Sharjah seeks his first Yuan loan amid the strengthening of the relationship with China

A government department in the Emirate of Sharjah is close to obtaining the first syndicated loan denominated in History in Chinese Yuan, at a time when entities in the Middle East are increasingly turning to Asian banks to obtain financing. The Department of Finance in the Emirate government is currently working to arrange a syndicated loan in Chinese Yuan, which according to the case of the second offer of Panda bonds worth two billion yuan is by the department, according to people who are familiar with the case. The five -year loan will be earmarked for general institutional purposes and is likely to be signed later this month, the people explained who requested anonymity for the privacy of deliberation. The Sharjah Finance Department did not respond to requests for comment. Countries such as Saudi Arabia and UAE want to strengthen their ties with China and other rapidly growing Asian economies, as part of the efforts to attract more foreign investment and support trade with the largest buyers of their oil exports. You might be interested in: What are sovereign tires and why do the Middle Eastern governments accept it? Diversification of Financing from Asia This proposed financing also reflects a broader tendency among the wave economies to diversify capital resources by turning to Asian lenders. Borrowers benefit from the strong demand of Asian banks to lend to high credit ratings, such as sovereign and semi-sovereign entities, especially at the light of the slow pace of transactions in Asia. Bloomberg-compiled data has shown that lenders in the Middle East have raised approximately $ 5.2 billion since the beginning of 2025 through syndicated loans in the Asia-Pacific region, the highest level in seven years, an increase of 53% compared to the same period last year. The Abu Dhabi Sovereign Holding Fund (ADQ) is also close to securing financing facilities at lenders in the Greater China region. According to the people, the base value of the Sharjah Finance Department’s facility is the $ 250 million equivalent denominated in Chinese Yuan, with the option to increase the loan to the equivalent of an extra $ 150 million. China Construction Bank Asia is the general manager and only coordinator of the agreement, which has a fixed interest rate of 2.6%.