The agreements allow local investors 20 per cent stake in Ta’ziz Industrial Chemicals Zone projects and is in line with the UAE’s industrial growth strategy to raise the industrial sector’s contribution in the national GDP to $81 billion by 2031
The Abu Dhabi chemicals industry witnessed its first public private partnership highlighting Abu Dhabi National Oil Company’s (Adnoc) continued commitment to deepening its contributions to local industry and pioneering new, innovative means of collaboration with the UAE’s private sector.
Investment agreements in this regard were signed by the Abu Dhabi Chemicals Derivatives Company (Ta’ziz) with eight UAE-based investors.
The agreements comprise commitments by the investors to invest in an up to 20 per cent stake in a portfolio of chemicals projects worth Dh15 billion ($4 billion) within the Ta’ziz Industrial Chemicals Zone, alongside Adnoc, ADQ, and other global strategic partners in Ruwais, Abu Dhabi.
Commenting on the agreement, Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology (MoIAT) and Adnoc Managing Director and Group CEO, says: "We are delighted to welcome leading UAE-based investors to partner with Adnoc and ADQ to further accelerate the development of Ta’ziz.
"Through Ta’ziz, our new domestic partners will have a stake in ongoing activities to enable additional domestic production of critical industrial raw materials, drive economic diversification and further grow the UAE’s advanced manufacturing base, supporting the ambitions outlined in the ‘Principles of the 50’ set out by our wise leadership.
Meanwhile, Mohamed Hassan Alsuwaidi, the CEO of ADQ, says: "The agreements reflect our aim to strengthen collaboration with the private sector. Sustainable industrial growth ensures that the UAE is well positioned to attract foreign direct investment and grow its leadership across core sectors of the economy where ADQ is active. Through our broad portfolio, we can unlock the investment potential of Ta’ziz on a global scale, while remaining firmly committed to driving value creation and supporting the sustainable development of Abu Dhabi’s economy."
The eight UAE-based investors who have signed agreements with Ta’ziz include Al Dhafra Co-operative Society, Al Nasser Holdings, Alpha Dhabi Partners Holding, Arab Development Establishment, Buhairan, Capital Investment, Mazrui International and Mazrui Energy Services, and Riverside Investments.
The development of the Ta’ziz industrial hub is expected to benefit from Adnoc and ADQ’s world-class infrastructure and high-quality feedstock, as well as the support of MoIAT.
Adnoc’s operations are a critical engine for industrial growth in the UAE, with competitive feedstocks available to catalyse the growth of industries and manufacturing supply chains.
Similarly, ADQ is advancing economic clusters around essential sectors, ensuring they are part of global value chains, facilitating growth and a broad portfolio of major enterprises that spans key sectors of a diversified economy, as well as enabling private sector investment in the UAE’s economy.
The Ta’ziz Industrial Chemicals Zone has received significant interest from leading international and local investors.
Partnership agreements have already been signed with Fertiglobe, a JV between Adnoc and OCI, Mitsui and GS Energy regarding a proposed blue ammonia production facility; and with Reliance Industries, regarding a proposed JV for the development of an ethylene dichloride (EDC), chlor-alkali (CA), polyvinyl chloride (PVC) production facility.
The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.