CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY · CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY....

/ CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY

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/ KIZAD POLYMERS PARK

IDEAL location to serve the plastics consumption markets in the Middle East and Africa

Volume rebates on raw materials available within the Park

Most competitive utility rates in the UAE

Shorter transits and lower order batch sizes to reduce supply chain costs

Essential products and services in polymers value chain within the Park

KIZAD Polymers Park is a custom-built cluster for the global plastic and polymers industry looking to take advantage of proximity to raw materials and a reliable supply of utilities at competitive rates. KIZAD Polymers Park, co-designed and developed with technical experts and leading regional entities in the polymers industry, offers easy and preferential access to raw materials, highly developed infrastructure, global connectivity and favourable investment policies.

CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY

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Major brands that are already operating out of KIZAD Polymers Park include Songwon (additives and speciality chemicals), Cosmoplast (households, building materials & infrastructure products), Interplast (PVC compounds, packaging, electrical products etc.), Palletco (industrial packaging solutions), and Schmidt Logistics (specialized logistics for dry bulk products) to name a few.

KIZAD Polymers Park aims to be a major economic driver in the region, producing 300-400 kilotonnes of multi-use plastic products a year, and creating up to 7,000 new jobs by 2025.

Strategic Partnerships with key players such as Borouge, ADNOC etc

Access to training, research and product development assistance from strategic partners

Polymer-centric logistics and infrastructure - mega distribution centre and packaging plant

Business facilities suitable for operations of any type and scale

Free zone and domestic industrial zone jurisdictions


1 Gulf Petro Chemicals Association 2 World Economic Forum 2019 3 World Bank 2019 4 McKinsey 2019

#1IN THE MENA REGION

• Fastest Growing Polymers Industry in the GCC 1

• Global Competitive Index 2

• Ease of Doing Business 3

• Access to Electricity 3

IN THE UNITED ARAB EMIRATES

• Highest Contributor of the UAE’s GDP

• Highest Oil & Gas Reserves in the UAE

• Most Competitive Utility Rates in the UAE

• Most Developed Technology Base in the Middle East 4

#1United Arab Emirates Abu Dhabi


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WELCOME TO

KIZADDEVELOPING ONE OF THE LARGEST INDUSTRIAL AND LOGISTICS ECOSYSTEMS IN THE WORLD

Khalifa Industrial Zone Abu Dhabi [KIZAD], a subsidiary of Abu Dhabi Ports, is the largest industrial and free trade zone in the MENA region and offers the most competitive business setup solutions and world-class infrastructure facilities in the UAE. Spread over 410 km2, KIZAD is home to over 600 companies across industries such as Food Processing, Polymers, Metals, Automotive, Pharmaceuticals, Logistics, Oil & Gas, among others.

Setting up at KIZAD enables businesses to benefit from the strategic location, faster access to markets, low set up and operational costs, flexibility in scale of operations and efficient investor support services.

IDEAL LOCATION TO SERVE THE MARKETS IN THE MENA REGION

Strategically located between Abu Dhabi and Dubai, the two most important economic centres of the region, KIZAD is ideally positioned to serve the key consumption markets in the GCC, Middle East and Africa.


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55,600 DIRECT EMPLOYEES

278,000 JOBS SUPPORTED

$50.2BILLION DOLLARS

34.4MILLION TONS

$40BILLION DOLLARS

1 Goldstein Research 2 GPCA

/ GCC – Rich in Polymer Raw Materials

Value of GCC Polymer Industry by 2025 1

Forecasted Volume of GCC Polymer Industry by 2023 2

Number of Direct Employees in the GCC Polymer Industry in 2018 2

Jobs Supported by the Polymer Industry in the GCC in 2018 2

The Polymer Industry’s Total Contribution to the Gulf Region’s GDP in 2018 2

UNITED ARAB EMIRATES


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4.1MILLION TONS

1 ADNOC 2 GPCA

UAE Polymer Output in 2018 2

/ UAE – A HUB for the POLYMERS sector

200%ADNOC’s Planned Growth in Petrochemical Capacity by 2025 1

UNITED ARAB EMIRATES

15.1MILLION TONS

Production Capacity of Polymers in UAE by 2025 1


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/ BUSINESS ECO SYSTEM AND INFRASTRUCTURE

