Mashreq Strenghtens the UAE's Relationship with China
19 April 2009
Dubai, United Arab Emirates, 19 April 2009 - Mashreq and China Unionpay (CUP) are today celebrating their relationship as they come together to build a new business model of cooperation, uniting the two leading financial institutions and strengthening the economic ties between the People’s Republic of China and the United Arab Emirates.
In a ceremony held at the iconic Burj Al Arab hotel, the leading figures from both Mashreq Bank and China Unionpay come together to cement their new partnership, which sees China Unionpay customers able to use their cards throughout Mashreq’s extensive network in the UAE.
CUP was founded in 2002 and is an association for China's banking card industry. It is also the only interbank network in China, linking the ATMs of all major state banks and 196 member banks. With this partnership, Mashreq now becomes the first national bank in the GCC to recognize and accept China Unionpay cards – for cash withdrawals at ATM machines, and for purchases by Mashreq point of sales terminals. By the end of 2008, 196 CUP domestic member banks had issued more than 1.8-billion cards.
Attending the event was CEO of Mashreq, Abdul Aziz Al Ghurair, the Ambassador of P.R.C in U.A.E Mr. Gao Yusheng, the Consul General of P.R.C in Dubai Mr. Gao Youzhen, and the President of China Unionpay, Xu Luode together with a CUP board delegation, coming from China, along with senior members from the UAE Central Bank and Mashreq. The CUP board delegation members are all senior members from major banks in China including ICBC, BOC, CCB etc.
The number of Chinese tourists either visiting or transiting from the UAE in 2008 was in excess of 1 million and with this new move, Mashreq will give China Unionpay cardholders the freedom to complete financial transactions at all of their merchants across the UAE and the ability to withdraw cash at all Mashreq ATMs. The partnership will not only encourage more tourism trade from China to the UAE, but it will also significantly strengthen the trade and economic relationships between China and the UAE.
CEO of Mashreq, Abdul Aziz Al Ghurair comments: “There are great partnership opportunities between Mashreq and China Unionpay and this is just the first step, in what we hope, will be a very long and prosperous relationship for both the UAE and China. Mashreq currently holds 32% market share in the merchant acquiring business and our vision to provide the most convenient solutions to all of our customers, is testament to our new relationship with China Unionpay.”
“China’s economy is predicted to be the world’s largest by 2012, and President Hu Jintao has stressed that his country sees the UAE as its first trade partner in the Gulf and the Middle East. At Mashreq, we are fully committed to making that vision a reality, and our joint venture with China UnionPay further strengthens the ties that have bound our two countries for so long”. Continued Al Ghurair
In recent years, the economy and trade ties have become increasingly close between China and U.A.E. The U.A.E is the second largest trade partner and the largest export market in Middle East Area with China. 2007 witnessed the bilateral trade volume of over USD 20 billion, with over 3000 Chinese companies registered in U.A.E and in excess of 200,000 Chinese people who living and working in U.A.E.
The president of China Unionpay Mr. Xu Luode comments on the partnership: “The UAE has a strong bilateral trade tie and an ADS (Approved Destination Status) agreement with China, with the relationship between the two countries now representing a rapidly growing trend. The beautiful scenery and excellent shopping environment of UAE is also attracting an increasing number of Chinese tourists, and the launch of CUP card acceptance in U.A.E merchants is a significant milestone for the international business of China Unionpay, meaning that together, we are now able to satisfy the demand of the vast number of Chinese consumers.
“Mashreq is the ideal long term partner for China Unionpay to with its wide acceptance network in UAE and it is in the interest of both parties to launch the business and establish a long term partnership,” concludes Mr Xu Luode.
From his side, Douglas Becket – Head of Retail Banking in Mashreq, said: “We want to give all CUP card holders, tourists and residents, the Mashreq experience of convenient, safe, and cost-effective service they are accustomed to at home. Especially as trade and tourism between our two countries is growing so rapidly. For this, Mashreq will launch in excess of 500 merchants and 200 ATMs exclusively for CUP cardholders covering the key tourist destinations to ensure accessibility and convenience. As the UAE’s leading local bank, the partnership demonstrates our commitment to the UAE coupled with our global reach”.
The ceremony ended with the first official CUP purchase in UAE conducted in Burj Al Arab by Mr. Xu Luode using his personal CUP card through the Mashreq network.
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