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/ CREATING POSSIBILITIES IN THE METALS INDUSTRY
/ CREATING POSSIBILITIES IN THE METALS INDUSTRY
/ KIZAD METALS CLUSTER
IDEAL Location to Serve the Growing Markets in Middle East and Africa
Presence of Anchor Industries Enabling Easy Access to Raw Materials: Aluminium & Steel
Reliable supply of power, gas and water at highly competitive rates
Unique Hot Metal Road to deliver Aluminium in molten form to the factory
Large areas of serviced land plots for future expansions
Choice of both Free Zone and Domestic Industrial Zone Facilities
KIZAD Metals Cluster is dedicated zone for the regional and global upstream, midstream and downstream metals industry looking to take advantage of highly competitive utility costs, proximity to raw materials and excellent infrastructure and transportation links supporting the industry.
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
KIZAD Metals Cluster offers the perfect platform for downstream metals conversion industries to serve the construction, infrastructure and industrial development projects in the Middle East and African markets.
Existing and upcoming projects in KIZAD Metals Cluster create a sustainbale industrial ecosystem covering raw material producers, wide range of downstream manufacturers and leading recycling and related service providers.
Major brands that are already operating out of KIZAD Metals Cluster include Emirates Global Aluminium (world’s largest ‘premium aluminium’ producer), Al Gharbia Pipe Manufacturing Company (LSAW steel pipes), TALEX (aluminium profiles and billets), DAC Aluminum (electrical conductive grade aluminium and aluminium alloy rods, wires, and bare overhead conductors), Ducast (manhole covers and engineering castings), GERAB (pipes and tubes, fittings, flanges, valves, stud bolts and gaskets), DUCAB (cables, components and accessories) and Cast Aluminium Industries (recycling and related services) to name a few.
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
1 World Economic Forum 2019 2 INSEAD 2019 3 World Bank 2019 4 McKinsey 2019
#1IN THE MENA REGION
• Aluminium Exporting Country
• Global Competitive Index1
• Global Innovation Index2
• Ease of Doing Business3
• Access to Electricity3
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 East4
#1United Arab Emirates Abu Dhabi
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
KIZAD industrial and logistics ecosystemWELCOME 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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CREATING POSSIBILITIES IN THE METALS INDUSTRY
UNITED ARAB EMIRATES
1 Fitchconnect 2 World Steel Association 3 Gulf Aluminium Council 4 World Aluminium 5 Mordor Intelligence
/ Ambitious Growth Plans Driving the Industry
IN THE REGION
$152BILLION DOLLARS
Forecasted Value of GCC Construction Industry by 2029 1
9%GCC Share in Global Primary Aluminium Production in 2019 4
6+MILLION TONS
Expected Primary Aluminium Production in the GCC in 2020 3
44.2MILLION TONS
Middle East Crude Steel Production in 2019 2
$3.5BILLION DOLLARS
Estimated Value of GCC Structural Steel Fabrication Market in 2018 5
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/ UAE – a global hotspot for the metals sector
1 World Aluminium 2 World Steel Association
906.2KILOGRAMS
Apparent Per Capita Steel Use in the UAE in 2018 2
8.7MILLION TONS
Crude Steel Consumption in the UAE in 2018 2
4% 3.3MILLION TONS
Volume of Crude Steel Production in the UAE in 2019 2
UAE’s Share of Global Aluminium Production in 2019 1
8MILLION TONS
Finished Steel Consumption in the UAE in 2018 2
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
/ BUSINESS ECO SYSTEM AND INFRASTRUCTUREPresence of Anchor Industries Enabling Easy Access to Raw Materials: Aluminium and Steel
Abu Dhabi is home to some of the largest primary raw material suppliers in the region including Emirates Global Aluminium and Emirates Steel. Emirates Global Aluminium (EGA) based out of KIZAD is the largest producer of premium Aluminium in the world. EGA shipped around 600,000 tonnes of Aluminium from Khalifa Port in 2018. Emirates Steel, based out of Abu Dhabi Industrial City (63 KM from KIZAD), is the only integrated steel plant in the UAE. Emirates Steel produces key raw materials such as rebars, wire rods and heavy sections.
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
WORLD’S LARGEST PREMIUM ALUMINIUM PRODUCER
• Hot metal (ready for re-melt casting)
• Billets for extrusion and forging (for construction, industrial, transportation and automotive purposes)
• Rolling products (for packaging, can stock alloys, lithographic sheets and the automotive industry)
• High-purity and foundry re-melt products (for electronics and aerospace, as well as automotive applications)
EMIRATES GLOBAL ALUMINIUMEMIRATES STEEL
THE ONLY INTEGRATED STEEL PLANT IN THE UAE
• Heavy sections (suitable for construction, industrial and engineering applications)
• Reinforcing bar (for civil engineering and building projects)
• Wire rod (for engineering applications, nails, pins, construction, fencing materials)
• Direct reduced iron (an alternative material to scrap steel)
• Steel billets (to produce rebar, wire rod or coil)
• Sheet piles (for retaining walls, land reclamation, underground structures)
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
HOT METAL ROAD TO DELIVER ALUMINIUM IN MOLTEN FORM TO THE FACTORY
KIZAD offers innovative industry solutions such as hot metal road - a specially constructed roadway that enables the cost-effective and energy-efficient transport and delivery of aluminium in molten form- that gives downstream Aluminium industries a significant cost advantage. As melting of Aluminium is an energy intensive process, the hot metal road helps the downstream industries to save significantly on their energy usage. Combined with already competitive utility rates in Abu Dhabi, such industry innovations make KIZAD a unique location for downstream metals industry.
