China to strengthen GCC economy with $3.4b investment

China plans to invest the US $3.4 billion in two Dubai-based trading facilities, increasing the influence of the world’s second-largest economy in the Gulf region.

The country will invest US $2.4 billion in a 60-million-square-foot (5.6 million square-metre) operation that will be used to store Chinese products for shipping around the world, Dubai ports group DP World said in a statement on Saturday, citing HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“It will include wholesale and retail outlets that help enhance regional and international trade,” according to the statement.

DP World has also signed an agreement with China to create a $1 billion project in Dubai to import, process, pack and export agricultural, marine and animal products.

The UAE has been seeking Chinese investments, and companies from the Asian country invested US $300 million in Abu Dhabi’s industrial zone in 2017.

China Cosco Shipping Corp. agreed in 2016 to spend US $738 million on a new port in Abu Dhabi.