10
November
2020
Disclaimer

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

This information does not constitute an offer, or an invitation to purchase, securities of Abu Dhabi Developmental Holding Company PJSC (ADQ) in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation.  Potential users of this information are requested to inform themselves about and to observe any such restrictions.
ADQ's securities cannot be offered, sold, transferred or otherwise disposed of, in the United States, or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act of 1933, as amended (the Securities Act)), absent registration, or an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act.  ADQ has not registered, and does not intend to register, any of its securities under the Securities Act or to conduct a public offering of securities in the United States.

This communication has not been approved by the United Kingdom Financial Conduct Authority. This communication does not constitute an offer of the securities to the public in the United Kingdom. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order), and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order, and (iv) any other persons to whom it may otherwise lawfully be communicated or caused to be communicated (all such persons in (i) to (iv) together being referred to as Relevant Persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this communication or any of its contents.

This is an advertisement and not a prospectus for the purposes of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the Prospectus Regulation). Investors should not subscribe for or purchase any securities referred to in this advertisement except on the basis of information contained in the base prospectus dated 29 April 2024, as supplemented by the supplement thereto dated 25 September 2024.

ADNOC and ADQ launch TA'ZIZ joint venture to drive growth in UAE Chemicals sector

Highlights

  • Potential anchor chemicals projects selected as part of USD 5 billion phase one investment
  • Development of Ruwais Derivatives Park to commence in early 2021 with initial chemicals production expected in 2025
  • TA’ZIZ investments to lay groundwork for Abu Dhabi's next generation of technology-driven industrial growth

The Abu Dhabi National Oil Company (ADNOC) and ADQ, one of the region's largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi's diversified economy, today announced TA'ZIZ as the name of the new joint venture (JV) established by both companies, which will drive the development of industrial projects within the planned Ruwais Derivatives Park and act as a catalyst for the UAE's economic diversification and technology-led growth.

The name TA'ZIZ, which in Arabic means advancement, strengthening, or creating a foundation, describes the ambition of ADNOC and ADQ as they kickstart the development of industrial growth in Ruwais. In addition, it aligns with ADNOC's drive to stretch the value from every barrel refined, shipped and sold, also targeting self-sufficiency with domestic production. In July 2020, ADNOC and ADQ announced their intention to establish the JV with incorporation in Abu Dhabi Global Market.

With ADNOC and ADQ working together to drive the next phase of technology-driven industrial growth in Abu Dhabi, both companies have also announced leadership appointments to the joint venture. Potential investment projects selected for a first phase will amount to more than USD 5 billion (AED 18 billion)  at the Ruwais Derivatives Park.

TA'ZIZ combines the strengths of ADNOC and ADQ to create a unique platform that will act as a key driver and catalyst for the UAE's industrial development and economic diversification. Our new partnership will strengthen our position as a globally competitive chemicals hub and destination for foreign direct investment, leveraging technology to further grow the UAE's advanced manufacturing base.

H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO

The creation of TA'ZIZ embodies the strategy and aspirations of both joint venture partners, not only in contributing to and diversifying the key industrial component of the UAE's future economy, but also in forging local collaborations needed to achieve such important developmental milestones. With companies such as Abu Dhabi Ports, Abu Dhabi National Energy Company (TAQA), Etihad Rail, Emirates Steel, DUCAB and Arkan, ADQ has much to bring to this joint venture, and we will fulfil the trust invested in us to ensure the success of TA'ZIZ.

H.E Mohamed Hassan Al Suwaidi, CEO of ADQ

The Chairman of the TA'ZIZ Board of Directors is Mr. Khaled Salmeen (ADNOC), with Mr. Ahmed Jasim Al Zaabi (ADNOC), Mr. Omar Suwaina Al Suwaidi (ADNOC), Mr. Nabeel Qadir (ADQ), and Mr. Hamad Al Hammadi (ADQ) being appointed as Board members. Mr. Khaleefa Yousef Al Mheiri (ADNOC) is appointed as Acting Chief Executive Officer.

Following a detailed feasibility study, TA'ZIZ will explore potential projects to manufacture a number of chemicals at a global scale, with opportunities for additional investors and partners to participate. Total investment in these projects could be in excess of USD 3 billion (AED 11 billion), with most of the chemicals produced in the UAE for the first time.

An industrial ecosystem will be created by ADNOC and ADQ, including a new port, utilities, infrastructure, feedstock supply and shared services at a total cost of well over USD 2 billion (AED 7 billion). These facilities will be made available to new investors under a "plug and play" concept, meaning that new projects can be plugged into the existing park infrastructure, lowering the cost of investment and further enhancing the Ruwais Derivatives Park's competitiveness. These developments will enhance the efficiency of logistics across the new identified projects, supporting the oil and gas services sector and associated industries.

The creation of a park management company is also underway to ensure ease of doing business and to help facilitate contact with relevant service providers and Government agencies for investors. This entity will prioritize digital integration across its services offer, further strengthening the Ruwais advanced technology value proposition over the long-term.

Contracts have been awarded for the first stages of development for the park site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety and environment impact assessments. Once completed in late 2020, these surveys will enable civil engineering works to prepare the park site for construction and dredging for an entirely new port facility. Several design and engineering contracts will be awarded early 2021 for the design of the chemical plants as well as the required ecosystem.

The Ruwais Derivatives Park enjoys strong synergies with ADNOC's integrated downstream assets for feedstocks and services, as well as advantaged maritime, land and air logistics and transport links. The park site is adjacent to the Ruwais Industrial Complex and enjoys a favorable location at the crossroads of east-west trade flows and routes to the UAE's target markets, with a third of the world's population accessible within four hours by plane. The city of Ruwais is today well-positioned to further grow and flourish with the influx of families that seek to build careers and lives in what has become a dynamic, highly attractive residential community.

About ADQ

Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.

For more information, visit adq.ae or write to media@adq.ae. You can also follow ADQ on X, Instagram and LinkedIn.

Direct to your inbox

ADQ News and Insights delivered directly to your inbox

Latest News

The ADQ FWD platform brings together industry experts, government, and advocacy leaders to discuss and address issues of economic and strategic importance for the UAE.