- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Riding on the interest from the construction, logistics and automotive sectors, the Khalifa Industrial Zone Abu Dhabi (Kizad) has increased its number of investors by 15 per cent during the first quarter of 2015.
Around 71 companies have opted for this industrial hub, located close to the Khalifa Port, as their manufacturing or logistics base.
Around nine standard musataha agreements have been signed with different companies in the first three months of this year. A musataha agreement is a long-term property right agreement that ensures the investor legally owns all the assets developed on the plot of land within Kizad. The Abu Dhabi Ports Company, the operator and developer of Kizad, has now leased a total of 11 million square metres of land in the trade and logistics zone.
Some of the main industrial sectors targeted by Kizad include aluminum, steel, engineered metal products, petrochemicals and chemicals, pharmaceuticals and healthcare equipment, food, paper, print and packaging, trade and logistics. One of the world’s largest single-source steel foundries producing automotive parts is expected to start production shortly.
Kizad already houses an aluminum smelter unit which also makes the most of its proximity to the Khalifa Port to shorten the supply chain in procuring raw materials.
Khalifa Port acts as a gateway for exports for most of the manufacturing companies. The port’s potential is expected to be boosted by the rapid growth of this industrial zone. The results are already showing, with the container terminal witnessing a 35 per cent year-on-year uptick in the volumes handled in the first quarter of 2015.
Kizad aims to generate around 150,000 jobs and contribute to around 15 per cent of Abu Dhabi’s non-oil GDP by 2030.
• Kizad’s number of investors has grown by 15 per cent in Q1 2015
• It aims to generate 150,000 jobs and contribute to capital’s GDP
• Khalifa Port witnesses strong growth in handling of containers
Source: S. Dhar, Special to Properties
The writer is a freelancer