Adnoc, ADQ unveil $5b JV to drive growth in chemicals sector
The Abu Dhabi National Oil Company (Adnoc) and ADQ, a leading state fund, unveiled on Tuesday their new joint venture initiative Ta’ziz, which envisages a $5 billion investment in the first phase of development in the upcoming Ruwais Derivatives Park.
In a statement, both companies said Ta’ziz would drive the development of industrial projects within the park and act as a catalyst for the UAE’s economic diversification and technology-led growth.
“Ta’ziz combines the strengths of Adnoc and ADQ to create a unique platform that will act as a key driver and catalyst for the UAE’s industrial development and economic diversification,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO.
“The new partnership will strengthen our position as a globally competitive chemicals hub and destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base," he said.
Mohamed Hassan Al Suwaidi, CEO of ADQ, said the creation of Ta’ziz embodies the strategy and aspirations of both joint venture partners, not only in contributing to and diversifying the key industrial component of the UAE’s future economy, but also in forging local collaborations needed to achieve such important developmental milestones.
“With companies such as Abu Dhabi Ports, Abu Dhabi National Energy Company, Etihad Rail, Emirates Steel, Ducab and Arkan, ADQ has much to bring to this joint venture, and we will fulfil the trust invested in us to ensure the success of Ta’ziz,” said Al Suwaidi.
The board of directors the new joint venture will be headed by Adnoc’s Khaled Salmeen as chairman, and includes Ahmed Jasim Al Zaabi (Adnoc), Omar Suwaina Al Suwaidi (Adnoc), Nabeel Qadir (ADQ), and Hamad Al Hammadi (ADQ) as members. Mr. Khaleefa Yousef Al Mheiri (Adnoc) has been appointed as acting CEO.
The joint venture will explore potential projects to manufacture a wide range 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 $ 3 billion with most of the chemicals produced in the UAE for the first time.
The range of chemicals includes Chlor-Alkali, Ethylene Dichloride, Methanol, Maleic Anhydride, Ammonia, Isopropyl Alcohol, and Elastomers.
The statement said the JV partners would create an industrial ecosystem, including a new port, utilities, infrastructure, feedstock supply and shared services at a total cost of well over $2 billion. “These developments will enhance the efficiency of logistics across the new identified projects, supporting the oil and gas services sector and associated industries.”
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, said the statement.
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.
Contracts have been awarded for the first stages of development for the park site, and work is already underway.
Several design and engineering contracts will be awarded early 2021 for the design of the chemical plants as well as the required ecosystem.
Leading Australian university tournament online due to Covid, still... READ MORE
The contraction is ebbing with gradual normalisation in activities... READ MORE
A website has been asking respondents to participate in a survey. READ MORE
Failure to register could lead to fines or imprisonment. READ MORE
The decision frees up millions of dollars in financing to support the ... READ MORE
'In the days ahead, transition officials will begin meeting with... READ MORE
Under Central Bank regulations, a Hawala provider faces penalty in... READ MORE
Several categories of business licences will no more require Emiratis ... READ MORE