A new joint venture company between International Equine Group (IEG), formed between Dubai's Meydan and Malaysia-based Teo A Khing Design Consultants (TAK), and Tianjin State Farms Agribusiness Group Company, an entity owned by the Chinese government, was officially launched on Wednesday.
The new JV called Hua Zhi Jie Horse Industries will be based in Tianjin and spearhead the development and management of the new Tianjin Equine Culture City.
The announcement concluded a two-year due diligence exercise undertaken by both parties with the objective of positioning Hua Zhi Jie as pioneering the development of an integrated equine industry in China.
As a 'new economy' company, Hua Zhi Jie will incorporate the promotion of green technology and encourage positive cultural and social developments for the equine industry in the world's most populous nation.
The potential for growth for this industry in China is enormous if one takes into consideration the direct economic impact that the equine industry has had on the national economies of the US, UK and Australia, with estimates of $39 billion, $8bn and $6bn, respectively.
Hua Zhi Jie will develop the Tianjin Equine Culture City, measuring over 5,000 mu of land (3.33 million sq m), which will feature world-class race tracks, training tracks, stables and other equine facilities.
The Tianjin racing calendar will coincide with the international racing calendar and once official approval is given, a formal announcement will be subsequently made. It is envisioned that an international flat racing event not dissimilar to the scale of the Dubai World Cup may be staged as early as 2012.
Saeed Humaid Al Tayer, Chairman and CEO of Meydan, said: "Meydan's success since its launch and its continued growth potential makes it an excellent model to replicate in a burgeoning economy such as China's. It is a significant partnership and we are very bullish about the growth prospects presented there. We hope to lend our expertise and extensive experience in positioning horse racing, so that it not only promotes the sport, but supports its related industries and provides viable economic returns to the people of China. At the same time allowing horse racing to be seen as a prestigious sport, and a symbol for luxury, lifestyle and culture."
The parties involved in the signing ceremony included Bai Zhisheng from Tianjin State Farms Agribusiness Group Company, Saeed Humaid Al Tayer, Chairman and CEO of Meydan, Teo Ah Khing, Chairman of Teo A Khing Design Consultants.
Zhang Gaoli, Member of the Political Bureau of the CPC Central Committee and Secretary of the CPC Tianjin Municipal Community, witnessed the ceremony.
