Building ties

Q: How much Chinese investment is coming into Abu Dhabi?
 
A: The bilateral trade between the two economies reached US$28.2 billion in 2008, up from US$2.5 billion in 2002. However, it declined in 2009 to US$21.2 billion due to the international slowdown. A recent study by the Dubai Chamber of Commerce and Industry said that trade volumes are expected to regain growth as relations between the UAE and China strengthen.
 
Q: What is the nature of Chinese investment in Abu Dhabi?
 
A: Around 2,500 Chinese enterprises are operating within the UAE in diverse fields, mainly construction, electro-mechanical industries and trade. One of the state-owned enterprises, China State Construction Engineering Corporation Limited (CSCEC), is currently working on 14 construction projects in Dubai, Abu Dhabi and Ras Al Khaimah.
 
Q: What is the nature of GHC’s operations?
 
A: Being the largest industrial conglomerate in the UAE, GHC capitalizes on its wide commercial and technical capabilities to implement the industrial diversification policy of the Abu Dhabi government. GHC follows a well-defined strategy that calls for the four basic elements of creation, development, privatization, and reinvestment in capital and power-intensive industrial projects. We are the industrial leader in the steel sector, in the construction sector and in the downstream aluminum sector. GHC is also a market leader in providing materials to Abu Dhabi’s booming construction industry and we provide poultry, dairy and dates to its Food Security Program.
 
Q: Do you have any partnerships or operations with Chinese firms?
 
A: Building Materials Company, a subsidiary of GHC, concluded a major turnkey agreement in 2006 with China National Building Materials Equipment (CBMEC) to construct a new cement plant with a production capacity of 3.1 million clinkers. We are looking forward to establishing and developing long-term partnerships with leading Chinese enterprises whose core activities lie in the industrial – either basic or high-tech – petrochemical and natural resources sectors. Chinese enterprises with know-how and investment aptitudes are welcome to join hands with us.
 
Q: How is Abu Dhabi distinguishing itself from the other emirates of the UAE such as Dubai?
 
A: Abu Dhabi is the largest and wealthiest emirate of the UAE. Its economy relies heavily on crude-oil production, and this has been the driving force behind the various investment opportunities that regional and international organizations are aggressively pursuing. To reduce its dependence on crude oil, Abu Dhabi’s government is promoting, developing and diversifying investments within the emirate. The government has been actively working on simplifying procedures for investment with "one-stop shops" by setting up several investment zones targeting specific business clusters, creating investment incentives such as a free business environment, and building necessary infrastructure including air and sea links, water, electricity and telecommunications.
 
Q: What investment have you seen from Abu Dhabi into China?
 
A: Borouge and its investment in Beijing comes to mind. Five months ago, Borouge, which is the leading petrochemical producer majority owned by the Abu Dhabi National Oil Company (ADNOC), opened a compounding facility in Shanghai, and is on track to build a second Chinese factory in Guangzhou. The factories will produce compounded plastics for China’s automobile and white goods manufacturing sectors.
 
Q: What are GHC’s plans for the future?
 
A: We will expand our business operations through investments in our core business to increase capacity, as well as to enhance product quality. Moreover, we are considering acquisitions of businesses to compliment our profile, and investments in new industrial projects. To achieve such expansion plans, we are looking to work with international partners including Chinese firms with investment capabilities.