Investing in Abu Dhabi’s Industrial Sector
The Government of Abu Dhabi believes that the industrial sector must be a pioneering economic sector that contributes to the country’s prosperity and welfare.
The economic diversification programme, undertaken recently by the Government of Abu Dhabi, has enabled dramatic growth in the tourism, real estate, manufacturing and heavy industry sectors, ensuring this stability should remain in the long term.
Aluminium, iron, steel, glass, metal, plastics and petrochemical industries are some of the heavy industries identified to stimulate the growth in the industrial sector and create thousands of new job opportunities for UAE nationals.
The UAE’s progressive economic agenda, liberalisation and the growing role of the private sector have stimulated huge amounts of foreign direct investment into the country, reaching $ 14 billion (AED 51.4 billion) in 2008 with a significant share being invested in Abu Dhabi despite a major decline in global investment flows.
New regulations, reforms of the economy have laid the groundwork for a solid investment outlook in the UAE’s capital.
Why to Invest in the Industrial Sector?
Strategic geographic location.
Robust GDP growth.
State of the art infrastructure and a multi-modal transportation network.
Political stability.
Government commitment to large scale, structured investment programmes.
Double taxation agreements with several countries.
Preferential access to neighbouring and international markets through numerous trade agreements.
Safe and friendly environment.
Strong support by the Emirate for industrial projects.
GDP is projected to rise significantly over the coming few years driven by the oil and gas industry as well as the diversified manufacturing base.
Abundance of energy: Abu Dhabi owns vast hydrocarbon wealth accounting for 95% of the country’s oil reserves and 92% of its gas.
Focus on developing specialised economic zones in order to strengthen the national economy and to support it with additional income sources.
How to Establish an Industrial Project?
As part of Abu Dhabi’s effort to create a favourable climate for industrial development and attract more investment into the industrial sector, it has introduced a single window system to streamline the licensing process known as One Stop Shop (OSS). The programme offers the required services, such as expediting the process, reserving the land and issuing the licence and significantly reduces the time needed to establish an industrial project. The service is offered by the ZonesCorp, which is directly responsible for the establishment, management and operation of specialized economic zones in Abu Dhabi and the Khalifa Port and Industrial Zone (KPIZ), the multi-purpose facility currently being developed Abu Dhabi Ports Company (ADPC) in Al Taweelah area.
To know more about the OSS programme of ZonesCorp and KPIZ, please read the related articles in the “Helpful Links”.
Existing Industrial Zones and Areas
Industrial Zones of Special Economic Nature
The Industrial City of Abu Dhabi (ICAD I, ICAD II, ICAD III) and Al Ain Industrial City (I and II) are managed by Higher Corporation for Specialised Economic Zones ( ZonesCorp) and are known as industrial zones of special economic nature.
Al Ruwais Industrial Complex
Al Ruwais Industrial Complex, located about 240 km west of Abu Dhabi, was developed by Abu Dhabi National Oil Company (ADNOC) and hosts a number of petrochemical industries. It includes an oil refinery plant, natural gas liquids fractionation plant, a fertiliser plant, a marine terminal and sulphur handling terminal. One of the existing industries is Al Ruwais Refinery with a daily production capacity of 120,000 barrel of oil per day.
Mussafah Industrial Area
The Mussafah Industrial Area, situated 30 km from the Abu Dhabi city centre adjacent to Mussafah Port, is managed by Abu Dhabi Municipality. It covers 14 km² and is made up of six varieties of industrial zones based on their activities.
- Zone 1: Automobiles, Machineries & Spare Parts shops
- Zone 2: Food, Textile & Soft drink manufacturing
- Zone 3: Engineering works, Wood and Herbal Industries
- Zone 4: Chemical, Plastic & Petrochemical Industries
- Zone 5: Building & Construction related materials
- Zone 6: Advanced Technology Industries
Other Industrial Areas
In addition, there are small industrial areas in Mafraq and Madinat Zayed.
Future Industrial Zones
Khalifa Port and Industrial Zone (KPIZ)
Once completed, the Khalifa Port and Industrial Zone (KPIZ), developed by Abu Dhabi Ports Company (ADPC), will also comprise special economic zones and free zones. The industrial free zone will be developed in phases and is projected to be complete by 2015. To know more about KPIZ, you can read the article “Khalifa Port and Industrial Zone”.
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