Manama, July 18:

Two Gulf investment institutions said they would pump up to five billion dollars into developing an ‘energy city’ in China, a major importer of oil from the region.

Bahrain-based Gulf Finance House, an Islamic investment bank, and Gulf Energy, an international firm that invests in the energy sector, made the announcement in Beijing, a statement said.

Located in the Yanjiao business district, 30-km from the heart of Beijing, the 13.4-sq-km Energy City China development will be a purpose-built business and residential district for Asia’s leading energy companies, the statement said.

A letter of intent was signed for the project, which will cost up to five billion dollars, and feature an energy databank, a financial service centre and an International Mercantile Exchange.

The statement did not say when the development would be completed, but that it was the third in a series planned by Gulf Finance House and Gulf Energy. The two others, unveiled last year, are in Qatar and India.