Parks expected to create up to 7,000 jobs and add $2.5 billion to GDP by 2025
KIZAD, one of the fastest growing industrial zones in the Middle East and part of Abu Dhabi Ports, today launched KIZAD Polymers Park, which will form an integral part of the polymers conversion ecosystem in the Emirate.
The Park aims to be a major economic driver for the UAE, producing 300-400 kilo tonnes of plastic products a year, creating up to 7,000 new jobs, and contributing USD 2.5 billion to GDP by 2025.
The potential export market for the Park is estimated at $500 million annually, and it will ensure Abu Dhabi is a hub for developing the latest innovations in sustainability and technology in the industry, including new and advanced and polymer technologies, such as composites and 3D printing.
The strategic collaboration framework between Abu Dhabi National Oil Company (ADNOC) and KIZAD Polymers Park aims to accelerate investment and innovation in the region’s plastics industry.
The collaboration aims to offer companies swift and cost-effective access to polymers as well as the option to invest in the Ruwais Conversion Park – an initiative that will take shape over the next few years.
Having the state-of-the-art Khalifa Port on its doorstep also provides KIZAD Polymers Park access to polymers distribution, logistics, storage and trading across the globe, as well as ensuring raw material supply from other polymers producers in the region and globally.
Meanwhile the Ruwais Conversion Park will provide opportunities for downstream conversion of materials that may be economically challenged to transport over longer distances for further conversion.
The investor will have the ultimate flexibility to establish a diverse set of long-term competitive facilities between these two sites.
These initiatives further support and build on Abu Dhabi’s ambition to become a global hub for polymers conversion. The joint efforts by both entities also aims to create a sustainable and competitive industrial landscape in Abu Dhabi.
Foreign firms can take advantage of 100% foreign ownership via the free zone with the benefit of full repatriation of profits or benefit from the park’s flexibility and choose a mainland-based license instead.
They can also benefit from direct access to raw materials from UAE producers, such as Borouge and ADNOC, as well as access to other major producers in the region and a comprehensive portfolio of specialised raw materials that could be imported if not available domestically.
ADNOC is making progress on its Downstream strategy that will see it triple its current petrochemical capacity over the next five years by introducing a whole suite of diverse products that enable many new value chains in the UAE.
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said: “Through this strategic collaboration framework with ADNOC, KIZAD is helping Abu Dhabi become a major global hub for polymers conversion, supporting industrial diversification across the UAE in support of Abu Dhabi Economic Vision 2030.
“Polymer markets are growing fast owing to high demand for these products. We at Abu Dhabi Ports are working through KIZAD to address the needs of companies operating in the polymer sector via world-class logistics services, warehouses, and integrated infrastructure as well as sustainability initiatives to put an end to plastic waste.”
The global plastics and polymers market was worth $611.9 billion last year, according to international consultants The Business Research Company, with growing degree of recycling among the trends in the industry.
This trend will be reflected by KIZAD Polymers Park stakeholders, who support the vision of a circular economy and the development of long-term solutions in which plastics never become waste, promoting sustainability as a business objective rather than simply a corporate responsibility.
KIZAD Polymers Park was launched at ArabPlast 2019, the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region, which runs until 8 January 2019 at Dubai World Trade Centre.
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