMCC, free zones is an area of growing collaboration, with Chinese firms in Dubai benefiting from advantages such as no customs duties on imports and re-exports, 100% repatriation of capital and profits and no corporate or income taxes.
Highlighting the increasing contribution of Dubai to the Belt and Road Initiative, Jafza signed a Memorandum of Understanding (MoU) with China Chamber of International Commerce to increase investment cooperation, while DMCC entered three new partnerships.
Dubai Gold and Commodities Exchange has obtained a license from Shanghai Gold Exchange to list Shanghai Gold Futures and signed an agreement with Agricultural Bank of China for it to become the first market maker, while DMCC also signed an agreement with Mega Capital for the export of what could bring up to 130,000 tonnes of coffee beans from Yunnan State Farms Group to Dubai.
“China is Jafza’sleading partner, with trade values of $12.6bn in 2015,” said Ibrahim Al Janahi, Deputy CEO and COO, Jafza. “Rapid growth in the region provides greater opportunities for Chinese businesses and we aim to attract more Chinese multinationals and help them capitalise on the continuously growing opportunities in the region.”
“China is Dubai’s number one trading partner and the relationships that we have cemented this week will further underpin the role that DMCC is playing in boosting commodities trade connecting directly with China’s Belt and Road Initiative,” said Gautam Sashittal, CEO of DMCC.