LARGE AREAS OF SERVICED LAND PARCELS FOR FUTURE EXPANSIONS
Spread over an area of 410 KM2, KIZAD can accommodate industries of any scale due to the meticulous master plan of the industrial park. Large parcels of serviced land available in the metals cluster are particularly suitable for upstream metals and downstream metal conversion industries. Because KIZAD comprises multiple industrial cluster, land is allocated by grouping certain industries and service providers based on how best they can benefit one another.
RELIABLE SUPPLY OF UTILITIES AT HIGHLY COMPETITIVE RATES
KIZAD has sufficient network infrastructure for power, gas and water, ensuring reliable and efficient supply of all necessary utilities for energy intensive entities in steel and aluminium downstream industries. Abu Dhabi offers the most competitive utility rates in the UAE, making it a very cost-efficient location for downstream manufacturing activities in the metals sector.
CHOICE OF FREE ZONE AND DOMESTIC INDUSTRIAL ZONE FACILITIES
KIZAD offers both Free Zone and Domestic Industrial Zone facilities thereby opening up a wide range of possibilities to suit the investors’ business strategies and operations. While the Free Zone entities can enjoy 100% foreign ownership and easy customs procedures, manufacturing / industrial entities in Domestic Industrial Zone can enjoy duty-free trade in the GCC region.
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
“ KIZAD offers a wide range of outstanding services and business solutions that are
suitable for all types of business activities such as manufacturing, logistics, trade and distribution. Being stationed on the doorstep of Khalifa Port among the world’s most advanced deep seaports is another logistical advantage”.
CHRISTIAN WITSCH CEO, TALEX
“ The best choice was to move to KIZAD. The area was developed to handle the
high impact of heavy industry. Besides, KIZAD will be significant industrial hub, especially for aluminium as entity wishes to attract significant investments in the downstream industry”.
WAHEED AHMED GENERAL MANAGER, CAI
“ Our facility in KIZAD has expanded our portfolio by introducing electrical
conductive grade and aluminium alloy rods, wires, and bare overhead conductors, providing our customers with a greater range of Ducab products to choose from and increasing convenience for them and broadening the solutions we are able to provide to them”.
MOHAMMED A. AL MUTAWA CHIEF COMMERCIAL OFFICER, DUCAB
“ We set up base in KIZAD in 2018 and though new entities do face obstacles, KIZAD’s
impressive headquarters is a one-stop set-up service facility. The presence of many related government agencies at KIZAD also saves loads of time and energy while setting up business, especially for SMEs”.
CHINMAY OZA CEO, ROBUST STEEL
“ AGPC chose KIZAD as its base due to the availability of land and utilities and with
good connection to the UAE road network and proximity of the new Khalifa Port. In future we expect most of our raw material imports as well as pipe exports to non GCC countries to be shipped via Khalifa Port”.
MITSURU ANEZAKI GENERAL MANAGER, AGPC
“ KIZAD could add enormously at the planning and development phase of the projects by
engaging with the investor at regular intervals and offering help to plug in gaps between the authority’s requirements and investor expectation”.
WAHEED AHMED GENERAL MANAGER, CAI
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
EASY GLOBAL ACCESSCreating Possibilities to Grow and Succeed
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
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
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
The Ideal Location to Serve the Growing Markets in the Middle East and Africa
KIZAD 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. It is perfectly located to serve the growing markets in the Middle East and Africa that offer some of the biggest opportunities for the metals sector through their massive investments in the construction and infrastructure projects.
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
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CREATING POSSIBILITIES IN THE METALS INDUSTRY
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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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CREATING POSSIBILITIES IN THE METALS INDUSTRY
/ 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
• ‘MADE IN UAE’ certificate for qualified products
• 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
Enabling Significant Cost Savings• The most competitive utility rates in the UAE
• Unique “Hot Metal Road” enabling lower energy consumption and inventory costs
• Customs duty benefits on imports of raw material and capital goods for manufacturing
• Prime location facilities at the most competitive lease rates
/ KEY CUSTOMER BENEFITS
Flexibility in Scale of Operations• High capacity utilities network and
infrastructure provisioned to support businesses of all scales
• Future-ready development with provisions for expansion and integration with new projects
• Option to operate for the local and regional/global markets through freezone and domestic industrial zone facilities
• Flexibility in lease tenure and company structuring
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 of aluminium and steel enable short delivery lead times
• Non-restricted exclusive road for movement of project cargo and over-sized structures to fast-track set-up logistics
• Technical support from key partners and industry leaders
Growing Community of Businesses, Clusters and Amenities• Multiple residential, social areas, leisure
facilities within 10 minutes’ drive
• Multiple on-site staff accommodation facilities are under various stages of planning and development
• Growing ecosystem with primary metals producers and downstream metal products manufacturers
• Clustered approach with shared amenities for better planning and leaner development for customers
CREATING POSSIBILITIES IN THE METALS INDUSTRY
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