- Potential anchor chemicals projects selected as part of USD 5 billion phase one investment
- Development of Ruwais Derivatives Park to commence in early 2021 with initial chemicals production expected in 2025
- TA’ZIZ investments to lay groundwork for Abu Dhabi's next generation of technology-driven industrial growth
The Abu Dhabi National Oil Company (ADNOC) and ADQ, one of the region's largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi's diversified economy, today announced TA'ZIZ as the name of the new joint venture (JV) established by both companies, which will drive the development of industrial projects within the planned Ruwais Derivatives Park and act as a catalyst for the UAE's economic diversification and technology-led growth.
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. In addition, it aligns with ADNOC's drive to stretch the value from every barrel refined, shipped and sold, also targeting self-sufficiency with domestic production. In July 2020, ADNOC and ADQ announced their intention to establish the JV with incorporation in Abu Dhabi Global Market.
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. Potential investment projects selected for a first phase will amount to more than USD 5 billion (AED 18 billion) at the Ruwais Derivatives Park.
The Chairman of the TA'ZIZ Board of Directors is Mr. Khaled Salmeen (ADNOC), with Mr. Ahmed Jasim Al Zaabi (ADNOC), Mr. Omar Suwaina Al Suwaidi (ADNOC), Mr. Nabeel Qadir (ADQ), and Mr. Hamad Al Hammadi (ADQ) being appointed as Board members. Mr. Khaleefa Yousef Al Mheiri (ADNOC) is appointed as Acting Chief Executive Officer.
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 USD 3 billion (AED 11 billion), with most of the chemicals produced in the UAE for the first time.
An industrial ecosystem will be created by ADNOC and ADQ, including a new port, utilities, infrastructure, feedstock supply and shared services at a total cost of well over USD 2 billion (AED 7 billion). These facilities will be made available to new investors under a "plug and play" concept, meaning that new projects can be plugged into the existing park infrastructure, lowering the cost of investment and further enhancing the Ruwais Derivatives Park's competitiveness. These developments will enhance the efficiency of logistics across the new identified projects, supporting the oil and gas services sector and associated industries.
The creation of a park management company is also underway to ensure ease of doing business and to help facilitate contact with relevant service providers and Government agencies for investors. This entity will prioritize digital integration across its services offer, further strengthening the Ruwais advanced technology value proposition over the long-term.
Contracts have been awarded for the first stages of development for the park site, and work is already underway. This includes 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.
The Ruwais Derivatives Park enjoys strong synergies with ADNOC's integrated downstream assets for feedstocks and services, as well as advantaged maritime, land and air logistics and transport links. The park site is adjacent to the Ruwais Industrial Complex and enjoys a favorable 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. The city of Ruwais is today well-positioned to further grow and flourish with the influx of families that seek to build careers and lives in what has become a dynamic, highly attractive residential community.
Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to email@example.com. You can also follow ADQ on Twitter, Instagram and LinkedIn.
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