STRATEGIC PARTNERSHIPS DELIVERING VALUE FOR POLYMERS DOWNSTREAM ACTIVITIES

KIZAD Polymers Park is the result of strategic collaborations with key players in the industry such as Abu Dhabi Ports and Abu Dhabi National Oil Company (ADNOC), one of the leading energy producers operating across the entire hydrocarbon value chain.

The strategic collaboration framework between ADNOC and KIZAD Polymers Park aims to accelerate investment and innovation in the region’s plastics industry while offering companies swift and cost-effective access to polymers.

Abu Dhabi’s position as the key crude oil producer and petrochemical hub in the region also helps the polymers conversion industry in the UAE. Major raw materials suppliers such as Borouge present in KIZAD offer competitive pricing and better credit terms for investors. Proximity to such strategic players enables faster delivery of materials, smaller order quantity and flexibility in new product development.

In addition to the raw materials available in Abu Dhabi, downstream polymer converting units in KIZAD Polymers Park can take advantage of the abundant supply of raw materials by other key providers in the GCC region.

RAW MATERIALS WITHIN THE PARK AND AVAILABLE IN THE REGION

RELIABLE AVAILABILITY OF POWER, GAS AND WATER

KIZAD Polymers Park has sufficient infrastructure network for all necessary utilities such as power, gas and water, ensuring reliable and efficient supply for all polymers conversion activities. Abu Dhabi offers the most competitive utility rates in the UAE, making it a very cost-efficient location for downstream manufacturing activities.


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PRODUCTS AND SERVICES IN POLYMERS VALUE CHAIN

Abu Dhabi hosts a vibrant polymers ecosystem, including diversified raw materials, production systems, technical support, polymers distribution and logistics. This ecosystem caters to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-finished products; end-use customers, such as household goods, agriculture and hygiene products; material science, including compounded and composite materials, and 3D Printing.

KIZAD POLYMERS PARK PACKING PLANT

The packing plant in KIZAD Polymers Park has three fully automated ‘Fill, Form, Seal’ – FFS polymer packing lines with a capacity of 2,000 bags/hour and one bulk bag filling line. The overall packing capacity of the plant is more than 700,000 tonnes per year.

POLYMER-CENTRIC LOGISTICS AND INFRASTRUCTURE

World-class container handling facilities at Khalifa Port act as a key enabler for the polymers industry at KIZAD. Facilitating the polymer value-chain, Khalifa Port and KIZAD host over 230,000 m2 of warehouses, which have an annual throughput exceeding of 1.5 million tonnes.

Specialised service providers present in KIZAD offer packaging, product handling and intermodal transportation of dry bulk products. They cater to the logistics requirements of dry petrochemical and mineral industries across the region and internationally.


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/ Availability of polymer & plastic raw materials in the region

• Urea

• Ammonia

• Ethylene

• Polyethylene

• Polypropylene

• Low Density Polyethylene (LDPE)

• Natural Gas

• Industrial Gases

• Propylene

• Styrene Monomer

• Ethylene Glycol

• Polypropylene

• Paraxylene

• PET

• Formaldehyde

• Acetic Acid

• Polyesters

• Acrylics

• Methylamines

• Polycarbonate

• HDPE

• Ethylene

• Propylene

• Butadiene

• Methanol

• Styrene Monomer

• Benzene

• Paraxylene

• Glycols

• Olefin

UNITED ARABEMIRATES KUWAIT OMANSAUDI ARABIA

ABU DHABI

RIYADH KUWAIT CITY MUSCAT


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“ We anticipate great success in Abu Dhabi, and we appreciate KIZAD’s support in

helping us set up and connect to its integrated polymer-centric logistics hub.Our presence in KIZAD emphasises our determination to strengthen and expand our offering and ensure our business breaks into new markets. Having swift access to key raw materials from within the KIZAD Polymers Park and the ability to ship faster to market thanks to the world-class infrastructure available at KIZAD, is a major advantage to companies such as ours”.

