Abu Dhabi wants join China's Belt and Road Initiative
CGTN's Nawied Jabarkhyl
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02:34
Abu Dhabi, the capital of the United Arab Emirates, is looking to launch a new exchange to fund Belt and Road initiative (BRI) projects. It’s teamed up with the Shanghai Stock Exchange to work on the move.
Abu Dhabi’s willingness to cooperate with China was mainly thanks to the potential interests of the BRI. In the long term, China’s plan for a modern Silk Road is estimated to be worth trillions of dollars, and the state of Abu Dhabi is hoping to cash in on the plans by building a new trading exchange to finance its projects.
Richard Teng, Chief Executive Officer of Financial Services Regulatory Authority at the Abu Dhabi Global Market, said that investors from all over the world are seeking opportunities to partake in the exciting BRI.
“For all the issuers looking to tap, wishing to tap all these opportunities, they need to raise funds on an equity platform, on a debt platform, in any market infrastructure,” he added.
Fortunately, they do have a chance. The Asian Development Bank says 26 trillion US dollars of infrastructure investment will be needed in Asia by 2030. The problem is whether Middle Eastern markets can handle the vast amounts of capital.
Abu Dhabi, UAE /VCG Photo

Abu Dhabi, UAE /VCG Photo

“If you look at the activity, the trading volumes and the number of listed companies, I think there’s an under-scaled market [in the Middle East]. So, when the market hasn’t grown that big, obviously you cannot attract more capital, more investors, more institutions, more companies,” said Cong Hongbin, senior Adviser at China Silkroad Investment Company, indicating that Abu Dhabi may need more time to deal with the money issues.  
One of the biggest problems the city faces in attracting international companies is that many choose to base themselves in neighboring areas. However, as the seat of government in the UAE, officials hope the strategic importance of Abu Dhabi could become an advantage in helping drive interest in a BRI platform and then boost its local economy in turn. 
Abu Dhabi remains confident of winning new business, thanks to Beijing’s increasing appetite for regional trade. That came even as an estimated 4,500 companies from China are now registered in the UAE, with its major banks particularly active in Dubai. 
Teng said that many Chinese stakeholders have expressed interest in coming to Abu Dhabi because they recognized dynamics and opportunities in the region. “They think that this is the best hub for them to be in,” he concluded.