The Abu Dhabi National Oil Company (ADNOC) and ADQ – one of the region’s largest holding companies with a broad portfolio of major enterprises – have established a joint venture named “TA’ZIZ”, which will drive the development of industrial projects within the planned Ruwais Derivatives Park.
Potential investment projects selected for Phase 1 will amount to more than $5bn (AED18bn) at the Ruwais Derivatives Park.
An industrial ecosystem will be constructed by ADNOC and ADQ, including a new port, utilities, infrastructure, feedstock supply, and shared services at a total cost of more than $2bn (AED7bn).
These facilities will be made available to new investors under a “plug and play” concept, which means that projects could be plugged into the existing park infrastructure, lowering the cost of investment.
A park management company will be created to ensure ease of doing business and to help facilitate contact with relevant service providers and government agencies for investors.
Contracts have been awarded for the first stages of development for the park site, and work is already underway, including geotechnical and topographical surveys; a marine bathymetric survey; and health, safety, and environment impact assessments.
Once completed in late 2020, these surveys will enable civil engineering works to prepare the park site for construction and dredging for an entirely new port facility. Several design and engineering contracts will be awarded early 2021 for the design of the chemical plants as well as the required ecosystem.
In addition, following a detailed feasibility study, TA’ZIZ will explore potential projects to manufacture a number of chemicals at a global scale, with opportunities for additional investors and partners to participate. Total investment in these projects could be in excess of $3bn (AED11bn), with most of the chemicals produced in the UAE for the first time.
The name TA’ZIZ – which in Arabic means advancement, strengthening, or creating a foundation – describes the ambition of ADNOC and ADQ as they kickstart the development of industrial growth in Ruwais.
With ADNOC and ADQ working together to drive the next phase of technology-driven industrial growth in Abu Dhabi, both companies have also announced leadership appointments to the joint venture.
The UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, HE Dr Sultan Ahmed Al Jaber, said: “TA’ZIZ combines the strengths of ADNOC and ADQ to create a unique platform that will act as a key driver and catalyst for the UAE’s industrial development and economic diversification. Our new partnership will strengthen our position as a globally competitive chemicals hub and destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base.”
The CEO of ADQ, HE Mohamed Hassan Al Suwaidi, said: “The creation of TA’ZIZ embodies the strategy and aspirations of both joint venture partners, not only in contributing to and diversifying the key industrial component of the UAE’s future economy, but also in forging local collaborations needed to achieve such important developmental milestones.
“With companies such as Abu Dhabi Ports, Abu Dhabi National Energy Company (TAQA), Etihad Rail, Emirates Steel, DUCAB and Arkan, ADQ has much to bring to this joint venture, and we will fulfil the trust invested in us to ensure the success of TA’ZIZ.”
The chairman of the TA’ZIZ Board of Directors is Khaled Salmeen (ADNOC), with Ahmed Jasim Al Zaabi (ADNOC), Omar Suwaina Al Suwaidi (ADNOC), Nabeel Qadir (ADQ), and Hamad Al Hammadi (ADQ) being appointed as board members. Khaleefa Yousef Al Mheiri (ADNOC) has been appointed as acting chief executive officer.
The Ruwais Derivatives Park site is adjacent to the Ruwais Industrial Complex and enjoys a favourable location at the crossroads of east-west trade flows and routes to the UAE’s target markets, with a third of the world’s population accessible within four hours by plane.
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