Industry: Industry Region: United Arab Emirates (Dubai) Transaction Price: $1 million Transaction method: Equity investment
Overview of the park
The China UAE (Dubai) Food Industrial Park is scheduled to start construction at the end of 2018, and after completion, it will be a landmark China-Arab production capacity cooperation project of the "Belt and Road" and a non-oil economic industrialization cooperation project.
Development overview
Location advantages. The industrial park is located in the "Dubai Wholesale City" in the emirate of Dubai, United Arab Emirates, close to the entrance of Dubai Maktoum Airport, 3 kilometers away from Dubai Expo 2020, and adjacent to the Jeb Ali Free Trade Zone across the highway.
Operating model. Ningxia State-owned Assets, together with central enterprises and the Emirate of Dubai, jointly launched a market-oriented equity fund to integrate the advantageous production capacity of the domestic food industry and invest in the construction of the China-Arab Food Industrial Park in Dubai. The industrial park adopts an innovative fund model to initiate construction, and after completion, the entire factory will be leased to a food production enterprise funded by equipment. The fund company is responsible for the relocation of food enterprise equipment, the construction of industrial park plants, and the working capital of the bottom floor; The food production enterprise is responsible for the project operation, and the fund and the enterprises entering the park jointly confirm the business objectives to ensure that the invested production capacity can achieve the agreed gross profit target. The source of income of food enterprises in the park is divided into two parts, one is that the food enterprises in the park participate in the income distribution of the fund itself as partners; The second is the operating income of food enterprises entering the park. Except for the necessary expenses such as rent paid to the industrial park management company, all other income of the food enterprise belongs to itself, and the industrial park management company and the fund do not participate in the profit distribution of the food enterprise. At the end of the fund, food companies can choose to buy back the factory or renew the contract to continue operating.
Infrastructure. Dubai Wholesale City, where the park is located, has complete infrastructure such as park roads, water and electricity pipe networks, energy distribution stations, etc., and will build central energy stations, central cold stations, centralized distributed cold storage, office and exhibition centers, central sewage treatment plants, roads in the park and other facilities to meet the needs of enterprises entering the park. The built plant is jointly designed by the enterprise and the construction party to meet the production needs of different types of food.
Park planning. The planned area covers an area of 400,000 square meters, with a construction area of 300,000 square meters and a total investment of 2.7 billion yuan, of which Ningxia State-owned Assets, Dubai Meraas Holding Company, China Railway Fourth Bureau Group Co., Ltd., Beijing Gas Energy Group Co., Ltd., Industrial and Commercial Bank of China contributed 1.5 billion yuan in cash, and food enterprises (from 30 Chinese food enterprises) contributed 1.2 billion yuan in equipment and technology.
After completion, the industrial park will become the main supplier of meals and airline meals at the world's largest airport, the main supplier of tourist fast food and hotel meals for the world's largest theme park, and an important supplier of humanitarian relief food in the Middle East.