Abu Dhabi / WAM
This week, Adnoc shared the range of opportunities made available by their planned expansion of Abu Dhabi’s petrochemicals industry with manufacturers and investors at the “Make it In the Emirates” forum, held in Abu Dhabi.
Adnoc has long been an engine for and champion of industrial growth in the UAE and its new chemicals joint venture with ADQ, Ta’ziz, will catalyse the nation’s next generation of economic development and diversification.
The “Make it in the Emirates” forum brought together the largest industrial companies from across the UAE to share their procurement plans and detail how these translate into local manufacturing and investment opportunities. During the forum, over 20 industrial investors also signed Expressions of Interest for activities in the Ta’ziz Light Industrial and Services Zones.
Ta’ziz is a critical enabler of the UAE’s industrial development ambitions. Launched at the end of 2020, Ta;ziz will drive and enable expansion of the Ruwais Industrial Complex, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors. Ta’ziz comprises of three zones: The AED14 billion Ta’ziz Industrial Chemicals Zone, the Light Industrial Zone, and the Industrial Services Zone. The Chemicals Zone will host chemicals production at world-scale, while the Light Industrial Zone will be home to downstream conversion industries. These industries will convert the outputs of the Chemicals Zone into consumable, end-used products. The third zone is the Industrial Services Zone, which will house a variety of companies providing the necessary services required by the Ta’ziz industrial zones and the wider Ruwais Industrial Complex.
Leading international partnerships
Since its launch, Ta’ziz has made significant progress and has attracted international and local private sector investor interest for Ta’ziz chemicals projects. Several announcements were made in 2021. These strategic international partnerships will enable Ta’ziz to leverage the unique market insights, capabilities, and technology to implement global best practice and ensure long-term operational sustainability.
Agreements have been signed with Fertiglobe, a partnership between Adnoc and OCI N.V., to produce clean, low-carbon ammonia. The partnership was later joined by energy leaders GS Energy and Mitsui from two key markets for the UAE, the Republic of Korea and Japan respectively. Ammonia is widely used as an industrial fertilizer in the agricultural sector and is also considered a carrier fuel for hydrogen, which has been identified as a key driver of the energy transition. Ta’ziz will be producing low-carbon ammonia at world-scale to accommodate the growing demand for low-carbon ammonia.
India’s Reliance Industries and UAE company Shaheen have signed an agreement to produce three critical raw materials, Ethylene Dichloride (EDC), Chlor-alkali (CA) and Polyvinyl Chloride (PVC), in a AED7 billion chemicals production facility at the Ta’ziz Industrial Chemicals Zone. The end-uses made possible through the production of CA include water treatment, metallurgy, and textiles. Both EDC and PVC benefit the housing industry, infrastructure, and other consumer goods. The facilities will produce these chemicals for the first time in the UAE, enabling import substitution and meeting local and regional demand as well as unlocking opportunities for export internationally.
Ta’ziz has also announced its partnership with global methanol player, Proman. Not only is this Proman’s first partnership in the UAE, but methanol will also be produced in the country for the first time. Methanol is a versatile chemical which uses include fuels, construction, solvents, pharmaceuticals and the manufacture of textiles.
Leading local partnerships
In December 2021, the Industrial Chemicals Zone also announced partnerships with eight leading UAE-based investors. These partnerships mark the first domestic Public Private Partnership in Abu Dhabi’s downstream and petrochemicals sector. Involving the private sector demonstrates Adnoc’s commitment to supporting local industry and developing new avenues for participation in the country’s growth strategy. The agreements comprise commitments by the investors to invest in up to 20% stake in a portfolio of chemicals projects worth AED14 billion within the Ta’ziz Industrial Chemicals Zone.
Delivering on UAE’s national strategy
A catalyst for growth, Ta’ziz is strategically aligned with key development strategies defined for the UAE; in particular with ‘Operation 300bn’, which has the goal to raise the UAE industrial sector’s contribution to national gross domestic product (GDP) to AED300 billion by 2031. ‘Operation 300 bn’ is championed by MoIAT to augment the UAE’s In-Country Value by developing industrial sectors to grow the domestic economy and raise the UAE’s position internationally as an industrial leader.
The growth of local industry will enable import substitution for the domestic market, grow the country’s exports to international markets, and create new job opportunities in the country. The development of this industrial ecosystem will promote job growth and cost competitiveness, arising from import substitution, of globally in-demand critical raw materials. The chemicals zone is expected to become operational in 2025.