Abu Dhabi – Mubasher: The Abu Dhabi Global Market (ADGM), the UAE’s international financial centre, has signed a memorandum of understanding (MoU) with China’s Shanghai Stock Exchange (SSE) to launch an exchange focusing on Chinese foreign trade and investment.

The planned exchange will serve companies and investors involved in China’s Belt and Road initiative, according to Reuters.

The Belt and Road Initiative (BRI) is a development strategy proposed by China focuses on connectivity and cooperation among Eurasian countries.

“At ADGM, we have the international platform to serve different kinds of enterprises and investors - global, regional and local - seeking exposure to the Middle East and North Africa and Belt and Road projects,” ADGM Financial Services Regulatory Authority’s CEO Richard Teng commented.

Teng declined to give any further details regarding the new instruments to be traded on the new exchange or the specific date in which it is slated for inauguration, Reuters reported.

"Ultimately, the new exchange will support not only the Belt and Road initiative but also the internationalisation of the Chinese yuan in the region," Teng said.

Trade and investment relations between China and the GCC have been growing rapidly, as China-UAE bilateral trade exceeded $46 billion in 2016, according to Beijing’s official news agency.