Top Bahrain firms sign major China deals
Manama, September 26, 2013
Kuwait Finance House - Bahrain (KFHB) and Diyar Al Muharraq, the biggest private urban development project in the kingdom, have announced the signing of agreements with a number of major Chinese companies.
The agreements were signed during His Majesty King Hamad's visit to the Asian country, reported the Gulf Daily News, our sister publication.
Senior officials from the two companies were a part of the high-powered business delegation that went with the King.
"The visit has opened up the potential for new economic opportunities for Bahraini companies that will help them grow further and contribute to sustainable economic development," said KFH-Bahrain managing director and chief executive Abdulhakeem Alkhayyat, who's also chairman of Diyar Al Muharraq.
"It has also created connections between the private sectors of the two countries which will hopefully be transformed into new joint ventures."
Menatelecom, an investment subsidiary of KFHB, is exploring new prospects and opportunities to extend the scope of its strategic partnership with Chinese firm Huawei.
Alkhayyat and KFHB head of project development Osama Al Khaja met senior executives from Huawei during the Chinese-Bahraini Business Forum.
"The purpose of the meeting was to discover opportunities which will enhance Menatelecom's position as a major provider of high-speed communications services to businesses and individuals in Bahrain," the bank's chief executive said.
Diyar Al Muharraq, the biggest private urban development project in the kingdom, has signed a memorandum of understanding with China Middle East Investment and Trade Promotion Centre (Chinamex) for the development of supporting projects for the Dragon City.
The MoU was signed by Mr Alkhayyat and Chinamex chairman Hao Feng, in the presence of Diyar Al Muharraq chief executive Dr Maher Al Shaer and Chinamex general manager Zhen Shou.
"This big commercial project will consist of a large number of markets and shops over a wide area of up to 120,000 sq m and will require the development of various supporting projects," Alkhayyat said.
"Diyar Al Muharraq is attracting foreign investments from various countries and our aim is to maintain the integrity and harmony of these investments with each other".
In May last year, Diyar Al Muharraq signed an agreement with Chinamex to establish and operate the first Chinese city development in Bahrain.
Marketed and managed by Chinamex, the project will be a large-scale trade platform with functions of product exhibition, retail and wholesale, with Chinese architectural and cultural aspects.
The proposed Dragon City is envisaged as a Chinese themed retail shopping mall with a total leasable area of approximately 46,000 sq m.
A separate agreement has been signed between Diyar Al Muharaq and Chinese integrated logistics firm Sinotrans, pertaining to logistics services at Dragon City and other investment opportunities
Under the agreement, Sinotrans will provide a tender proposal on managing Dragon City logistics services.
According to Alkhayyat, as Dragon City developed into a major commercial market trading in large volumes of imported goods, it would need effective goods transportation to ensure the smooth flow of business.
Firm in building materials pact
AKFA Enterprises - a subsidiary of Bahrain-based Bader Group of Companies - has signed a Memorandum of Understanding (MoU) with China National Building Materials.
The agreement opens doors of co-operation between the two countries and the possibility of gaining experiences from China and determining their suitability in the Bahraini market.
The MoU will aid in learning innovative means of adapting and utilising new building materials that will contribute to reducing construction costs significantly.
The deal with the Chinese giant, that has branches in more than 160 countries, underlines the export of waterproofing and insulation solutions from Bahrain across Chinese markets.
It also includes the import of high-quality construction materials from the Chinese market along with obtaining experiences in green energy as well as the import of raw materials for infrastructure projects and the prospect of entering into partnership tenders in special government projects.
"We commend the brilliant initiative of our leadership in opening new horizons of economic relations with China, which is the second largest economy in the world after the US," said Bader Group chief executive and chairman Fareed Bader. – TradeArabia News Service
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