The Abu Dhabi Investment Office (ADIO) has unveiled a partnership with Hong Kong-based ARTE Capital, reiterating the capital’s commitment to becoming a global financial hub. This strategic collaboration is geared towards the establishment of ARTE Capital Middle East in Abu Dhabi, signifying a watershed moment in the bolstering of economic relations between the United Arab Emirates (UAE) and China.
Under the agreement, ARTE Capital Middle East will be headquartered at Abu Dhabi Global Market (ADGM), regulated by the Financial Services Regulatory Authority (FSRA) to manage assets, investment funds, arrange deals, and provide advisory services. This strategic alliance sets the stage for the launch of the ARTE China-Arab Strategic Fund, a monumental $1 billion initiative focused on supporting Chinese companies seeking expansion opportunities in the Middle East.
The fund, to be managed by ARTE Capital in ADGM and backed by the support of ARTE Capital Group’s investors, signifies a major step forward in facilitating Chinese businesses’ entry into the dynamic Middle Eastern market. The collaboration comes at a time when UAE-China economic ties are flourishing, with non-oil bilateral trade witnessing an impressive 18 percent growth in 2022, reaching a staggering $72 billion.
Badr Al-Olama, Director General of ADIO, highlighted Abu Dhabi’s role as a gateway for Chinese companies seeking new frontiers in the region. He stated, “As UAE-China economic ties continue to strengthen, a wealth of new expansion opportunities for Chinese companies will unfold. ADIO’s collaboration with ARTE Capital will facilitate and accelerate this growth and enable more Chinese companies to thrive in Abu Dhabi and the MENA region.”
ARTE Capital, a Hong Kong-based multi-strategy asset manager operating under the Hong Kong Securities and Futures Commission (HK SFC), recently led a delegation of 10 Chinese multibillion-dollar companies to Abu Dhabi. The delegation explored expansion opportunities in various sectors, including education, manufacturing, biotech, gaming, and AI, showcasing the diverse range of possibilities in the Emirate.
Ethan Chan, Chairman of ARTE Capital Group, expressed the significance of the collaboration, stating, “Both the FSRA license and the MOU with ADIO are significant milestones for ARTE. ADGM has positioned itself well as an international financial hub for the Middle East region, and we look forward to working with Abu Dhabi Global Markets, ADIO, and the sovereign wealth funds that have supported our platform over the years.”
ADIO, which established an office in Beijing in 2021, has maintained strong ties with Chinese companies. In October, ADIO announced a partnership with China’s Neta Auto, Hozon Auto’s electric vehicle (EV) brand, for research and testing of smart car technologies within Abu Dhabi’s new Smart and Autonomous Vehicles Industry (SAVI) cluster.
The strategic collaboration between ADIO and ARTE Capital not only positions Abu Dhabi as a preferred destination for Chinese companies but also signifies a dynamic shift in the global financial landscape, opening new avenues for investment and growth.
