Industrial Investment In Abu Dhabi

Three industrial zones are to be established in Abu Dhabi, Al Ain & Ruwais-They are not Free Zones.

1. Musafah industrial Zone : 14 K meter Total industrial area

its advantages :

• 30 Km from Abu Dhabi International Air port.
  * Only 30 KM a way from Abu Dhabi Downtown .

• 40 Km from Zayed Port .
• 50 Km from Al Taweelah Power plant.
• 11 Km From Sewwage Tretmant plant

the industrial zone will consist of

• Residential Area to accommodate Workers in the Zone
• Services Area & Downtown
• Manufacturing Area wish will be divided in to :

- Area #1 : Auto & Machinery Spare Part & Workshop

- Area #2 : foodstuff , Textile , and Soft Drinks Industry

- Area #3 : Engineering & Timber & Wood Industry

- Area #4 : Chemical & Plastic Industry

- Area #5 : Building Material & Construction Industry

- Area #6 : Hi - Tech Industry

1. Al Ain Industrial Zone
2. Al Ruwais Industrial Zone it’s a bout 235 Km West Of Abu Dhabi, its to be one of the Gulf leading petrochemicals Center

Some of the Existing Industries are :

- Al ruwais Oil Refinery daily production capacity 120 000 berrel per day.

- Gas production per year : million ton of broban ,1.41 million ton of butan ,

12. million Ton of nebtan

The investment in this sector is booming because of the additional local demand for Abu Dabi Gas by year 2000 witch is expected to reach 1100 mcf/d. ADNOC has crowded investmnt agenda with more than $ 1500 million for the petrochemicals Sector , $ 2500 million to be spent on expanding the Gas Facilities .

Abu Dhabi is going for petrochemicals Industry : its going to build a big complex in a joint venture with Copen-hagen - based borealis to produce ethylene .

The capacity had been Fixed at 600000 t/y . also a construction of an export - oriented plant with a capacity to produce 540000 t/y of caustic soda wich will also manufacture chlorine and salt for domestic consumption and hydrogen to be used in the Rewais refinery . the new plant will replace the existing units at the Um-Al-Nar refinery .

U.A.E Indestrial development Concerned Establishment

= Ministry Of Finance - Industrial Department:

As per the Federal Law No 1 of 1979 , the Industrial Department is entiteld to the following tasks, bering in mind the coordination with the local government Department in the concerned Emirate:

= Emirates Industrial Bank :

It is a financial and Development Establishment established to contribute to the the economy and diversify its productive structure by bulding new industries and supporting the existing ones , it fundementally direct its efforts to private establishments and companies and mixed economy establishment in the industrial field whose Capital is at least 51 % owned by U.A.E Nationals or State.

The bank finance the industries having convincing feasibily, technically and profitably on conditions that the industrial loan does not exceed 20% of the capital and reserv of the contributing bank or 60% of the gross expences of the project (incloding the active capital for 3 months) which is liess.

The bank offers 3 type of loans :

• short term loan : not exceeding 2 year duration assigned to financing capital of existing indutrial establishment
• short term loan : not exceeding 5 year duration aim to increase production line or renwal of existing industrial establishments
• long term loan s : not exceeding 8 years they are assigned to establishing new industrial project ,

= General Industrial Corporation : As per the decree law No 5 for 1979 and No 4 for 1994 the G.I.C. will :

• Propose an industrial policy for Abu Dhabi and supervise its implementation after its approval from executive Council.
• Prepare the Industrialization plan for Abu Dhabi .
• Study, execute,and manage industrial projects Totally owned by GIC and market their products on commercial bases.
• Support and encourage the private Industrial Sector.
• Participate with private Industrial Sector in joint projects and representing the Government in boards of joint projects with the private Sector

Industrial monetary Fund :

Why to invest in industrial sector :

• Energy supplies at reasonable price.
• Availability of local capital and transfer of technology through foreign partnership.
• Diversifying the source of income by encouraging industrialization.
• Complete infrastructure as vital for economic & social developments.
• Free trade & total freedom of currency exchange
• Customs exemption for import of machinery, equipment, spare parts & raw materials required for any industry.
• Total tax holiday on interest & income.
• Free of social problems like unemployment, poverty besides the country being politically stable.
• Private sector industries to get priority .
• Unrestricted imports mainly due to favorable balance of trade.
• Strategic geographical location of the U.A.E
• A Vary Low Land Rental (10 files Per Foot ) In Abu Dhabi , 4 files Per Foot in AL Ain
• Infra structure is will build

Industrial projects are classified into two categories:

1. Pioneering Projects to boost the national economy.

Factors applied are:

• National having not less than 51% of aggregate capital.
• Use available local raw materials
• Providing suitable employment
• Capital intensive and minimum number of employees
• Realizing highest value added possible.
• Products for export to complete in foreign markets
• Using most modern technology
• Realizing reasonable return in long run.

1. Other projects not having the above factors but relying on highly intensive expatiate workers recommend the following.

1. Provide energy supply at subsidized prices.
2. Provide land on lease in prime locations at subsidized rates.
3. Provide soft loans to finance.
4. Prepare training programs to workers for improving their expertise.
5. Prepare program for exporting.
6. Provide customs exemption for imports.

To Establish any New Industrial Project in Abu Dhabi

Restrictions are not imposed on Capital formation; however, projects with national capital not less than 51% have advantage of leasing the land at a nominal value of 10 fils per sq. foot.

The General Industry Corporation is the authority for issuing industrial license for non-oil projects in the Emirate of Abu Dhabi. To obtain an industrial license certain formalities have to be fulfilled; most important are:

1. Apply in writing to the corporation & fill-in the required application form.
2. Provide the layout of the are required giving the basis of reckoning the same.
3. Partnership contract executed by partners
4. Trade name approved by Abu Dhabi Chamber of Commerce & Industry
5. Certificate from local municipal authorities that the proposed project causes no harm nor result in environmental pollution.

Information can be obtained from:
Chairman
General Industry Corporation
P.O. Box 4499 Chamber Tower
Corniche Road, Abu Dhabi