Mubadala, the Abu Dhabi investment company, said it has signed an initial agreement with HNA Group, a Chinese company that focuses on tourism, logistics and financial services, to explore increased investment cooperation.

The agreement grew out of Mubadala’s sale earlier this year of a majority stake in SR Technics, a maintenance, repair and overhaul company for the civil aviation sector, to HNA Group.

Mubadala retains a 20 per cent stake in SR Technics and both companies are working closely as shareholders in SR Technics.

The memorandum will involve both companies identifying, evaluating and seeking to carry out investments in areas including aerospace, advanced manufacturing, real estate, hospitality and financial services. It also comes amid a deepening relationship between China and the UAE.

No other specific details were given about the tie-up, such as how much they plan to invest.

"We are delighted to expand our relationship with HNA Group through this memorandum of understanding," said Homaid Al Shimmari, the chief executive of aerospace and engineering services at Mubadala.

"This agreement will create opportunities to build on the deep-rooted relationship between the UAE and China, and a diverse range of co-investment activities between our two nations."

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, made a three-day visit to China in December last year.

During that trip, Mubadala said it would launch a joint fund worth US$10 billion with two Chinese state institutions to invest in sectors with strategic importance for the UAE and China.

Since then, Chinese companies have been increasingly eyeing Abu Dhabi to set up businesses. A conference in September to promote business between China and Abu Dhabi was attended by more than 200 people.

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