Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of AD Ports, has signed a lease agreement with Al Rawabi, one of the leading dairy and juice companies in UAE, to establish a $177 million worth production facility to meet the growing consumer demand.
As part of the agreement, Al Rawabi will initially develop a facility of two square kilometers in KIZAD with an additional three square kilometers slated for the future. The dairy farm will have 10,000 Al Rawabi cows and increase their export efforts across the wider GCC region.
“Al Rawabi’s confidence in KIZAD is a testament to AD Ports Group’s commitment to driving the UAE’s National Food Security Strategy through the supply of high-quality dairy and food products, while also contributing to the growth of the nation’s industrial sector. In addition to supporting the advancement of local farms and creating job opportunities in the local farming sector, our agreement presents a positive boost for regional consumers by offering easier access to fresh produce.”
Al Rawabi’s expansion comes as the UAE doubles down on efforts to bolster food security through increased local production. Last month, AD Ports Group announced plans to develop one of the region’s largest food trading and logistics centers at KIZAD.
Commenting on the agreement, Prof. Dr. Ahmed El Tigani, CEO of Al Rawabi, said, “Al Rawabi’s investment in KIZAD’s food ecosystem will enable us to service a broader scope of consumers both in the UAE and the wider region. The strategic location, access to food-related services, and readiness of land area in KIZAD will help Al Rawabi grow its operations long-term, increasing business reach and potential export across markets.”
Al Rawabi’s production unit will employ 200 people and will include milk parlors, a dairy plant, a maintenance workshop, a feed factory, staff accommodation and a biogas plant. It will also have fertilizer manufacturing amenities that will support the wider agriculture ecosystem in Abu Dhabi. The company expects to produce 23 million liters in its first operational year out of KIZAD and to move about 1,000 containers of goods annually.
The company stated that it will process waste from the project to produce green energy. The project also aims to generate 10 megawatts of clean power through the use of solar panels.