ASHISH MALANI CEO, SHRINATH FLEXIPACK

“ We are glad to contribute in such initiative, in line with Abu Dhabi’s long-term strategy.

GCB will enable the development of KIZAD and add value to the polymers ecosystem”.

MOHAMMED YOUSIF AL NOWAIS BOARD MEMBER, GULF COMPOUND BLENDING (GCB)

“ ADNOC is proud to collaborate with Abu Dhabi Ports and KIZAD to further

strengthen and develop the UAE’s conversion industry. Together, we will work to ensure alignment with the Ruwais Derivative & Conversion Parks and other industrial parks catering to different parts of the polymers value chain, offering investors a wide choice of options, while also building on synergies. We welcome the competitive commercial environment this will create. This partnership is another example of ADNOC’s determination to support the diversification of Abu Dhabi’s industrial base as we implement our downstream strategy and associated corporate transformation programs”.

ABDULAZIZ ALHAJRI DIRECTOR, ADNOC DOWNSTREAM DIRECTORATE

“ India has an enormous plastic and polymers manufacturing industry and the UAE is one

of our top five import markets. The MoU with KIZAD and the potential to work with them to increase our mutual opportunities in new markets is an excellent strategic move on both our parts”.

MEELA JAYADEV PRESIDENT, AIPMA


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11 Kingdom of Saudi Arabia

1 Lebanon8 Egypt6 Morocco1 Israel

11 Turkey

Red, Black & Mediterranean Seas

5 Oman1 Yemen

17 India17 Pakistan

3 Sri Lanka2 Somalia1 Kenya

INDIAN OCEAN

36 China

3 Hong Kong5 South Korea9 Singapore3 Malaysia

PACIFIC OCEAN (ASIA)

3 Italy5 Greece2 Germany3 Netherlands2 Belgium

5 France6 Spain

2 United Kingdom

Mediterranean Sea & Atlantic Ocean(EUROPE)

4 United States of America5 Bahamas

Atlantic Ocean(NORTH AMERICA)

82 United Arab Emirates16 Kingdom of Saudi Arabia13 Kuwait

9 Oman9 Bahrain5 Qatar

10 Iraq

ARABIAN GULF & THE GULF OF OMAN

WEEKLY DIRECT CONTAINER LINERS CONNECTING KHALIFA PORT AND KIZAD WITH THE WORLD

EASY GLOBAL ACCESSCreating Possibilities to Grow and Succeed


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The Ideal Location to Serve the Plastics Consumption Markets

Part of Khalifa Industrial Zone Abu Dhabi (KIZAD), KIZAD Polymers Park offers true multimodal access through the port, roads and upcoming rail - all available onsite - and five major international airports within just 2 hours’ driving distance.

UNITED ARAB EMIRATES GDP USD 435.7 Billion (2018) POPULATION 9.36 Million (2016)

SHARJAH GDP USD 26.4 Billion (2018) Population 1.45 Million (2016)

DUBAI GDP USD 108 Billion (2018) Population 2.6 Million (2016)

ABU DHABI GDP USD 253.5 Billion (2018) Population 2.9 Million (2016)

AL AIN


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/ KHALIFA PORTStrategically located halfway between Abu Dhabi and Dubai, Khalifa Port is the first semi-automated, deep-water, container port in the GCC region. Fully owned by Abu Dhabi Ports, the port handles container cargo, general cargo, roll-on and roll-off (RoRo) as well as break-bulk cargo.

