Ta’ziz Secures $28.5 Billion in Global Agreements to Boost UAE Chemicals Production

Major Agreements Announced at Make it in the Emirates Forum

Abu Dhabi’s Ta’ziz announced on Tuesday a series of agreements totaling $28.5 billion aimed at bolstering the chemicals sector in the UAE. These agreements include substantial offtake and feedstock contracts with major players such as Adnoc and Proman for methanol, Emirates Global Aluminium for caustic soda, and Mitsubishi Corporation for ethylene dichloride, vinyl chloride monomer, and caustic soda. The announcement was made during the Make it in the Emirates forum, highlighting the UAE’s commitment to expanding its industrial capabilities.

The agreements span durations of five to 25 years, ensuring a long-term commitment to the production and supply of essential chemicals. Companies like Sanmar Group, Tricon, and Vinmar are also participating in these deals, further solidifying a collaborative approach to enhancing the UAE’s industrial landscape.

Strategic Vision for Industrial Growth

Mashal Al Kindi, Chief Executive of Ta’ziz, stated that securing both local feedstock and global demand is crucial for translating the UAE’s industrial vision into reality. He emphasized that these agreements will anchor world-scale chemicals production, strengthen domestic value chains, and create sustainable economic value, jobs, and supply-chain resilience for the nation.

Founded in 2020 as a joint venture between Adnoc and Abu Dhabi’s investment and holding company ADQ, Ta’ziz focuses on manufacturing, industrial services, logistics, and utilities. The company’s industrial zone is projected to produce 4.7 million tonnes per annum (mtpa) of chemicals upon completion in 2028, which includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant, and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex.

Impact on the UAE’s Industrial Sector

The new agreements will enable Ta’ziz to supply approximately 200,000 dry metric tonnes of caustic soda annually to Emirates Global Aluminium’s Al Taweelah alumina refinery, located in the Khalifa Economic Zones Abu Dhabi. Additionally, Adnoc Gas has secured a 25-year feedstock agreement to supply natural gas to the Ta’ziz methanol project, valued at over $5 billion. Furthermore, a 20-year salt supply agreement with Abu Dhabi-based Sama Salt has been established to support production at Ta’ziz’s PVC complex.

These strategic partnerships are expected to leverage local resources, ensuring a reliable and sustainable supply of critical raw materials. This approach will significantly enhance domestic value chains and advance the UAE’s goal of achieving greater industrial self-sufficiency.

Current Trends in the UAE’s Industrial Economy

The industrial sector is a vital component of the UAE’s economy, contributing Dh200 billion ($54.45 billion), a remarkable 70 percent increase since 2021. Industrial exports have also surged to Dh262 billion, which includes Dh92 billion in advanced industrial exports. Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, highlighted these figures during his address at the Make it in the Emirates event, underscoring the growth trajectory of the UAE’s industrial landscape.

Frequently Asked Questions

What is Ta’ziz?

Ta’ziz is a joint venture between Adnoc and ADQ focused on chemicals production and industrial services.

What agreements did Ta’ziz announce?

Ta’ziz announced $28.5 billion in global offtake and feedstock agreements to enhance chemicals production.

How will these agreements impact the UAE’s economy?

The agreements will strengthen domestic value chains, create jobs, and promote industrial self-sufficiency.

What is the production capacity of Ta’ziz’s industrial zone?

The industrial zone is expected to produce 4.7 million tonnes per annum of chemicals by 2028.

Who are the partners involved in Ta’ziz’s agreements?

Partners include Adnoc, Emirates Global Aluminium, Mitsubishi Corporation, and several others.