Delegates on the 2nd day of Global Financial Markets Forum at Emirates Palace Hotel in Abu Dhabi. Image Credit: Abdul Rahman/Gulf News

Abu Dhabi

China’s outbound direct investment in The Belt and Road Initiative will reach $300 billion by 2030, according to the chief economist of Bank of China.

“The investments will more than double from the current levels and there will be a lot of transactions related to belt and road initiative,” said E Zhihuan, while speaking at the Global Financial Markets Forum in Abu Dhabi on Wednesday.

China is investing heavily in a number of countries as part of the initiative to build roads, railways, ports and oil and gas pipelines.

In the UAE, Chinese companies are involved in the construction of a terminal at Khalifa Port and in the development of oil and gasfields in Abu Dhabi.

China National Petroleum Corporation (CNPC) and CEFC China Energy signed a 40-year concession agreement with Adnoc to develop the emirate’s prized onshore oilfields which will produce roughly about half of Abu Dhabi’s oil production in 2017.

UAE, China also set up a joint strategic investment fund worth $10 billion in late 2015, financed equally by both countries to take up projects under the one belt initiative.

Speaking at the same forum, Keyu Jin, Professor at the London School of Economics, said one of the major challenges facing one belt, one road project is the political relationship with the recipient countries especially China’s relationship with the US.

“Despite these economic projects which the recipient countries need, they are met with a lot of political resistance along the Belt road. It is shared economic benefits that China is really trying to push but unfortunately that has been misunderstood vastly and too frequently.”