Connectivity is at the core of Khalifa Port’s uniqueness. It serves over 25 shipping lines, offering global reach and direct links to major international destinations. The port is adding capacity to handle over 9 million TEUs by 2024, significantly increasing from its current capacity of 2.5 million TEUs. It will also be the first port in UAE to be linked through the new Etihad Rail network, which is currently under construction.


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/ Free Zone and Domestic industrial zone Facilities

KIZAD offers both Free Zone and Domestic Industrial Zone facilities for investors, who can choose their facilities based on their business strategy and requirements.

Free Zone

The Free Zone jurisdiction allows 100% foreign ownership in companies, and it is suitable for wholesale distributors, re-exporters, warehousing activities, service providers and manufacturers targeting markets outside the MENA region.

• 100% foreign ownership in companies

• 0% customs duty

• 0% corporate, personal and sales tax

• No restrictions on capital and profit repatriation

• Designated Zone for VAT Exemption

• No minimum capital requirements

Domestic industrial zone

Companies in the domestic industrial zone can enjoy direct access to the markets in the UAE and the GCC area. Goods produced in the domestic industrial zone can be certified “MADE IN UAE” by the relevant authorities and can avail duty-free status in the GCC region.

• Joint venture with a UAE partner

• 0% corporate, personal and sales tax

• 0% customs duty for industrial raw materials and machinery

• Easy repatriation of profits and capital

• No restrictions on sales in the domestic market

• Potential for duty-free trade in the GCC


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Key feature Free Zone Domestic industrial zone

OWNERSHIP 100% foreign ownership Up to 49% foreign ownership

TAX (CORPORATE, INCOME & SALES)

100% tax free 100% tax free

VAT No VAT Standard VAT rate is applicable

SALES IN LOCAL MARKET Through distributors and / or local agents

Direct

CUSTOMS DUTY No customs duties within Free Zone

Standard customs duty for sales to local market (import) and GCC (first point of entry-import).

Standard customs duty to be paid on deposit, for goods in transit:

- Between points of entry (seaports/airports/borders) and Free Zones

- Between Free Zones and point of exit (export).

No customs duty applicable for sales of locally manufactured goods in GCC and very low duty structure in GAFTA countries (for National Industrial Licence Holders)

Standard customs duty for sales to local market (import) and GCC (first point of entry-import).

Customs duty exceptions on import of raw materials and machinery for manufacturing activities

Local customs duties applicable for imports into other countries.

Local customs duties applicable for imports into other countries

CAPITAL & PROFIT REPATRIATION 100% Allowed As per the contract between partners

LABOUR LAW Free Zone rules and labour law UAE labour laws


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Enabling Significant Cost Savings• Volume rebates on polymer raw materials

by key suppliers

• Prime location facilities at the most competitive lease rates

• The most competitive utility rates in the UAE

• Customs duty benefits on imports of raw material and capital goods for manufacturing

/ KEY CUSTOMER BENEFITS

Flexibility in Scale of Operations• Future-ready development with provisions for

expansion and integration with new projects

• High capacity utilities network and infrastructure provisioned to support businesses of all scales

• Option to operate for the local and regional/global markets through freezone and domestic industrial zone facilities

• Flexibility in lease tenure, structuring etc.

Connectivity and Proximity Benefits• Easy access to key markets through 2 global

ports, 5 international airports, multi-lane highways and planned rail, connecting KIZAD with the rest of the UAE and GCC

• Nearby production and storage facilities enable short delivery lead times

• Excellent connectivity to regional raw material producers

• Presence of supporting entities such as polymer packaging and specialised logistics services within the zone

Growing Community of Businesses, Clusters and Amenities• Multiple residential, social areas, leisure

facilities within 10 minutes’ drive

• Multiple onsite staff accommodation facilities are under various stages of planning and development

• Clustered approach with shared amenities for better planning and leaner development for customers

• Access to training, research and product development assistance from strategic partners


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+971 800 10 20 30

kizad.ae @kizaduae

[email protected]

At KIZAD we’re here to listen, support and deliver.

Connect with us to find out more.

CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY · CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY....

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