Industrial pact with Beijing reaches new highs

Eight years after China and the United Arab Emirates inked an agreement to boost industrial cooperation, economic ties between the two countries have continued to grow with a multitude of partnerships.

One of the successful outcomes of the agreement is the China-UAE Industrial Capacity Cooperation Demonstration Zone, or ICCDZ, located in the Khalifa Industrial Zone in Abu Dhabi, said Xiong Jun, its deputy general manager.

Xiong added that cooperation between the two sides is diversifying as exemplified by the opening of the first Chinese Industrial Products Exhibition hosted by China's Jiangsu Overseas Cooperation and Investment Company, or JOCIC, in March. The event attracted over 500 visitors and bilateral agreements covering research, technology and space were signed.

An agreement for the zone's development was signed in December 2015. Construction of the zone began in May 2018.

Challenging time

Since 2019, the zone has attracted more than 3.2 billion yuan ($505 million) in investments. Despite challenging circumstances during the COVID-19 pandemic, cooperation continued.

Xiong said the ICCDZ has signed four cooperation agreements with other entities, including one with the College of Business and Economics at the United Arab Emirates University, or UAEU. The agreement has strengthened cooperation in business case studies and internship programs, including promoting business conversations and dialogue.

"We actually started the sustainability research about the industry zone, as well as our phase one internship programs," Xiong said.

Other agreements include one with WeRide, an autonomous driving solutions provider, which has vehicles now plying the roads of the UAE's Yas and Saadiyat islands.

In July, WeRide was given the first national license for self-driving vehicles by the UAE government. It is the first in the Middle East, and globally.

Four big projects relating to buildings and infrastructure have been completed in the ICCDZ.

Agreements have been signed for six land lease deals and five manufacturing unit lease projects, including one project that started production last year.

Superview Metals Manufacturing Industry, a UAE-US co-partnership company specializing in welded steel cylinders, was the first to start production in the zone in October.

Tax exemption

Wang Hongyan, factory manager at Superview, said the company expects to produce between 3 million and 5 million steel cylinders of various types this year. The company has more than 20 technicians and research and development teams, as well as 25 management personnel.

"The biggest advantage of our company here is tax exemption. The park is a duty-free zone. There is a port near us — the Port of Abu Dhabi, which is relatively close for the shipment, thus becoming another great strength for us," Wang said.

"Moreover, the grassroots workers in the park offered us a lot of convenience. For example, if we have any (requests), they will respond relatively quickly."

Wang said his firm's products are currently sold in Europe and the United States, and that he expects to gain customers in the UAE market in the near future.

"At present, an important customer has already signed a contract with us. In the future, our business volume in the UAE will be very considerable. Our company should be the first one in the UAE to produce disposable steel cylinders and helium cylinders, so we can say that we have an advantage in this district," he said.

In March, Brothers Gas Bottling & Distribution signed an agreement to offer disposable helium cylinder kits.

For the first time in the Middle East, Brothers Gas and Superview will offer disposable helium cylinder kits to original equipment manufacturers, or OEMs, across the world. The disposable helium cylinders will be manufactured by Superview, and the refilling of helium will be done by Brothers Gas.

Li Jinwu, general manager at Hilong Pipeline Middle East Technology Industry, which specializes in high-end oilfield equipment and integrated oil services for petroleum and natural gas development, told China Daily that the company has met many challenges in its business development in the past decade.

Having a presence in the zone is helping change that. Hilong has invested in a production factory in the ICCDZ, with the facility scheduled for completion in September.

"The business is for pipeline coating because the UAE is one of the biggest oil producers in the world. Also, we can see the UAE is very open and has a very good relationship with China," Li told China Daily.

Li said Hilong has recently won many contracts. The company focuses on the Middle East, North Africa, Europe and Southeast Asia markets, and has built up a good sales and service network around the globe. This helps it serve Chinese oil firms CNPC, Sinopec and CNOOC, as well as global oil and energy companies like Shell, BP, ENI and Schlumberger.

"We target the Gulf countries in the future because we're founded in UAE. Also, we can get good support from the UAE government. I believe we will have a very good and successful business in the future," Li said.

According to Hilong's 2022 annual report on technological innovation, China has entered the fifth year of implementing a seven-year action plan for the oil and gas industry running from 2019 to 2025. It also said the oil and gas industry both domestically and internationally is promising.

Zheng Wanying, Ida Xue and Xu Weiwei in Hong Kong contributed to this story.