View of Abu Dhabi's skyline at sunset from Dhow Harbour in the UAE.

China is on the brink of opening an international exchange alongside the United Arab Emirates to cater for its mammoth Belt and Road Initiative.

The Asian giant's Shanghai Stock Exchange agreed a deal in principle with the Abu Dhabi Global Market (ADGM) on Monday. The partners signed a memorandum of understanding (MoU) to develop the platform in Abu Dhabi.

"We are very excited and pleased to enter into this MoU with Shanghai Exchange to establish a Belt and Road Exchange," Richard Teng, chief executive of ADGM's Financial Services Regulatory Authority, told CNBC on Tuesday.

The joint exchange is poised to support businesses and investors along the Belt and Road. This Beijing-backed scheme plans to link the world's second-largest economy to the west via a vast land and maritime infrastructure network across Eurasia.