Aabar and CSCEC agree deal for $2bn project
Abu Dhabi based sovereign wealth fund to repay ICBC loan through oil trade revenue
Aabar Investments, the Abu Dhabi based investment firm, has signed a memorandum of cooperation with the China State Construction Engineering Corporation, it was announced on Wednesday.
The agreement covers the first phase of a $2bn real estate project that is being developed by the Abu Dhabi sovereign wealth fund, while funding will be provided by the Industrial and Commercial Bank of China.
Based in Shanghai, the China State Engineering Corporation has will undertake the construction of hotels, office buildings and high-end residential buildings in Abu Dhabi, the company said in a statement to Reuters. Aabar will repay ICBC through the revenue it gets from oil trading, it added.
Earlier this month, Arabtec, the Dubai based construction firm, released a statement to the Dubai Financial Market announcing that it had employed Aabar Investment’s chairman, Khadem Al Qubaisi, as its CEO as well.
This announcement followed the sovereign wealth fund increasing its stake in the construction firm to 10.45% through the purchase by of two of its units. Aabar Petroleum Investments Company bought its stake in Arabtec to 5.32%, while Aabar Real Estate owns 5.13% of the UAE’s biggest builder by market value.
China State Construction Engineering Corporation is ranked as the third largest construction firm in the world and the 20th largest general contractor in terms of overseas sales.
