In one of the latest initiatives, Khalifa Industrial Zone Abu Dhabi (Kizad), an Abu Dhabi Ports subsidiary, has waived the charges for over 75 per cent of its services, in line with the Abu Dhabi Government directive to encourage further investment into the emirate.

Three quarters of services at Kizad will be offered free of charge, while fees for a significant number of the remaining services will also be reduced and streamlined to a simpler tariff structure. The initiative is expected to contribute to savings for the investors while furthering the competitive business advantage at Kizad for its current and future clients.

Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said: “We continue to support the government initiatives to build an investor-friendly environment by providing our partners and customers with the incentives they need for their businesses to thrive and grow. We are committed to Abu Dhabi’s drive to become a global gateway for businesses from all parts of the world.

“The cost of setting up and maintaining a successful business at Kizad is more achievable now than ever before. It is an ideal opportunity for companies of all sizes to benefit from such incentives for either growing their business or entering new markets.”

Khalid Al Marzooqi, director – commercial, Kizad, and Jayadev signing the MOU

The exemptions are aligned with Ghadan 21, the three-year, Dh50 billion ($13.6 billion) Development Accelerator Programme for the emirate, which is anchored around four main pillars: Social, Economic, Liveability and Knowledge.

The decision to waive fees also builds on the incredible success that Abu Dhabi Ports has had in attracting investors to Kizad since it was launched in 2010. To date, the zone has attracted more than 500 investors and more than Dh65 billion in investment across multiple sectors, including metals, polymers, oil and gas, automotive, food, energy and logistics.

The new fee structure will be applicable from this month onwards, a Kizad statement said.

KIZAD,  AIPMA SIGN DEAL

In another major move, Kizad signed a strategic agreement with All India Plastics Manufacturers’ Association (Aipma) to support Indian polymer investors in expanding their geographic and economic reach through Kizad.

The move also highlights Kizad Polymers Park as a tailor-made manufacturing and distribution location for the industry.

The agreement, signed last month in Delhi, underscored Kizad Polymers Park’s access to raw materials from regional producers and connectivity through Kizad’s major transport links, which include Abu Dhabi Ports’ flagship deep-water port, Khalifa Port as well as international airports.

Captain Al Shamisi said: “We look forward to hosting Indian businesses at Kizad and supporting the location, position and business ecosystem.”

“Our aim is to provide investors from all over the world an enabling environment to do business and a platform for growth that is unparalleled in the Gulf and the Middle East region. Through this agreement we will be increasing our contributions to the economy of Abu Dhabi and the UAE as a whole, and at the same time help further the UAE’s relationship with India, a long-standing economic partner of our country,” he added.

Abu Dhabi’s industrialisation is taking wings

Samir Chaturvedi, CEO, Kizad, said: “This agreement is an excellent step towards supporting the growth of India’s massive plastics and polymers businesses. Kizad Polymers Park has been specifically designed to enable this sector to be cost-effective and time-efficient in an ideal strategic location which has the perfect logistics for companies to expand or enter into foreign markets.”

Meela Jayadev, president of Aipma, said: “India has an enormous plastic and polymers manufacturing industry and the UAE is one of our top five import markets.”

“The MoU with Kizad and the potential to work with them to increase our mutual opportunities in new markets is an excellent strategic move on both our parts,” Jayadev added.

Kizad Polymers Park caters to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-finished products; end-use customers, such as household goods, agriculture and hygiene products; material science, including compounded and composite materials, and 3D Printing.

Currently 19 polymers companies are based at Kizad, including Gulf Compound Blending, Cosmoplast, Interplast, Industrium, Songwon Polysys and Schmidt Middle East.

These companies are already leveraging Kizad’s interconnected business facilities as well as smart technology platforms such as Maqta Gateway, Abu Dhabi Ports’ online community business platform. 

CHINESE $10BN PROJECT

Chinese manufacturing giant East Hope Group is working with Kizad on the feasibility of setting up a development worth more than $10 billion at the industrial hub.

The agreement was signed by Chaturvedi and Meng Changjun, president of Investments, East Hope Group, in the presence of Rashed Matar Alsiri Alqemzi, consul general, UAE Consulate General in Shanghai and Yongxing Liu, chairman of East Hope Group.

Under this agreement, the two entities will look into the possible 15-year, three-phase plan to develop 7.6 sq km of land at Kizad.

In phase one of the proposed project, East Hope would develop an alumina facility, while the second phase would include a red mud research centre and recycling project. The final phase of the project would see large-scale upstream and downstream non-ferrous metal processing facilities, said a statement.

As part of the agreement, Kizad, Abu Dhabi’s first integrated trade, logistics, industrial and free zone and a subsidiary of Abu Dhabi Ports, would support East Hope Group across all areas as it investigates setting up in Abu Dhabi, including ensuring the best utility prices, acquiring the land, creating a masterplan and handling the import of raw materials through Khalifa Port, and storage.

The agreement also includes exploring options for the sustainable generation of energy and a programme to preserve the environment, including the research centre.

East Hope Group, which is headquartered in Shanghai, is the latest Chinese firm to realise the potential of Abu Dhabi as a Middle Eastern hub and a gateway to the region, Africa and Europe, the statement said.

Earlier this year, Roadbot broke ground at Kizad on a new tyre manufacturing plant, which is located in the 2.2-sq km China-UAE Industrial Capacity Cooperation Demonstration Zone.

Chaturvedi said: “The powerful combination of Abu Dhabi’s strategic location, Kizad’s logistic efficiencies and the connectivity offered by Khalifa Port, the flagship port of Abu Dhabi Ports and one of the region’s biggest maritime hubs, continues to be a powerful magnet for Chinese investments in Abu Dhabi.

“We are delighted that a company of the size and stature of East Hope Group has recognised the unique value proposition of Kizad and shown interest in joining our thriving and expanding industrial and trade community in Abu Dhabi.”

Liu said: “I am looking forward to integrating our advanced production capacity in the heavy industry with the UAE’s advantages, setting up the strictest environmental standards to establish this new project, facilitating the UAE’s sustainability ambitions. This project will become the benchmarking project along the Belt and Road Initiative between the UAE and China.”

The East Hope Group produces aluminium and related products, as well as animal feed. The company was founded in 1982 and already has plants in Vietnam, Indonesia and Singapore.

As well as the ground-breaking by Roadbot in February, the longstanding economic relationship between China and UAE was also strengthened last year with the official inauguration of the Cosco Shipping and Ports’ Abu Dhabi terminal at Khalifa Port; positioning Abu Dhabi as the regional hub for Cosco’s global network of 36 ports. These initiatives reiterate the strategic role played by the emirate to the major trade hubs along the Belt and Road Initiative.

Meanwhile, the China-UAE Industrial Capacity Cooperation Demonstration Zone, which was established in conjunction with Jiangsu Overseas Cooperation Investment Co Ltd. (JOCIC), has already attracted the interest of 19 Chinese firms since it was set up last year.