The Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) has signed investment agreements with eight UAE-based investors who will take up to 20 percent stake in a portfolio of projects worth $4 billion in the Industrial Chemicals Zone in Ruwais.
In the deal, which marks the first domestic public-private partnership (PPP) in Abu Dhabi’s downstream and petrochemicals sector, the local investors will be committing funds alongside Abu Dhabi National Oil Company (ADNOC), ADQ, and other global strategic partners.
The eight UAE investors include Al Dhafra Co-operative Society, Al Nasser Holdings, Alpha Dhabi Partners Holding, Arab Development Establishment, Buhairan Limited Company, Capital Investment, Mazrui International and Mazrui Energy Services and Riverside Investments.
“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. Looking ahead, we look forward to further growing a robust pipeline of investment and partnership opportunities at TA’ZIZ, welcoming leading investors who are ready to partner with us on the development of a globally competitive chemical and industrial hub.”
The TA’ZIZ Industrial Chemicals Zone has received significant interest from leading international and local investors alike. It has signed partnership agreements with Fertiglobe, a joint venture (JV) between ADNOC and OCI, as well as with Mitsui and GS Energy for a proposed blue ammonia production facility.
Further, TA’ZIZ has signed a deal with Reliance Industries, India’s largest private petrochemicals company, to form a JV to develop a major chemicals project in Ruwais. ADNOC has also joined with TAQA to develop a utility project to power the industrial hub. The TA’ZIZ Industrial Chemical Zone projects are currently in the design phase, with the starting date targeted for 2025.
Commenting on the agreement, Mr. Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ, said “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.”
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 the Ministry of Industry and Advanced Technology (MoIAT).
The recent local investor agreements follow a briefing at the ADNOC Business Centre in Abu Dhabi. The event, which presented investment opportunities at TA’ZIZ, was hosted in partnership with the MoIAT.
The chemicals sector is an integral part of the UAE’s Operation 300bn, which aims to raise the contribution of the country’s industrial sector to its gross domestic product (GDP) to $81.67 billion by 2031.