China’s $300 million investment in Abu Dhabi Ports is a ‘milestone’

Gabriela Maj | Bloomberg | Getty Images

Cranes stand on the quayside at Khalifa Port on April 26, 2012.

Five Chinese companies have agreed to spend a total of $300 million in a deal with Abu Dhabi Ports, deemed a “milestone” by CEO Mohamed Juma Al Shamisi.

The companies hail from China’s eastern Jiangsu province and will boost industries such as pharmaceuticals, electronics and aluminium smelting, Al Shamisi told CNBC’s Street Signs Monday.

In a deal struck through the Jiangsu Provincial Overseas Cooperation and Investment Company, the companies have signed a lease on 2.2 square kilometers of the Free Trade Zone of Khalifa Port, which the United Arab Emirates (UAE) firm Abu Dhabi Ports oversees.

“The Chinese companies established within the free zone will sub-lease to five factories to start with,” Al Shamisi explained.

According to Reuters, the Chinese firms involved in the deal are Hanergy Thin Film Power Group, Jiangsu Fantai Mining Development (Group) Co Ltd, Xuzhou Jianghe Wood Co, Jiangsu Jinzi Environmental Technology Co and Guangzheng Group.