Bahrain-based Gulf Finance House and Gulf Energy have announced plans to set up a $5 billion energy city in China.

The project is the single largest direct investment in China by a Middle East consortium, and first by Gulf Finance House and Gulf Energy.

Energy City China will be a purpose-built business and residential district for Asia’s leading energy companies.

Marking its strategic first investment in the world’s fastest growing economy, Gulf Finance House, in association with Gulf Energy, signed a Letter of Intent with the Management Committee of Yanjiao Economic & Technology Development Area, Sanhe City, (close to Beijing City) establishing a partnership to drive forward the ground breaking project.

The commemorative ceremony was held at the monumental Great Hall of the People in Beijing, the parliament building for legislative and ceremonial activities held by the Chinese government.

This hall has witnessed the signing of numerous significant agreements between international institutions and companies such as Microsoft, Airbus, Boeing and others.  

The Letter of Intent was signed by Zhang Jinbo, Mayor of Sanhe City, and Esam Janahi, chief executive officer and board member of Gulf Finance House, in the presence of Arab ambassadors and Asian businessmen from the finance and energy sector.

Located in the Yanjiao business district, 30 km from the heart of Beijing, the 13.4 square kilometres Energy City China development will house a purpose-built, integrated business center constructed specifically to meet the needs of local and international energy companies.

In addition, Energy City China’s Residential Zone will include villas, houses and apartments, shopping malls, first class healthcare and leisure facilities, library, cultural and exhibition centers.  

“Today’s agreement represents an important milestone in Sino-Arab trade relations and is an historic achievement for Gulf Finance House. China is widely recognized as a political and economic superpower and a key energy market.

“For the first time ever, China’s energy industry will boast its own business and residential hub, designed specifically for oil and gas companies,” said Janahi.

Both parties agree Energy City China is likely to trigger further Arab investment in China.

“To date Gulf investments in China have remained relatively low, in spite of China having invested over $7 billion in the Gulf. China’s oil requirements will rise to 7.3 million oil barrels per day by 2020, a key factor in Gulf Finance House’s decision to create Energy City China,” said Janahi.

“With more than 50 per cent of that oil supply expected to come from the Middle East, China is an attractive commercial opportunity for Middle East energy companies.”

The Letter of Intent marks a major step forward for a project that will make a significant contribution to the energy market within China.

Highlighting the timeliness of the Energy City China agreement, Zhang Jinbo, mayor of Senhe City, said:

“Over the years China’s energy industries have matured significantly. With the country's energy demands expected to triple in the next 20 years, we welcome this initiative by Gulf Finance House.

“Energy City China will share the prosperity in the growth of the energy sector in China and provide the appropriate business infrastructure for the Chinese energy sector; enhancing our energy trading links with the Middle East’s oil and gas producing countries and key Asian energy markets.

“Energy City China is a shining example of the growth in foreign investments in our country and China’s immense potential in this sector.”
 
“China has always had healthy trade relations with the Middle East.

“Today we are proud that one of the region’s leading banks, Gulf Finance House, has taken the initiative to develop a<