Khalifa Industrial Zone of Abu Dhabi (Kizad) is expected to add tens of billions of dollars to Abu Dhabi's economy by 2030 as it leads the emirate's diversification drive.
Industry Insights Forum: In-depth coverage and video reports on Kizad
Last Updated: May 03, 2011
Abu Dhabi's future economy takes shape at free zone The planned Khalifa Industrial Zone of Abu Dhabi, a huge infrastructure project combining onshore manufacturing and a port, is designed to be a major plank in the emirate's diversification of its economy away from oil and gas. Read article
Kizad's key players talk numbers Khalifa Industrial Zone of Abu Dhabi's major players put the project into perspective. Read article
Capital's 'Kizad' free zone fires interest Abu Dhabi Ports Company is seeing strong interest in industrial firms looking to set up facilities at the Kizad project in Taweelah. Read article
Khalifa Port will help take strain of rise in shipments Mina Zayed Port and Musaffah ports are expected to handle 30 per cent more shipments this year. Read article
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More than 100,000 jobs are likely to be created at the free zone, which is hoped to contribute up to US$40 billion (Dh146.92bn) to the Abu Dhabi economy, with the private sector the source of many of those positions, say senior officials.
"Our responsibility to Abu Dhabi's vision is to provide an enabler to the [Abu Dhabi] 2030 vision," said Tony Douglas, the chief executive of Abu Dhabi Ports Company (ADPC). "Our target is very clear: 15 per cent of non-oil and gas GDP by 2030."
Conceived by the Abu Dhabi Government in 2006, officials plan for the 417 square km area in Taweelah to be a cornerstone of the emirate's goal to move its economy away from reliance on oil and gas revenues.
Manufacturing's intensive use of energy and labour make it a logical choice for diversification. The emirate has plentiful supplies of cheap energy and a pressing need to create jobs, especially for its nationals.
Tenants for the project will be selected based on the expertise and technology they provide, and how much value they bring to the economy, said Khaled Salmeen, the executive vice president for industrial zones at ADPC.
Mr Salmeen said aluminium, logistics, steel and construction were among the sectors Kizad was particularly focused on.
"What is clear is that we are not interested in something that is not a contributor to GDP," he said.
Kizad is also an important tool in the emirate's goal to shift the burden of driving the economy from the public to the private sector. Government-related companies are big drivers of the economy, with the public sector a main source of employment for locals.
Most of the businesses with which Kizad is in talks about setting up within the zone are private sector companies, said Mr Salmeen.
The 2030 vision aims to raise the contribution of non-oil exports to the emirate's GDP to 11 per cent by 2030 from 1.5 per cent now. It is hoped between 60 and 80 per cent of goods made at Kizad will be exported, making it a crucial part of that plan.
To some extent, officials will be keen to emulate the success of Jebel Ali Free Zone (Jafza) in Dubai, the region's oldest free zone. Companies within Jafza accounted for more than a quarter of the emirate's total trade last year.
But officials say the two zones will complement each other rather than act as direct competitors.
While trade and logistics companies are key occupiers of Jafza, Kizad will have more of an industrial focus.
The size of Kizad will also mean some of the trade in and out of the free zone will need to be serviced outside Khalifa Port, the seaport being developed in the zone.
Exports and imports will also come through Jafza's seaport, as well as the cargo terminal at Abu Dhabi International Airport and Dubai's Al Maktoum International Airport.
