China and the UAE have embarked on a joint investment initiative as the two trading partners set up an investment fund worth $10bn, according to the UAE’s state-run news agency WAM.

The fund, will be financed equally by both countries and it will pursue investment opportunities in different asset classes. The agreement to establish the investment vehicle follows a cooperation deal between state-owned oil companies in both countries and was reached during a three-day visit by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahayan to China.

China National Petroleum Corporation on Sunday signed a strategic cooperation agreement with Abu Dhabi’s Mubadala Petroleum to collaborate on upstream oil and gas investment and related projects outside the UAE.

From the UAE’s side the new investment fund will be managed by Abu Dhabi-controlled Mubadala while a subsidiary of China Development Bank will act on Beijing’s behalf.

The new fund joins others set up by the UAE and Abu Dhabi to invest with different countries, including Russia and France.

Meanwhile, Abu Dhabi’s Masdar said it had agreed to work with parties including China Vanke and China Merchants New Energy Group for projects including real estate development and renewable power generation, according to a separate WAM report.

“The launch of this strategic fund with commercial goals builds on the next phase in our partnership in our quest to work in a close way to develop the economies of the two countries and take part in the growth of the global economy,” Sheikh Mohammed was quoted as saying by the WAM news agency.