Marubeni Corp. said Monday it has agreed with Abu Dhabi, one of the seven United Arab Emirates, to set up a joint venture to conduct a feasibility study on a plan to form a comprehensive Japanese-style trading house in Abu Dhabi.
Under the deal with Abu Dhabi's Department of Planning and Economy, Marubeni will arrange for the venture to carry out feasibility studies on plans to export and import cement, process and sell steel products, introduce environmentally friendly technologies, handle Middle Eastern-tapped petroleum products and expedite e-commerce for used cars, it said.
Abu Dhabi seeks to introduce the business model for Japanese trading houses, whose business sectors span a range of industries, in order to limit its economy's heavy dependence on sales of energy-related natural resources, it said.
If the studies conclude a trading house can be run profitably from Abu Dhabi, the two parties will establish a full-fledged venture, Abu Dhabi Trading House.
The trading house, to be capitalized at $15 million, would be owned 40 percent by Marubeni and 60 percent by the Abu Dhabi side, it said.
It would tap the markets in the six other emirates.