Abu Dhabi is looking to launch a new exchange to fund the Belt and Road Initiative. Abu Dhabi has teamed up with the Shanghai Stock Exchange to work on the move, which could become a key part of China's global trade plans. Nawied Jabarkhyl reports.

In the long term, China's plan for a modern Silk Road could be worth trillions of dollars. Dubbed the Belt and Road Initiative, the government-backed drive aims to build trade links from China to Europe. Here in the Middle East, 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, CEO FINANCIAL SERVICES REGULATORY AUTHORITY, ADGM "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. And, there are global investors looking to partake in that exciting space [Belt and Road] in terms of opportunities."

The Asian Development Bank says $26 trillion of infrastructure investment will be needed in Asia by 2030. Although no firm date has been given for the launch of the exchange, there are concerns about whether Middle Eastern markets can handle the vast amounts of capital.

CONG HONGBIN, SNR. ADVISER CHINA ESILKROAD INVESTMENT COMPANY "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 to that big, obviously you cannot attract more capital, more investors, more institutions, more companies."

As the seat of government in the UAE, officials hope the strategic importance of Abu Dhabi will help drive interest in a Belt and Road platform. If it does, it could also provide a much-needed boost to its own financial ambitions.

NAWIED JABARKHYL ABU DHABI "Abu Dhabi has spent hundreds of millions of dollars building this lavish financial centre. We're here on a weekday afternoon and, as you can see, for a central business district, it's rather quiet. One of the biggest problems the city faces in attracting international companies here is that many choose to base themselves in neighbouring Dubai, like most of the Chinese firms in the UAE have also done."

An estimated 4,500 companies from China are now registered in the UAE, with its major banks particularly active in Dubai. But Abu Dhabi remains confident of winning new business, thanks to Beijing's increasing appetite for regional trade.

RICHARD TENG, CEO FINANCIAL SERVICES REGULATORY AUTHORITY, ADGM "Together with the many Chinese stakeholders that we are talking to, they have expressed interest to come our way. When they study the region, when they study the dynamics, the opportunities, they think that this is the best hub for them to be in."

As China ploughs ahead with its Belt and Road scheme, this part of the world could be central to its success. The UAE sells itself as a gateway to the Middle East, Africa and South Asia. And its biggest city is hoping this latest exchange will make it a more important player in the new Silk Road that's rapidly taking shape. Nawied Jabarkhyl, CGTN, Abu Dhabi.