Khalifa Industrial Zones Abu Dhabi (Kizad), the largest integrated trade, logistics, and industrial hub in the region, in its new avatar as part of the Economic Cities and Free Zone (EC & FZ) cluster of AD Ports Group, has seen continued growth over the last years, attracting investors despite the impact of the Covid-19 pandemic.

“Despite the global challenges due to the Covid-19 pandemic, we saw continued growth in Kizad over the last years, a clear indication that our strategy to promote Abu Dhabi as a destination for manufacturing and industrial investments is delivering results,” Abdullah Al Hameli, Head of the Economic Cities and Free Zone Cluster at AD Ports Group, told the Gulf Industry in an exclusive interview.

The leading investment hub said it closed 2021 with significant foreign direct investment (FDI) from segments such as e-commerce, plastics, logistics, and light manufacturing.

“The investment that we put into our economic cities, into Kizad, and the investments that we’ve secured across our manufacturing base have led to a significant amount of volume across our ports and logistics businesses,” said Al Hameli.

Kizad has attracted significant investments from plastics segment in 2021

Today, the EC&FZ cluster, which now comprises Kizad and ZonesCorp (the largest operator of purpose-built economic zones in the UAE), garners a market share of around 55 per cent of the total area of industrial and free zones in the UAE and nearly 12 per cent of the total area of industrial and free zones in the GCC.

The zone currently covers a land area of over 550 sq km that hosts more than 1,500 global, regional and local businesses. The portfolio of companies today includes key players within the food, logistics, automotive, polymers, metals, oil and gas, life sciences, and advanced
technology industries.

“Through the Economic Cities & Free Zones Cluster we continue to drive the nation’s ambition to diversify and develop its economy through the development of the UAE’s industrial sector, enhancing its role in stimulating the national economy,” Al Hameli said.

STRONG FINANCIALS

AD Ports Group, whose shares began trading on the primary market of the Abu Dhabi Securities Exchange (ADX) on February 8, 2022, reported a solid financial performance for the financial year 2021. The group achieved revenue growth of 14 per cent year-on-year to AED3.9 billion ($1.1 billion) compared with AED3.4 billion $933 million) in 2020, driven by volume growth, business diversification and new partnerships.

A significant portion of this revenue, said Al Hameli, was supported by long-term leases and strong relationships with major industrial tenants in its EC & FZ Cluster. The average lease term at Kizad and Khalifa Port is between 40 and 50 years, he added.

The EC&FZ cluster leased 3 million sq m of land during the period, reflecting the wider economic recovery from the impact of the Covid-19 pandemic. This included the Life Science Park, a dedicated area for the development of medical-related products, as well as Rahayel Automotive and Mobility City, the first integrated hub for the automotive industry in the region.

“Our journey of global growth and development continues full steam ahead,” Al Hameli commented.

COVID-19 IMPACT

To emerge from a challenging Covid-19 pandemic situation, Kizad took several steps to boost the business at the free zone.

Global firms such as Weatherford has pumped in substantial FDI in Kizad

“As one of the leading enablers of industry, it has been a fundamental responsibility for Kizad to provide businesses with the opportunities to be competitive in their respective markets despite the Covid-19 impact,” he said.

For instance, Kizad, saw tremendous uplift in warehousing demand during the pandemic, leading it to develop an additional 5 million-sq-ft warehousing solution.

“Our response was to introduce SME relief packages in line with the UAE’s efforts to protect SMEs in the country from the economic impact of the coronavirus pandemic,” Al Hameli said.

The economic stimulus package offered savings of up to 36 per cent for businesses operating within the free zone and for SMEs coping with the Covid-19 pandemic. The package offers both existing and prospective customers savings on new registrations and renewals, along with a waiver on security deposit.

This was in addition to a freeze on rent escalation during 2021 for all businesses in its EC &FZ cluster, in a move aimed at providing further relief to its customers in Kizad and ZonesCorp and boosting the Abu Dhabi economy in these challenging times.

STRATEGIC REORGANISATION

The year 2021 also saw the completion of an extensive rebranding exercise that not only resulted in a new brand name but also a strategic reorganisation of the group’s portfolio.

From Abu Dhabi Ports, the group announced the launch of its new brand and its new name: AD Ports Group in addition to restructuring its various assets under the umbrella of five clusters – Digital, Economic Cities & Free Zone (EC&FZ), Logistics, Maritime, and Ports.

“By bringing together our portfolio of diverse clusters and businesses under a single umbrella, we as an organisation are now well-positioned to drive forward our strategic vision for reimagining the world trade by embracing bold new ideas and innovative technologies,” he added.

MAJOR MILESTONES

Kizad, under the EC &FZ portfolio, at AD Ports Group has seen landmark developments in 2021. Some key milestones in 2021 include:

* The development of the Life Science Park, a dedicated area for the development of medical-related products, as well as Rahayel Automotive and Mobility City, the first integrated hub for the automotive industry in the region.

* Lepidico’s move to establish an AED 348 million lithium production facility in Kizad.

* AD Ports Group’s agreement with Shandong Port Group, to establish the region’s first Tyre Hub at Kizad for the storage and distribution of tyres.

* Kizad and Helios Industry’s move to establish a sustainable green ammonia production facility in Kizad.

* A dedicated 19,000 sq m temperature-controlled warehouse facility in Kizad with the capacity to hold more than one million vials of the Covid-19 vaccine. This is an instrumental part of our role as a member of Abu Dhabi’s ‘Hope Consortium’.

DIGITAL SERVICES

Meanwhile, towards digitalisation and modernisation of the freezone, Al Hamlei said that AD Ports Group is leading national efforts towards the UAE’s economic diversification goals and Operation 300bn industrialisation strategy via the development of sector-specific industrial ecosystems within its Economic Cities & Free Zones Cluster.

“We are committed to supporting the UAE’s diversification and 300bn operation strategy that aims to grow the industrial sector and enhance its role in stimulating the country’s economy,” Al Hameli said.

“AD Ports Group fosters collaborative partnerships with the world’s leading market players in our EC & FZ Cluster to realise a unique, integrated offering that combines the very latest in services, facilities, and systems,” he added.

Bolstered by Ad Ports Group’s Digital cluster, customers can make informed decisions based on real-time analytics, and get up to the minute updates on their service requests.

Kizad digital services, available through Maqta Gateway, enable customers to view all services offered by Kizad for Free Zone and Domestic Economic Zone customers. Customers can track the status of their requested services and view and download documents required for the completion of the process.

“As we continue to bring more services online, the digital submission of documents also means that we are well on our way to completely paperless transactions in the future,” he added.